Yet with a resource of 1.94 million tonnes, at an average grade of 8.59% copper and 266 grams per tonne silver, Anvil maintains the project is worth hanging on to and is keen to re-enter the country when some semblance of normality returns.
“These are difficult and uncertain times for miners in the Congo,” executive director, Bill Turner, said.
“But the resources are so attractive and so rich. These projects can really leverage a company, Dikulushi has the potential to earn Anvil more money than we would know what to do with.”
A pre-feasibility study by Signet Engineering Pty Ltd on the greenfields project found it feasible and economically robust.
However, the unstable political situation has rendered mining impossible.
The resource model is based on 40 diamond and RC drilling holes completed by Anvil totaling 4420m and a 48 diamond drill hole program completed by the BRGM (French Government Geological Survey) in the 1970s and 80s.
Canadian company First Quantum Minerals, a 19% shareholder of Anvil, has recently purchased, in joint venture with metal trading company Glencore, several projects in neighbouring Zambia not far from Dikulushi.
“First Quantum Minerals has bought several properties including the Mufulira smelter and mine,” Turner said.
“These projects will not only improve infrastructure in the area but will make it easier to sell our concentrate.”
Turner said much of Dikulushi could be easily mined (open pit to 100m) and because of the unusually high content of copper in the mineral chalcocite, easily processed.
“Dikulushi will cost us $10 million to get it up and running,” he said.
“When the political situation normalises it will be one of the first cabs off the rank.”
Turner is confident rational thinking will prevail in DRC as lack of economic activity is crippling the country. Major mining players such as BHP, Iscor, Anglo American and Billeton all have a stake in the political outcome of peace negotiations.
In 1998 the Dikulushi project was valued at $101 million. These days Anvil shares trade at about 5c, bringing the company’s market capitalisation to $6 million.
“We are obviously disappointed by the value the market places on the company,” Turner said. “But realistically we have a gold project in Ghana and the market is disenchanted with gold, and a copper and silver project in a country with political disturbance.”
Anvil holds a 20% interest in the Bogoso gold mine, and is currently looking for other properties in Ghana. During the June quarter Bogoso produced 31,626 ounces of gold at a cash cost of $187.14/oz and a total cash cost of $195.51/oz.
The company also has its eyes on a project in South-East Asia, but Turner was unable to give MiningNews.net details.
“We are looking at a logistically well-located, high-grade zinc project in South-East Asia that will be an interesting project if it comes home,” he said.
