DIKULUSHI COPPER-SILVER MINE

KATANGA REGION
DEMOCRATIC REPUBLIC OF CONGO

TECHNICAL REPORT

Prepared by

ANVIL MINING LIMITED

LEVEL 2
38 RICHARDSON STREET
WEST PERTH 6005
WESTERN AUSTRALIA

Authors: Nicholas Franey VP Exploration, Anvil Mining Limited

Malcolm Hillbeck VP Operations, Anvil Mining Limited
Gerry Fahey Director, FinOre Mining Consultants
(A division of CSA Australia Pty Ltd)

Date: March 6, 2006

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 TABLE OF CONTENTS

ITEM 1. TITLE PAGE ......................................................................................1

ITEM 2. TABLE OF CONTENTS....................................................................2
ITEM 3. SUMMARY......................................................................................13
ITEM 4. INTRODUCTION ............................................................................15
ITEM 5. RELIANCE ON OTHER EXPERTS ...............................................16
ITEM 6. PROPERTY DESCRIPTION AND LOCATION ............................16
ITEM 7. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,
INFRASTRUCTURE AND PHYSIOGRAPHY..............................19
ITEM 8. HISTORY .........................................................................................19
ITEM 9. GEOLOGICAL SETTING ...............................................................20
9.1 Regional Geology ............................................................................ 20
9.2 Local Geology.................................................................................. 22
ITEM 10. DEPOSIT TYPES.............................................................................23
ITEM 11. MINERALIZATION ........................................................................24
ITEM 12. EXPLORATION...............................................................................24
ITEM 13. DRILLING........................................................................................24
13.1 Anvil Programme 1997.................................................................... 25
13.2 Anvil Programmes 2002 & 2003 ..................................................... 25
13.3 Anvil Programme 2004.................................................................... 26
13.4 Anvil Programme 2005/6................................................................. 26
ITEM 14. SAMPLING METHOD & APPROACH..........................................26
14.1 Survey Control ................................................................................. 27
14.1.1 Collar pickups ................................................................................ 27
14.1.2 Topography and pit surveys..............................................................27
14.1.3 Downhole surveys.............................................................................27
14.2 Density determinations .................................................................... 27
14.3 Oxidation.......................................................................................... 28
14.4 Diamond Core Sampling and Handling Procedures ........................ 28
14.4.1 Recovery of Drill Core......................................................................28
14.4.2 Logging of Drill Core .......................................................................28
14.4.3 Sampling of Drill Core......................................................................28
14.4.4 Dispatch of Samples to the Laboratory.............................................29
14.5 RC Sample Handling Procedure ...................................................... 29
ITEM 15. SAMPLE PREPARATION, ANALYSIS & SECURITY................29
15.1 1997 Campaign ................................................................................ 29
15.2 2002 & 2003 Campaigns ................................................................. 30

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 15.3 2004 Campaign ................................................................................ 30
15.4 2005/6 Campaign ............................................................................. 30
ITEM 16. DATA VERIFICATION ..................................................................30
16.1 Twin Drilling ................................................................................... 30
16.2 Twin Anvil and BRGM Diamond Drill Holes Comparison ............ 31
16.3 Twin Anvil RC and BRGM Diamond Drill Holes Comparison...... 31
16.4 Twin Anvil RC and Anvil Diamond Drill Holes Comparison ........ 32
16.5 Global Comparisons of Anvil versus BRGM Assay Results........... 32
16.6 Discussion of Anvil and BRGM Drill Hole Assay Comparisons.... 32
16.7 Data Preparation............................................................................... 33
16.8 Drilling Processes and Assessment of 1997 Drilling....................... 34
16.8.1 Diamond Drilling Program ...............................................................34
16.8.2 RC Drilling Program.........................................................................35
ITEM 17. ADJACENT PROPERTIES .............................................................36
ITEM 18. MINERAL PROCESSING & METALLURGICAL TESTING ......36
ITEM 19. MINERAL RESOURCE & MINERAL RESERVE ESTIMATES .37
19.1 Geological Interpretations................................................................ 37
19.2 Surface and Solid Modelling ........................................................... 37
19.2.1 Topography .......................................................................................37
19.2.2 Mineralisation ...................................................................................38
19.2.3 Total Volume Model.........................................................................39
19.3 Sample Flagging .............................................................................. 40
19.4 Statistics and Sample Compositing.................................................. 40
19.4.1 Univariate Statistics ..........................................................................41
19.4.2 Copper Distributions.........................................................................41
19.4.3 Silver Distributions ...........................................................................43
19.4.4 High Grade Cut Analysis ..................................................................45
19.5 Variography ..................................................................................... 46
19.6 Grade Interpolation .......................................................................... 55
19.6.1 Search Specifications ........................................................................55
19.6.2 Grade Estimation ..............................................................................56
19.6.3 Density Assignment ..........................................................................57
19.7 Estimation Validation ...................................................................... 57
19.7.1 Statistical and Visual Validation.......................................................57
19.7.2 Validation by Scenarios and Sensitivity Assessment .......................59
19.8 Resource Classification and Reporting............................................ 60
19.8.1 Resource Classification 60
19.8.2 Resource Reporting...........................................................................61
19.8.3 Grade Tonnage Curves .....................................................................61
19.8.4 Mineral Reserve Estimates ...............................................................66
19.9 Open Pit Ore Reserves ..................................................................... 66
ITEM 20. OTHER RELEVANT DATA & INFORMATION..........................67
ITEM 21. INTERPRETATION & CONCLUSIONS .......................................67

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ITEM 22. RECOMMENDATIONS..................................................................67
ITEM 23. REFERENCES .................................................................................67
ITEM 24. CONSENT FORMS AND CERTIFICATES ...................................69
ITEM 25. ADDITIONAL REQUIREMENTS, PRODUCTION PROPERTY.76
ITEM 25. (A).1 Mining Method ................................................................................ 76
ITEM 25. (A).2 Geotechnical Parameters.................................................................. 79
ITEM 25. (A).3 Mineral Processing........................................................................... 80
ITEM 25. (A).4 Tailings Storage Facilities (TSF) ..................................................... 83
ITEM 25. (A).5 Pit Optimization and Mine Design .................................................. 83
ITEM 25. (B) Recoverability .................................................................................. 89
ITEM 25. (C) Markets ............................................................................................ 89
ITEM 25. (D) Contracts .......................................................................................... 90
ITEM 25. (E).1 Environmental Status ....................................................................... 90
ITEM 25. (E).2 Waste Landform............................................................................... 90
ITEM 25. (F) Taxes ................................................................................................ 91
ITEM 25. (G) Capital Cost and Operating Cost Estimates ..................................... 91
ITEM 25. (H) Economic Analysis .......................................................................... 92
ITEM 25. (I) Payback ............................................................................................ 93
ITEM 25. (J) Mine Life ......................................................................................... 93
ITEM 26. ILLUSTRATIONS ...........................................................................94

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 GLOSSARY OF TERMS

/ Per.

