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Avarone Metals Inc. (AVM)
Market: CDN Consolidated
$ 0.045
Aug 2, 2014, 2:17 AM EDT
Change: -0.01 (-18.18%)
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Dikulushi Mine: Back On Track - Production at Kulu will start in November

TSX, ASX: AVM
Common shares outstanding: 29 million

PERTH, Oct. 3 /CNW/ - Anvil Mining Limited (TSX, ASX: AVM) is pleased to
announce that the Dikulushi mining and processing operations have outperformed
in all areas through the September 2005 quarter, as previously indicated,
following the full re-accessing of the main orebody and the commissioning of
the second ball mill in the second quarter of 2005.

Dikulushi Mine production for the three quarters to September 30, 2005 is
as follows:

<<
-------------------------------------------------------------------------
                       March Quarter    June Quarter    September Quarter
                            2005            2005              2005
-------------------------------------------------------------------------
Ore Processed (tonnes)     80,812          81,518          120,822
-------------------------------------------------------------------------
Head Grade (% copper)        3.9%            4.8%             5.5%
-------------------------------------------------------------------------
Recovery (copper)           82.1%           85.7%            86.7%
-------------------------------------------------------------------------
Copper Produced (tonnes)    2,559           3,395            5,777
-------------------------------------------------------------------------
Silver Produced (ounces)  245,044         301,967          586,875
-------------------------------------------------------------------------

The plant ran at an average throughput of 1,313 tonnes per day during the
third quarter of 2005 reflecting an annualised rate of copper production of
22,500 tonnes. This daily rate is expected to be maintained during the fourth
quarter of 2005 and for some time beyond. Planning for Stage III underground
mining below a re-scheduled 150 metre open pit depth has commenced and
development of this transition phase is expected to commence during the first
half of 2006.
As previously announced, on July 30, 2003 and July 28, 2004, results from
deep drilling programs carried out during 2003-2004 under the current open pit
extended the known mineralisation to a vertical depth of approximately 300
metres from surface. These drilling programs returned intersections of    
25.4 metres of 12.1% copper and 404 g/t silver at a vertical depth of      
143 metres, 10.3 metres of 16.6% copper and 506 g/t silver at a vertical depth
of 157 metres and 14.8 metres of 16.3% copper and 355 g/t silver at a vertical
depth of 293 metres. Additional infill drilling is expected to be commenced
before the end of 2005.

Kulu Project (Kulumaziba), Kolwezi Region

The steel erection of the Heavy Separation Plant (HMS) plant on the Kulu
coarse rejects/tailings deposit is approximately 70% complete and
commissioning is now expected to begin before the end of November 2005, ahead
of the previously forecast year end commissioning date. All structural work is
complete and treatment equipment and piping is in place. Electrical wiring and
controls have still to be completed.
The ability to reuse the HMS plant from the Dikulushi Mine (following the
installation of the ball mill and flotation circuits) has enabled the Company
to substantially reduce the development costs for the starter-project on the
Kulu deposit. The mining of the coarse rejects/ tailings of the Kulu deposit
is a relatively simply operation with no waste stripping and no requirement
for drill and blast activities. In anticipation of the commissioning of the
plant in the latter half of November, mining commenced on September 22, 2005
and to date some 18,000 tonnes of ore have been stockpiled close to the plant.
The average grade of the resource targeted for the first three years of
operations is over 6.0% copper.
Resource evaluation work is continuing along the Kulu deposit and the
sampling and assaying of the section from the 0km mark to the 12.5km mark is
now completed. An updated resource estimate should be completed for this first
section by mid-November 2005. Drilling is still being carried out on the last
section of the river between the 12.5km and the 14km marks.
Anvil President and CEO, Bill Turner said, "It is particularly pleasing
to see the Dikulushi mine back on track to reach record copper production for
the third quarter of 5,777 tonnes (12.7 million pounds of copper) and now
running at the annualised rate of more than 20,000 tonne of copper that was
forecast at the completion of the Stage II plant. We are very proud of the
excellent progress at Kulu which will be our next copper mine in the DRC
delivered in accordance with our growth plan and again with low capex
requirements. Given the good performance of the Dikulushi mine in the third
quarter, and despite the problems associated with the backlog of waste removal
and the inability to access the main orebody that occurred in the first half
of the year, with the Kulu mine coming on stream, we maintain our 2005
targeted production of 20,000 tonnes of copper and 1,600,000 ounces of
silver."

Additional Notes:
Caution Regarding Forward Looking Statements: Statements regarding the
Company's plans with respect to future mining activities in the DRC, the
expansion of the Dikulushi operation, the deep drilling at Dikulushi and the
development of the Kulu deposit are forward-looking statements. There can be
no assurance that Anvil's future plans will materialize or that future
required regulatory approvals will be obtained. There can be no assurance as
to the exact result of the recent development and expansion activities of the
Company's operations and activities in the Democratic Republic of Congo.
>>
%SEDAR: 00020549E

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