INTERVIEW-Anvil seeks more resources to boost output
By Eric Onstad
2 October 2007
Source: Reuters News
KINSEVERE MINE, Congo, Oct 2 (Reuters) - Anvil Mining Ltd is rushing to boost resources at its flagship Congo copper mine to allow it to double planned output, an official said.
The current resource of 1.6 million tonnes of copper at Anvil's Kinsevere mine has good potential to expand, Vice President of Exploration Nick Franey told Reuters during a visit to the mine.
"It's very, very rich," he said in an interview late on Monday, referring to Kinsevere's underground sulphide deposit, which has only begun to be identified.
The mine launched output of concentrate in June and will commission an electric arc furnace in January to produce 25,000 tonnes of copper ingots per year.
Another processing plant, a lower-cost solvent extraction facility with 60,000 tonnes of annual capacity is due to be at full production by 2010.
"One idea is that it might double (to 120,000 tonnes a year). The question is whether the resource is big enough."
The Kinsevere mine is Anvil's flagship operation, due to account for the bulk of production from the firm's three operations, which is due to grow to 110,000 tonnes of yearly output by 2010 from 45,000 tonnes expected this year.
The furnace will continue to operate in tandem with the larger solvent extraction facility as long as strong copper prices make it economically feasible, Franey said.
ACCELERATED PROSPECTING
This year has seen a big expansion in exploration, with 120,000 metres of drilling expected to be completed at Anvil's mines and properties, more than triple the level in 2006.
A hefty share of prospecting is taking place at Kinsevere, located 27 km (15 miles) north of Lubumbashi, which state miner Gecamines barely touched in the 1990s before abandoning it to focus on other operations.
The firm has recently completed drilling at three main areas of the property to firm up the surface oxide resource, which extends down to around 110 metres.
An updated resource is due to be released before the end of the year, which will include new ground near the existing three open pits.
The final phase of exploration, to identify the deeper sulphide deposits, should be done by mid-2008.
Anvil has some encouraging preliminary results from the sulphide zone, with one hole showing 208 metres at a relatively high grade of 3.2 percent.
"It's just a taste of things to come," Franey said.
The width and depth of the sulphide deposits are variable and uncertain, but those deeper areas typically account for more resources than the shallower oxide areas.
"It's a big unknown at the moment, but I do know that there are some pretty big deposits in this part of the world," he said.
The first two stages at Kinsevere, bringing the mine to 85,000 tonnes per year, has a capital cost of $273 million and a mine life of 13 years, which could be extended when more resources are confirmed.
Anvil has two other mines in Democratic Republic of Congo, the Dikulushi operation that launched in 2002 and the Kulu mine.
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