$ Dollars.

% Percentage.

.csv Comma separated text commonly used to transfer large arrays of data.

2-D Two dimensional, usually in reference to a cross section, plan or long

section view of geological or mining data.

3-D Three dimensional, usually in reference to a cross section view of

geological or mining data.

Ag The chemical symbol for the metallic element for silver.

AI Abrasion Index, a measure used in determining the maintenance due to

wear from processing ore in a plant.

ALS The acronym for Analytical Laboratory Services Pty Ltd an Australian
based analytical laboratory specializing in resource project assaying.

AMC The acronym for Australian Mining Consultants Pty Ltd, an Australian
based geological and engineering consulting company.

Anisotrophy Condition of having different properties in different directions used mainly

in reference to different mathematical formula applied to the three
directions at right angle to one another when estimating grades.

Anticline A fold, generally convex upward, the core of which contains the
stratigraphy of older rock-s.

ANVIL Anvil Mining NL, an Australian registered and stock exchange listed
mining company.

As The chemical symbol for the element Ardenic.

Argillite A description of a rock that is made up mainly of silt to fine sand size
particles that has been moderately altered by metamorphism.

Arkose A rock made up sand to coarse sand particles that are at least 25% feldspar.

Arsenopyrite A mineral that is made up of arsenic, iron and sulfur.

Azurite A deep blue mineral that is made up of copper with carbonate and water and
found mainly in the weathered parts of copper ore bodies. Can contain up to
55% Cu.

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 BCM The abbreviation for Bank Cubic Metres a measure of volume applied to
unbroken rock.

BMWI Ball Mill Work Index, a measure used in determining the amount of energy
required to grind rock to a particular size.

Bimodal Statistical term for two peaks in a graph of values.

Bornite A reddish brown to iridescent purple mineral made up of copper (up to

63%) iron and sulphur.

BQ The size of a diamond drill hole that produces a cylinder of rock of

approximately 36.4mm in diameter.

Brecciated Describes rock made up of angularly broken or fractured rock generally

indicating a fault plane.

BRGM An acronym for Bureau de Recherches Géologiques et Minières, a French

mineral exploration company.

Brine Water with a strong concentration of salt.

C The abbreviation of the temperature measurement degree Celsius (also

called Centigrade).

Co The chemical symbol for the metallic element Cobalt.

cm An abbreviation for centimetre.

Cu The chemical symbol for the metallic element copper.

CuOx Copper in the oxide form, generally soluble in dilute sulfuric acid.

Carbonates A rock made up mainly of calcium (rarely magnesium) and carbon dioxide

Carrollite A rare mineral that is made up of cobalt, copper and sulfur.

Cell A term applied to the three dimensional volume used in the mathematical
modelling of ore bodies by computer techniques.

Chalcocite A mineral that is made up of copper (up to 80%), and sulfur.

Chalcopyrite A mineral that is made up of copper (up to 35%), iron and sulfur.

Chrysocolla A mineral that is made up of copper (up to 36%), silica and water, generally
formed in the weathered part of a copper ore body.

Clastic A rock made up of other rock fragments from distant locations.

Conglomerate A rock made up of various size particles from small pebbles to large
boulders and other rock fragments, cemented together.

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 Cuprous Copper in ionic state of one missing electron.

Cut-off The minimum concentration (grade) of the valuable component in a mass of

rock that will produce sufficient revenue to pay for the cost of mining,
processing and marketing.

DDH Diamond drill hole.

Datamine A proprietary computer program developed to model, view, analyse and

report on geological and mining data.

DevMin DevMin Pty Limited, a geological and mining consulting company based in
Perth, Western Australia.

Diamond drill hole A hole drilled in the ground using a method where a diamond tipped tube is
used to recover a cylinder of rock for geological examination and analysis.

Dilution A term used to describe the waste or non-economic materials included when
mining ore.

Dip The angle that a structural surface makes with the horizontal.

Disconformities An unconformity between two parallel strata.

Disseminated Ore carrying fine particles, usually sulfides scattered throughout the rock.

Dol-arenites Dolomite rock consisting of sand size grains.

Dolomite A mineral containing calcium, magnesium and carbonate.

Domain A term used mainly in ore resource estimation or geotechnical calculations

to describe a region of a geological model with similar physical or chemical
characteristics.

DRC An abbreviation for Democratic Republic of Congo.

DTM Digital terrain model, a mathematical way of representing a surface.

E Easting coordinate.

Epigenetic A geological process relating to a mineral deposit of origin later than that of
the enclosing rocks.

Excavator A large machine used in the digging and loading of rock into trucks in an
open pit mine.

Ferric Iron in an ionic state of three missing electrons.

Flotation A widely used industrial process used to concentrate valuable minerals after
mining that treats finely ground rock in a water based pulp with chemicals
that allow them to float to the surface where they are recovered in
preference to waste or gangue minerals which sink.

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 Fluvio A description applied to the moving of material by streams of water.

Footwall A generic term used to describe the rock mass below a dipping ore body.

Ga Billion years.

Gangue The valueless rock or mineral aggregates in an ore.

Geostatistics A mathematical method based on geological spatial knowledge of grade

distributions used to estimate grades in a systematic way.

g/t An abbreviation for grams per tonne.

Glacial Pertaining to or produced from the action of a glacier.

HC1 Chemical formula for Hydrochloric Acid.

HC1O4 Chemical formula for Perchloric Acid.

HF Chemical formula for Hydrofloric Acid.

HMS Abbreviation for heavy media separation, a mineral processing method that
uses high density fluids or suspensions to separate valuable minerals from
waste or gangue by exploiting differences in the specific gravity of
minerals.

HNO3 Chemical formula for Nitric Acid.

H2SO4 Chemical formula for Sufuric Acid.

HQ The size of a diamond drill hole that produces a cylinder of rock of

approximately 63.5 mm in diameter.

Hanging wall A generic term used to describe the rock mass above a dipping ore body.

Hydrothermal A geological process that occurs as a result of high temperature water from
mainly volcanic activity that alters the minerals in rocks and can lead to
concentrations of valuable minerals.

Hypogene A geological process that occurs well below the surface that can result in
increased concentrations of valuable minerals.

ICP Inductively Coupled Plasma, an analytical technique for determining metal

content.

ID² Inverse Squared Distance (method of estimating grades by mathematically

weighting samples based on their distance away from the estimation point).

IML An abbreviation for Independent Metallurgical Laboratories Pty Ltd, a Perth

based metallurgical laboratory.

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 IRR An abbreviation of the financial measure, Internal Rate of Return.

JORC An acronym for Joint Ore Reserve Committee, the Australian committee
formed by the Australian Stock Exchange and Australasian Institute of
Mining and Metallurgy responsible for the regulatory enforceable standards
for the Code of Practice for the reporting of mineral resources and reserves.

kg Kilogram.

