DEMOCRATIC REPUBLIC OF THE CONGO - The directors of Montreal-based ANVIL MINING have approved building a Stage Two, 60,000-t/y SX/EW plant at the companys 95%-owned Kinsevere copper project. The project is located 27 km north of Lubumbashi, the capital of Katanga province.
The capital cost including contingency is estimated at $238 million, with a construction period of 24 months. Using a 10% discount rate for an initial 15-year mine life and a copper price of $1.20/lb, the feasibility study demonstrates a net present value of
$89 million and an internal rate of return of 17%, with a payback period of 6.6 years. Using copper prices of $2.00/lb and $3.00/lb, the NPVs increase to $527 million and $1.1 billion, respectively, and the IRRs increase significantly to 46% and 76%, respectively.
Stage One development of the Kinsevere project is approximately 86% complete. Stage One involves construction of an open pit mine, a heavy media separation plant and an electric arc furnace.
Anvil puts the measured and indicated resource at 20.1 million t grading 4.3% Cu and 0.22% Co. The inferred resource contains another 20.9 million t grading 3.4% Cu and 0.06% Co. The NI 43-101 Kinsevere technical report was filed on SEDAR (www.Sedar.com) on Feb. 23, 2007.