Kriging A term applied to the process of estimating grades in a systematic way

within a geometric model of a mineralized zone, by a means of interpolation
that minimizes the estimation error.

Kt An abbreviation for Thousand of tonnes.

Kurtosis Measure of peakedness or flatness of the graphical representation of a

statistical distribution.

Lattice The arrangement of atoms in a systematic way within a mineral.

lb An abbreviation for the weight measure pound.

Log An abbreviation for natural logarithm to the base 10.

m An abbreviation for metre.

m% An abbreviation for metre percentage (obtained by multiplying metres by %

of assay value).

m3 Cubic metre.

MDM The acronym for Metallurgical Design and Management (Pty) Ltd. A
metallurgical consulting company based in South Africa with a branch in
Perth, Western Australia.

Mm The measurement millimetre.

MN Magnetic North.

MS The acronym for Microsoft.

Mt Million tonnes.

Mtpa Million tonnes per annum.

Malachite A mineral containing copper (up to 57%), carbonate and water found
mainly in the weathered zone of a copper ore body.

Massive A term used to describe a large occurrence of a pure mineral species, often
with no structure.

Metamorphism The geological process of altering the physical and chemical properties of
rock mineral by the combined effects of heat and pressure.

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 MilawaTM A registered computer algorithm which is part of Whittle Four-X that assists
in the planning of the sequence of extraction of an open pit mine.

Mineralization Minerals of possible economic value or the description of the process by

which the concentration of valuable minerals occurs.

N Northing Coordinate.

Na2S Chemical formula for Sodium Sufide.

NI-43-101 National Instrument 43-101 Standards of Disclosure for Mineral Projects.

February, 2001.

NPV The economic measure Net Present Value.

NQ The size of a diamond drill hole that produces a cylinder of rock of

approximately 47.6 mm in diameter.

Nugget The term applied to a high concentration of a particular element, usually

gold.

Oolitic A geological term describing a rock generally made up by carbonate

minerals in the form of sand to small pebble sizes spheres.

Ordinary Kriging The kriging process applied without the application of addition
mathematical processes that apply conditions or simulations.

Ore A natural aggregate of one or more minerals which, at a particular time and
place, may be mined and sold at a profit or from which some part may be
profitably separated.

Pb The chemical symbol for the metallic element lead.

Perimeter blasting A blasting method used in mining, where the perimeter (usually an open pit
boundary but some times around ore zones) is more intensively drilled and
where lower quantities of explosives are used in order to minimize damage
or dilution to the remaining walls.

pH The scientific shorthand for Hydrogen ion potential, generally a measure of

the acidity or alkalinity.

Plunge The term describing the angle to the horizontal by which a geological
feature, such as a fold axis or ore body is measured.

ppm Parts per million (same as grams per tonne).

PQ The size of a diamond drill hole that produces a cylinder of rock of

approximately 85 mm in diameter.

Pyrite A mineral consisting of iron and sulfur.

Pyroclastics A rock made up from material ejected from a volcano.

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 Q Quarter (usually with suffix like 1, 2 etc denoting Quarter 1, Quarter 2 etc)

RC The abbreviation for the widely used drilling technique called Reverse
Circulation by which high pressure compressed air is used to recover drill
sample via the inside of the drill rods, thereby avoiding contamination and
maximizing recovery of the rock sample.

Recovery A measure in percentage terms of the efficiency of a process, usually

metallurgical, in gathering the valuable minerals from an ore. The measure
is made against the total amount of valuable mineral present in the ore.

Reserve The term for the economic quantities and grade of valuable materials as
strictly applied in compliance with the definition in the National Instrument
43-101.

Resource The term for the estimate of the quantities and grade of valuable materials
but with no economic considerations as strictly applied in compliance with
the definition in the National Instrument 43-101.

RL Reduced Level (same as elevation).

RMWI Rod Mill Work Index, a measure used in determining the amount of energy
required to grind rock to a particular size.

ROM Run of Mine, a description applied to the physical characteristics of ore

(including dilution) as presented to the processing plant.

S Southing Coordinate.

SO2 Chemical formula for Sulfur Dioxide.

Sandstone A rock consisting of sand size grains, generally of the mineral quartz.

Selenide A general name for minerals or chemical compounds containing the

element selnium.

Silica The term applied to the compound of silicon and oxygen, generally
occurring in the form of mineral called quartz.

Silicification The process of pervasively altering a rock by the introduction of silica

mainly during hydrothermal processes.

Sill A horizontal or very flat lying intrusive igneous rock. Also, a term used in
describing parts of a semivariogram.

Snowden Snowden Mining Industry Consultants Pty Ltd, and Australian geological
and mining consultancy.

Sphalerite A mineral consisting of zinc (up to 56%), sulphur and usually some iron.

Stockpile A mound or pile of material.

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 Strings A term used by SURPAC, applied to a line drawn within the program that
outlines or describes a shape of an object or interpretation.

Stratigraphy The science of rock strata.

SURPAC A proprietary computer program developed to model, view, analyse and

report on geological and mining data.

Tennantite A complex mineral of copper (up to 30% to 53%), arsenic, iron and sulfur.
May contain significant amounts of silver, antimony and bismuth.

TN True North.

UCS Unconfined Compressive Strength, a rock mechanics term.

US United States (of America).

Variograms A graphical representation of the estimation error with respect to distance

from an estimation point.

Variography The process of determining variograms.

Vein A single continuous planar occurrence of a suite of minerals, generally

valuable, introduced into pre-existing rock mass.

W Westing Coordinate.

Whittle Four -X A proprietary computer program developed on the basis of the Lersch
Grossman theory, used to determine the optimal economic outcome for a
mining operation (generally open pit) by considering revenue from ore
mined versus costs, in three dimensional space and time.

X Multiplication symbol.

Zn The chemical symbol for the metallic element zinc.

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Item 3. SUMMARY

The Dikulushi copper silver-mine is located in the Katanga Province of the Democratic Republic of Congo
(DRC). The project is 90% owned and operated by Anvil Mining Limited (Anvil). Dikulushi was
commissioned as an open pit mine in October 2002 with run-of-mine ore delivered to an on-site Heavy
Media Separation (HMS) concentrator at the rate of 250,000 tonnes of ore per year. Upgrade of the plant in
2004, with the inclusion of a flotation circuit and ball mill increased the throughput to 350,000 tonnes per
year. The addition of a second ball mill in 2005 increased the capacity of the plant to its current level of
520,000 tonnes of ore per year. The copper-silver concentrate is subsequently transported by barge across
nearby Lake Moero into Zambia and then by road to smelters in South Africa and Namibia and by sea to
smelters of offshore Africa.

Dikulushi is a hydrothermal vein deposit of copper and silver hosted in Proterozoic sediments of the Upper
Kundelungu. Two ore bodies are mined in the Dikulushi open pit. The main “Footwall” zone is a 240m
long, 2-25m thick vein of semi-massive chalcocite (and/or bornite), which strikes east-northeast and dips to
the southeast at about 65º. The second mineralized zone (the “Hanging Wall” zone) is a broad zone (up to
50m wide) of discontinuous, steeply dipping, veins/veinlets/disseminations of chalcocite. This strikes at an
angle of 20º to the Footwall zone, which it intersects in the eastern part of the pit.

During 2005 the Dikulushi mine mined 382,344 tonnes at a grade of 5.34% copper and 158 s/t silver. The
treatment plant treated 410,374 tonnes of ore at a grade of 5.1% copper and 149 s/t silver and produced
17,816 tonnes of copper and 1,700,000 ounces of silver at a cash cost of $0.88/lb of copper after silver
credits.

The Open Pit Mine Plan in this report has adopted wall angles for pit optimisation and mine design
recommended by Anvil’s geotechnical consultant, Australian Mining Consultants (AMC). The final pit
designs have been reviewed and deemed acceptable by AMC.

Given the extremely high grade of the Dikulushi deposit, mining is selective using small scale mining
equipment which aims to minimize mining losses. Ore loading is carried out only during daylight under
constant supervision of ore spotters. With the sub-vertical geometry, width, continuity and ability to
visually differentiate ore zones, minimal dilution is experienced. The reserve estimate has adopted a
conservative dilution factor of 15% for both copper and silver grades and 100% recovery of tonnes. At the
present throughput rate of 520,000 tonnes per year, Dikulushi is expected to support an open pit operation
for the next 2 years and extend the pit to a depth of 150m below surface.

This report has adopted constant metal prices of $3,142/tonne for copper and $5.50/oz for silver. Drill and
blast and earthmoving rates are based on the current mining and drilling contracts with MCK and historical
figures. Processing costs are based on the current mine forecast budget which in turn is based on actual
operating experience to date. Fixed costs are concurrent with actual operating experience and assume that
treatment plant throughput will be maintained at 520,000 tonnes per year. Concentrate transport and
smelting costs are based on charges and contracts presently in place to transport concentrate to smelters at
Tsumeb in Namibia and offshore of Africa via Durban.

The resource model was prepared in February 2006 by FinOre Mining Consultants (FinOre) using
Datamine software and the results of 153 diamond and RC drill holes carried out over four phases of
drilling, as summarised in the following table:

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 Company Period Type No. Holes Metres Sequence
BRGM 1974-1981 DDH 48 5,226 DIK1-47
1997 DDH 18 2,115 DDH1-14, DR15, 19, 20, 38
RC 26 2,305 DRC15-40
2000 RC 22 786 DRC043-064
Anvil 2003 DDH 4 885 DDH16-19
RC 21 1,768 DRC065-085
2004 RC/DDH 14 414/3,811 DDH020-035 (no 032)
2005-2006 DDH 14* 5,000* DDD38-46 (to date)
(* planned)
Table 1: Drilling Campaigns

Geological domains and ore envelopes were interpreted by Anvil geologists based at the Dikulushi mine
site. The Mineral Resource estimate is based on geologically controlled interpretations of copper
mineralisation zones, defined by drill intersections, and augmented by information from open pit mining.
Grade values have been interpolated, using Ordinary Kriging, into a 3D cell model, constrained by
wireframes of the interpretation; a check inverse distance square (IDS) model was also generated. High
grade cuts of between 30% and 45% Cu and 800 and 1,600 g/t Ag have been differentially applied to the
mineralised domains. Resource tonnages and grades have been reported using a 1.5% Cu cut-off and to a
depth of 200 metres below surface.

The remaining Dikulushi copper and silver resource, as at December 31, 2005 summarised as follows:

Resource Cu Ag Cu metal Ag metal

Tonnes
Category (%) (g/t) (tonnes) (Moz)
Measured 60,000 7.03 198 4,400 0.39
Indicated 751,000 8.37 245 62,900 5.91
Meas. + Ind. 811,000 8.27 241 67,300 6.30

Inferred 516,000 7.31 155 37,700 2.57

Table 2: Remaining Resource Estimates December 2005

(1.5%Cu cut-off: Classification Categories)

The open pit Mineral Reserve is published in Table 3 below and is based on the FinOre block model
reported as at 31st December 2005. The current open pit design is that used in the NI43-101 Technical
Report pit 2004 having a total depth of 150 metres below surface (850mRL).

Mineral Reserve Cu Ag Cu metal Ag metal

Tonnes
Category (%) (g/t) (tonnes) (Moz)
Proved 60,000 6.12 169 3,700 0.33
Probable 453,,000 7.98 252 36,200 3.67
Total 513,000 7.76 243 39,900 4.00

Table 3: Dikulushi Open Pit Reserves at December 31, 2005

The cash flow analysis developed by the life-of-mine simulation sustaining capital estimates provided by
Anvil. Additional capital has been added to upgrade the port facilities on Lake Moero and improve

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infrastructure on the mine site. However, the cash flow analysis is a simplistic model developed for mine
planning purposes and excludes depreciation, finance charges and taxation.
The life-of-mine simulation was carried out to prepare the mine schedule in quarterly time increments. The
objectives of the mine schedule were to:
‰ Supply run-of-mine ore at a constant rate to allow a blend with the stockpiles producing a constant
grade.
‰ Provide a balanced mining schedule.
‰ Ensure mining capacity (total rock movement) did not exceed 250,000 BCM per month.
The Dikulushi open pit operation is expected to achieve a positive net cash flow of around US$57 million
(see Table 27). Life-of-mine capital costs are estimated to be US$3.2 million. This includes provision for
infrastructure upgrades and sustaining capital. With an annual discount rate of 10%, the project has an
NPV of US$49.1 million.

Average cash costs, excluding capital, are expected to be US$0.97/lb of copper produced. With silver
credits, cash costs will fall to US$0.75/lb keeping the mine in the lower quartile of producers. This clearly
illustrates the important contribution of silver in the shipped concentrate. Over the life of the project, at
US$5.50/oz, silver revenues are expected to exceed US$22.3 million from silver output of nearly 4.5
million ounces. Indeed silver revenue should more than pay for the mining cost. Capital and sustaining
capital account for around US$0.03/lb.

The current mine life of the 150 metre deep open cut and remaining stockpiles is to the end of 2007. The
ore body is open ended below the pit with drill holes showing the ore body extends to at least a depth of
300 metres. The current drilling programme is designed to infill areas down to 300 metres and test the
orebody to a depth of 400 metres. The drilling programme and the Stage III underground mine design will
be completed during the first half of 2006.

Item 4. INTRODUCTION

This report presents the latest available technical information on the Dikulushi Mine, located in the
Democratic Republic of Congo. It has been prepared in accordance with the requirements of National
Instrument 43-101 (“Standards of Disclosure for Mineral Projects).

Data and information on the Dikulushi deposit and mining operation that have not changed and were
previously reported in Arnold and Journet (2004a) are not repeated, in accordance with instructions issued
under Form 43-101F1, which relate to the required contents of a technical report.

This report has been prepared by a team of people with the following responsibilities:-

Nick Franey, VP Exploration, Anvil Mining Geology, drilling & sampling

Malcolm Hillbeck, VP Operations, Anvil Mining Mining, production, ore processing and
reserves
Gerry Fahey, Director, FinOre Mining Consultants Resource model & statement
(A Division of CSA Australia Pty Ltd)

All of the above authors are qualified persons, in terms of the requirements of NI 43-101, and have relevant
experience of the mineral deposit and mining operation described in this report. Nick Franey has a BSc
(Hons) in Mining Geology from Leicester University, UK (1980) and an MSc in Mineral Exploration from
Rhodes University, South Africa (1986), and is a full member of the Australian Institute of Geoscientists.
Malcolm Hillbeck has BSc (Hons) in Mining from Birmingham University and is a member of the
Australian Institute of Mining and Metallurgy, and Gerry Fahey has a BSc (Hons) in Geology from the
National University of Ireland (1975) and is a full member of the Australasian Institute of Mining and
Metallurgy and the Australian Institute of Geoscientists.

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Item 5. RELIANCE ON OTHER EXPERTS

There are no disclaimers in relation to the preparation of this report.

Item 6. PROPERTY DESCRIPTION AND LOCATION

The Dikulushi Mine is located in the Province of Katanga in the southeast part of the Democratic Republic
of Congo (DRC), 400km north of the provincial capital Lubumbashi, at latitude 08º53’S and longitude
28º16’E (Fig. 1).

Fig 1: Location of Dikulushi Mine

The mineral rights of the Dikulushi project originally comprised four Zones d’Exclusive Recherches
(ZER), covering a total area of approximately 14,865 km2, all of which were held under the Dikulushi
Mining Convention, signed with the Government of the Democratic Republic of Congo on January 31,
1998 and ratified by Presidential Decree on February 27, 1998. There were and continue to be no
historical environmental liabilities associated with the project because it is a greenfields site, and, under the
terms of the Mining Convention, the company is exempt from annual land rent fees.

After promulgation of the new Mining Code on the 11th July 2002, Anvil Mining converted the original
four ZERs to a single Exploitation Permit (PE) of 40.77 km2, over the Dikulushi Mine itself, and 38
Exploration Permits (Permis de Recherches, PR) of 14,824Km2 over the surrounding area, but the project

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continues to enjoy the terms of the original Mining Convention. However, in order to conform to the new
Mining Code as far as possible, which obliges permit holders to drop ground on a regular schedule, Anvil
Mining relinquished one whole PR and various parts of six others on the 2nd November 2004. At present,
22 of the remaining 37 PRs are inaccessible for security reasons and “force majeure” was declared and
acknowledged by the government in May, 2005 (Fig. 2).

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 Fig 2: Mineral licenses of the Dikulushi Project. Note PE606,
which covers the mine, and the location of the original ZERs.

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Mining operations at Dikulushi are currently conducted under the PE issued by Ministerial Decree. This
guarantees the sole and exclusive rights to the benefit of the holding company for 20 years. The holding
company is Anvil Mining Congo SARL, which is 90% owned by Anvil Mining NL. The remaining 10%
equity is held in trust by Anvil for the economic, social and infrastructure development in the region of
Dikulushi. Anvil Mining NL has assumed a responsibility to assist in ensuring that the local community
shares appropriately in the benefits emanating from the Dikulushi Mining Convention.

This report presents technical information on the Dikulushi Mine PE alone.

Item 7. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND

PHYSIOGRAPHY

The accessibility, climate, local resources, infrastructure and physiography are all described in Arnold and
Journet (2004a).

Since then, a 1,200m long dirt airstrip has been constructed at Dikulushi Mine (completed in October,
2005) and personnel can now be flown directly to the mine site by charter flights from Lubumbashi (flight
time approximately 1 hour).

The Dikulushi concentrates are still exported from the DRC via a barge across Lake Moero to Zambia, for
onward trucking to Namibia and South Africa.

Item 8. HISTORY

The history of the Dikulushi Mine up to the end of 2003 is described in Arnold and Journet (2004a).

An open pit mine was commissioned at Dikulushi in October 2002 with run-of-mine ore delivered to an on-
site HMS concentrator at the rate of 250,000 tonnes per year. The copper-silver concentrate is
subsequently transported by barge across nearby Lake Moero into Zambia and then by road to smelters in
South Africa and Namibia.

DevMin completed an open pit study in October 2002 which used a resource model prepared for the Signet
Engineering prefeasibility study, Munro (1998). Since then, Anvil has completed a further 47 drill holes
comprising 43 RC holes and 4 DDH holes. The most recent drilling, conducted since the mine was
commissioned, is made up of 21 RC holes and 4 DDH holes. The DDH were drilled to confirm deeper
high grade mineralisation and to provide geotechnical information. During the first 15 months of
operation, the geology within the current open pit has been extensively mapped and, with results of the
recent drilling, has resulted in a re-interpretation of the mineralised envelope at Dikulushi.

DevMin were approached by Anvil to undertake the Open Pit Mine Plan study to estimate the remaining
open pit reserves and prepare an open pit life-of-mine schedule for the Dikulushi Mine. The study was
initiated in August 2003 when a preliminary pit optimisation program was undertaken using Anvil’s recent
in-house resource model. The initial program was largely an update of previous work carried out by
DevMin and showed that with current economic parameters, the feasible depth for open pit mining at
Dikulushi could potentially extend to 150m below surface. The earlier work, carried out in 2002 prior to
the mine being commissioned, had stopped the pit at 130m depth with remaining mineralisation proposed
to be exploited by an underground mine. Taking cognisance of capital investment to develop the
underground mine and its remote location, Anvil has subsequently decided to push the open pit to its
maximum economic depth.

The mining study was put on hold while DevMin carried out a technical audit of the in-house resource
model. As a result of early findings, Anvil subsequently requested DevMin construct an alternative model.

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The Open Pit Mine Plan described in this report has adopted the new DevMin resource model which was
completed in early September 2003. This produced a pit to a depth of 150 metres.

Further metallurgical work was carried out in 2003 resulting in the installation of a ball mill and flotation
plant in mid 2004 increasing the throughput to 350,000 tonnes per year. A second ball mill was installed in
June 2005 with a further increase in throughput to 520,000 tonnes. This is the current capacity of the
treatment plant and the mining fleet has been increased to provide the appropriate feed for the treatment
plant.

Costs and revenues throughout this study are in US dollars and metal prices are assumed to be constant
over the remaining life of the project to the end of 2007:

• Copper: $3,142/tonne (or $1.43/lb)

• Silver: $5.50/oz

Item 9. GEOLOGICAL SETTING

9.1 Regional Geology

The Lufilian (or Kundelungu) Foreland (Fig. 3) in the southwest of the Democratic Republic of Congo
(DRC) represents a triangular-shaped area to the north of the Lufilian arc. It is bounded to the west by the
Mesoproterozoic (1.6-1.0 Ga) Kibaran Mobile Belt and to the east by the Palaeoproterozoic (2.5-1.6 Ga)
Bengweulan Massif. The foreland extends up to Lake Tanganyika, where the Katangan rocks lay
discordantly on Palaeoproterozoic magmatic rocks. Recent work on the Zambian part of the western arm
of the Lufilian Arc identified the arctuate 'Western Foreland Thrust' as the outermost thrust of the foreland
fold-and-thrust belt (Key et al., 2001). Therefore, the mildly deformed Katangan sediments north of this
thrust can be regarded as a true foreland.

The Katangan Supergroup stratigraphy is presented in Table 4. The Dikulushi deposit is located within the
Kalule Group of the Upper Kundelungu, at the contact between the Kiaka Carbonates and the overlying
Mongwe Schists. In terms of regional structure, the deposit is located within the northeast-trending
Lumekete Fault Zone, where this intersects the northern margin of the Dikulushi Anticline (which, in turn,
is interpreted as a northern continuation of the major Kipako Anticline).

A number of sediment-hosted, stratiform, disseminated, and vein-style base metal deposits occur in the
foreland.

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 m-Approx
Super Group Group Formation Unit Lithology Mineralization
thickness
Plateaux Kilunga Lupili
Pink Arkose <200
Ks-3 Arkose

Interbedded red argillaceous

Kapenga Schists 350
sandstone and red argillates

Disseminated chalcocite and

Sonta Sandstone Red sandstone and quartzite 100 malachite at base of Sonta
Sandstone

Interbedded red argillaceous

Sampwe schists 300
sandstone and red argillates
Kiubo
Ks - 2.2
Ks - 2
Kyafwama -
Red sandstone 50
Kombo Sandstone

Interbedded red argillaceous

Lufila schists 150
Upper Kundelungu - Ks

sandstone and red argillates

Kiubo Sandstone Red sandstone 50

Argillaceous red sandstones Fault controlled Cu-Ag

Ks - 1.3 Mongwa Schists interbedded with argillates. <100 mineralisation at the
Minor Sandstone dolomite/ sandstone contact

Dikulushi
Interbedded pink, cross
Lubudi
bedded dol-arenites,with olitic <50
Dolomites
caps

Kanianga Sandstone - argillaceous and

<50
Kalule Sandstone weakly calcareous
Ks - 1 Kiaka
Carbonates Ks -
Pink intramicrite flakestones <50
1.2

Lusele Pink
Interbedded white/pink
Dolomites <50
carbonate muds and arenites

Zn-Pb mineralization at
Basal dolomite (BD) 4
contact with diamictite
Le Petit
Ks - 1.1 Diamictite <100
Conglomerate
Kundelungu Ki

Stratiform copper Kinkumbi,

Monwesi Monwesi Fluvio glacial sandstones <50m
Lower

Lufukwe anticline

Le Grand
Likasi Ki-1 Ki -0 1.1 Diamictite 500
Conglomerate
Mwashya Dolomitic shales and
Roan R R - 4.2 ?
R-4 sandstones

Table 4: Stratigraphy of the Dikulushi Region, showing location of known

mineralisation.

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 BM

KB

LF

LA

Fig. 3: Regional Geology of SE Katanga Province.

LA = Lufilian Arc; LF = Lufilian (Kundelungu) Foreland; KB = Kibaran Mobile Belt; BM = Benguelan Massif.

9.2 Local Geology

Two main lithostructural domains can be distinguished: (1) the regular sedimentary series, consisting of red
sandstones, siltstones and shales of the Mongwe Schist Unit (brown on Fig. 4), and (2) the mélange, a
chaotic formation that consists primarily of Kiaka Carbonate, with ‘exotic’ blocks which are interpreted to
be from lower statigraphical levels (pink on Fig. 4). Bedding within the Mongwe Schist Unit strikes N-S
and dips to the east at moderately to steeply angles (average 45º), although it is locally folded, especially
close to the melange contact.

Two ore bodies are mined in the Dikulushi open pit (blue on Fig. 4). The main “Footwall” zone is a 240m
long, 2-25m thick vein of semi-massive chalcocite (and/or bornite), which strikes east-northeast and dips to
the southeast at about 65º. The second mineralized zone (the “Hanging Wall” zone) is not so well defined.
It is a broad zone (up to 50m wide) of discontinuous, steeply dipping, veins/veinlets/disseminations of

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chalcocite, which strikes at an angle of 20º to the Footwall zone, which it intersects in the eastern part of
the pit.

Multiple fracture sets that post-date folding are present in the more competent lithologies: EW-trending –
subvertical; ENE-trending – moderately N-dipping; NW-trending – moderately S-dipping; NE-trending –
subvertical.

“Footwall” zone

“Hanging Wall” zone

Fig. 4: Geology of Dikulushi Open Pit (see text for explanation)

Item 10. DEPOSIT TYPES

The Dikulushi copper-silver deposit is a low temperature, hypogene vein of massive to semi-massive
sulphide, which is thought to have formed during or after deformation of the Lufilian Orogeny. It is not
typical of Central African Copperbelt deposits, which are generally stratiform, disseminated in nature, and
thought to have formed during late-diagenesis of their host sediments.

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The controls on mineralization are not fully understood as yet, although it is clear that regional and local
structures have played an important role, (a) to allow the ingress of mineralising fluids into the stratigraphic
sequence and (b) to provide the trap sites for precipitation of sulphides (GF Consult, 2003; Sintubin et al,
2004). It is speculated, though not yet proven, that the carbonate may also have played a role in providing
a chemical control on ore deposition.

The exact age of mineralisation is not known.

Item 11. MINERALIZATION

The mineralization at Dikulushi can be broken into three distinct types:-

• Massive chalcocite is the most common mineralisation, occurring along 75% of the strike length of
the footwall orebody from east to west. Grades of over 20% Cu are common and the silver ratio is
much higher than the ore body average of 30g/t Ag per 1% Cu. Massive chalcocite can also be found
in discrete fault zones in the hanging wall ore zone.

• Massive Bornite is found in the western end of the footwall ore body, against the contact with the
Kiaka Carbonates. The mineralisation is silver poor (<15g/t Ag per 1% Cu), but the more massive
nature of the bornite results in higher copper grades (~30%Cu) - compared to chalcocite
mineralisation. Discrete bornite veins have been found within the Kiaka Carbonates and are rare in
the hangingwall ore zone.

• Disseminated Chalcocite is found throughout the deposit; it occurs as disseminated "blebby"

chalcocite and as thin 1mm disseminated veins.

Gangue minerals associated with the deposit include barite, calcite, quartz and siderite.

The top 30m of the deposit has been subject to superficial weathering, dissolution and oxidation.
Malachite, azurite and chrysocolla replace the chalcocite in the oxidised zone, although significant
chalcocite does occur relatively close to the surface. Indeed, the discovery outcrop was comprised of
massive chalcocite. Minor malachite, chysocolla and azurite are also present at the current drilling depths
of +350m.

Item 12. EXPLORATION

Since discovery in the early 20th century, and subsequent detailed assessment by the French Bureau de
Recherches Géologique at Minières (BRGM), exploration at Dikulushi has essentially involved several
drilling campaigns, which are described in the following section.

Item 13. DRILLING

Several phases of drilling have been carried out on the Dikulushi deposit beginning with the BRGM in the
1970's and 1980's. The BRGM completed 48 DDH holes (5,223m), of which 42 intersected the ore body.
Anvil has carried out several campaigns since 1997, the details of which are given in Table 5.

Diamond drilling has principally been of HQ size core, but with some holes reduced to NQ size. Core
orientation has been by way of spear point marking at the end of suitable core breaks. On recovering the
core from the hole it is orientated, where possible, and then logged for geotechnical defects, core recovery
and geology.

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The 1998 prefeasibility model was constructed using the results of the diamond core drilling from the
1974-1981 BRGM and the results of the 1997 diamond and RC programs of Anvil. The data collection
procedures (drilling, sampling, sample preparation, assaying and database compilation) are described in
Anvil (1998) and Munro (1998).

Table 5: DRILLING CAMPAIGNS

Company Period Type No. Holes Metres Sequence
BRGM 1974-1981 DDH 48 5,226 DIK1-47
1997 DDH 18 2,115 DDH1-14, DR15, 19, 20, 38
RC 26 2,305 DRC15-40
2000 RC 22 786 DRC043-064
Anvil 2003 DDH 4 885 DDH16-19
RC 21 1,768 DRC065-085
2004 RC/DDH 14 414/3,811 DDH020-035 (no 032)
2005-2006 DDH 14* 5,000* DDD38-46 (to date)
(* planned)

13.1 Anvil Programme 1997

In 1997 Anvil carried out an exploration program at Dikulushi, which aimed at confirming the BRGM
results and allow estimation of mineral resources to the standard of the Australian JORC Code. A total of
40 drill holes were completed using two drill rigs between September and October 1997. All holes were
orientated at 60º towards an azimuth of 340º (grid north), and all holes were in the area previously drilled
by the BRGM. These resources and reserves were subsequently reviewed in the light of the requirements
of NI-43-101.

A total of 18 HQ and NQ DDH holes (DDH1-14 and DDH15, 19, 20, 38), including 4 with reverse
circulation (RC) pre-collars were completed in the 1997 diamond drilling program. Mineralisation was
intersected in 17 of the 18 holes. Down hole camera surveys were completed at least every 12 metres in the
DDH holes and the results showed the DDH remained essentially straight with a maximum deflection of 2º
in declination and 4º in azimuth. A core orientation spear was also run after every core run (usually 3
metres). On recovering the core, it was orientated, when possible, and then logged for geotechnical defects,
core recovery and geology. Core recovery averaged about 90%, except for minor soil, sandy and cavernous
zones. Recoveries in mineralized zones are reported to have been about 90%.

A total of 22 RC drill holes (DRC16-18, 21-37, 39, and 40) were completed during the 1997 program using
a booster compressor, which was essential due to large water inflows and broken ground. Mineralization
was intersected in 19 of the 22 RC holes. None of the wholly RC drilled holes was down hole surveyed.
Four RC pre-collared holes were surveyed throughout their length but due to the presence of steel casing,
only the cored section returned valid azimuth readings. The dip variations in these holes were minor,
however the cored sections showed consistent anticlockwise azimuth rotation of between 9-18º.
Consequently, an average azimuth correction factor of 3.2º anti-clockwise deviation per 20 metre downhole
has been entered into the RC drill hole database to compensate for this interpreted drill hole rotation.

Of the holes drilled during the 1997 program, 11 DDH holes and 6 RC drill holes were specifically collared
to twin earlier BRGM DDH holes.

Anvil also cleaned out and re-sampled six trenches and four test pits that were originally dug and sampled
by the BRGM. A total of 90 channel samples and 18 rock-chip samples (pits) were taken from 191 metres
of trenching as well as 18 rock chip samples from pits. Orientation soil and stream sampling and other
regional reconnaissance sampling and exploration were also completed by Anvil in 1997.

13.2 Anvil Programmes 2002 & 2003

The drilling programmes carried out in 2002 and 2003 were partly undertaken in response to the
observation in Munro (1998) that as the “upper 30 metres of the deposit is poorly defined, infill pattern

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diamond drilling is required”, along with the need to clarify the extent of the mineralisation and to sterilise
certain areas prior to the commencement of mining.

The diamond core drilling procedures used during the 2002 and 2003 programs were compatible with those
of the 1997 Anvil drilling program. A Stanley Drilling Longyear 38 Rig was used in the 2002-03
programs. To avoid the need to reduce core size at depth to NQ, the first 60m was drilled using PQ
diameter, followed by HQ. This practice ensures that a good volume of mineralised intercept core is
available for both assay and archive.

Core orientation procedures were routinely conducted, although drilling conditions at times limited
successful achievement of orientation results. Core recoveries across the mineralised horizons typically
exceeded 95%.

Regrettably, all archived core from the 2002 and 1997 campaigns was rendered useless after core trays
were overturned by army units during the latter stages of the civil war. Fortunately, photographs of this
core, taken for geotechnical purposes, are still available.

13.3 Anvil Programme 2004

The objective of the 2004 programme was to extend the resource down to 300m below surface, and to
provide data for a pre-feasibility study on an underground mine. Fourteen holes were pre-collared with RC
(414m) and drilled to a maximum ore intercept depth of 280m below surface (3,811m).

The diamond core drilling procedures used during the 2004 program were largely compatible with those of
the previous two programs, although core recoveries were not as good due to technical problems with the
rig. Stanley Drilling was the contractor for both the RC and diamond drilling.

Down-hole surveys were carried out at 50m intervals using an Eastman camera. Core orientation was
attempted using the spear method, but poor ground conditions rendered the data to be of little practical use.

13.4 Anvil Programme 2005/6

The objective of the current programme is to increase our confidence in the geological model and upgrade
the resource classifications to a depth of 400m below surface, for a possible future underground mining
operation. Diamond drill holes from this survey are identified with the prefix “DDD”.

The programme is being drilled with one of Anvil’s own Boart Longyear LF90 rigs, managed by Wallis
Drilling. The holes are all being drilled to 45m with HQ (to which depth the holes are cased) and drilling
continues with NQ. Drilling procedures have been upgraded following recommendations made by Arnold
(2004b), and have included reducing the down-hole survey interval (to approximately 30m) and
establishing the daily maintenance of an up-to-date digital database of geological and geotechnical logs,
survey data, and QA/QC data.

Each hole is being surveyed every 30-40m, using a single shot Tropari tool. Drilling procedures are similar
to those of the 2004 programme.

The programme is currently underway, with eight holes completed to date, but no sample assays have been
reported as yet.

Item 14. SAMPLING METHOD & APPROACH

The sampling procedures for RC and diamond drilling at Dikulushi are described below. The establishment
of these procedures began during the first field program in 1997, when the Dikulushi deposit was first
drilled by Anvil. The procedures undergo minor modifications from time to time, as and when changes are
deemed necessary.

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14.1 Survey Control

The relationships between the Dikulushi Mine Grid and magnetic and true north orientations are as follows:

Grid North = MN - 20.2˚

Grid North = TN - 22.0˚

14.1.1 Collar pickups

The collar positions of the majority of RC and DDH holes in all of the Anvil campaigns were surveyed by
site survey teams. A limited number of drill holes appear to have retained their planned coordinates in the
database.

A visual comparison of the drill hole collars with the surveyed pre-mining topography indicates
discrepancies of up to 0.5m. However, the more recent drill holes (excluding those clearly collared
following excavation) tend to correspond closely to topography.

14.1.2 Topography and pit surveys

Two sets of triangulated surface elevation models are relevant to this resource estimation:

i) the pre-mining topographic surface which is used to ‘trim’ the pre-mining cell model; and
ii) the pit pickup surface as at 31st July 2004, which is used to differentiate between mined and
remaining resources.

Both the topography and pit surveys were undertaken by the mine survey department, and are therefore
achieve the required accuracy for resource modelling purposes.

14.1.3 Downhole surveys

In the 1997 drilling campaign, downhole surveys were conducted at 12m intervals (Anvil, 1998). Such
detailed surveying was relaxed for the 2002, 2003 and 2004 diamond drilling campaigns to a maximum
interval of 50m. The survey interval has subsequently been reduced to approximately 30m for the latest
2005/6 drilling campaign on the recommendation of DevMin (2004b).

14.2 Density determinations

The evaluation of density data available from both the BRGM and Anvil 1997 campaigns is detailed in
both Anvil (1998) and Munro (1998). That work established a correlation between bulk density and copper
content to produce the following regression formula:

Density = 2.6 + 0.027*Cu%

This formula was used to model density in the Prefeasibility Model.

No density data has been collected since then, but a simpler, uniform density of 2.8t/m3 for copper
mineralised zones and 2.6+/m3 for waste has been adopted for the latest resource model.

Formal measurements of density from drill core will be undertaken during the current 2005/6 campaign. It
is proposed to take measurements for each ore intercept and at approximately 7m intervals in waste (one
sample per core tray).

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14.3 Oxidation

An evaluation of the relationship between oxidation (CuOx/Cu ratios) and depth below surface is
documented in detail in Anvil (1998). That evaluation was limited by the need to reject copper oxide
assays from several campaigns, due to recognition of sample oxidation during storage and transport.

14.4 Diamond Core Sampling and Handling Procedures

The procedures for core handling were first set up during the 1997 drilling program, which was Anvil’s
first drilling program at Dikulushi. The following sections describe the field procedures adopted for the
handling of drill core during that program since these procedures are still being followed.

14.4.1 Recovery of Drill Core

Drillers remove the core (HQ & NQ size) from the core barrel and place it in core trays provided by Anvil.
Drillers are instructed to never break any solid pieces of core. At the end of each run (i.e. each time the
barrel was pulled from the hole) the bottom hole depth is recorded, marked with depth tags and core sample
pumped out from bottom up. During the previous programmes, core orientation was attempted by spear,
but ground conditions resulted in poor data. No orientations are being conducted during the current
campaign. The site geologist regularly checks depths provided by drillers. Full core trays, after being
marked with hole number and “from and to” depths, are moved to the core reception area within the
Dikulushi Exploration Camp.

14.4.2 Logging of Drill Core

Using an angle bar support, the site geologist then reconstructs the core as best as possible. Any breaks
made during handling of the core are specially marked so they are not confused with natural breaks being
logged for geotechnical purposes. After reconstruction, the core is oriented where possible and marked with
downhole direction and metre points. Then geotechnical logging, core recovery logging and first-pass
geological logging is completed. (Note, by convention, any core loss is presumed to come from the start of
the run). Core is marked up for splitting into two, and, where intended for sampling, one half is marked to
be cut into quarters. Core is then cut and all pieces replaced in the tray, with due care and attention paid to
correct orientation.

In the 2005/6 drilling campaign, no core is being orientated. Half core samples are being sent for assay and
the sampling intervals are geologically controlled (to a minimum of 30cm).

14.4.3 Sampling of Drill Core

The site geologist completes geological logging, decides where samples are to be taken, records sample
numbers on log forms, selects the quarter core to be sampled and places the core into calico bags marked
with the sample number. The site geologist also completes sample tag book butts with sample details and
places the correctly numbered sample tag in the sample bag.

The core is sawn in half and then, where sampled, is halved again, with the resulting quarter core submitted
for assay. Assay samples are generally taken from whole metre intervals. Minimum sample intervals of
30cm have been adopted for the 2005/6 program.

During the first drilling program in 1997, since the geological staff on site had no prior experience of this
mineralization style or in relating grades to the appearance of the core, samples were generally taken from
regular metre intervals. Samples were taken from every interval in which copper was observed (or
suspected) and for at least one metre either side. As local skill levels and our understanding of the geology
have improved, sampling has become more geologically controlled for the more recent drilling campaigns.

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14.4.4 Dispatch of Samples to the Laboratory

Individual samples from each hole are collected into hessian sacks, submission letters for the laboratory are
prepared, clearance documentation for DRC customs are prepared, and the samples with paperwork are
sent on to the laboratory.

For the 1997 program, samples were padlocked into metal or wooden trunks for airfreight to Johannesburg
via Lubumbashi. Time elapsed between drilling and samples arriving at the Johannesburg laboratory
ranged from 3 to 6 weeks.

For the 2002 and 2003 campaigns, samples were prepared and assayed at the on-site mine laboratory,
which had been set up by SGS.

For the 2004 campaign, half core samples were air-freighted to Genalysis in Perth.

For the 2005/6 drilling campaign, core samples are being shipped by road to [Link] (AHK) in Kitwe,
Zambia, for sample preparation, before being airfreighted to ALS Chemex in Johannesburg for analysis.

14.5 RC Sample Handling Procedure

The geologist logs the RC chips on site and collects a sieved, washed sample from each metre for storage in
clean plastic chip trays. Any copper minerals observed during the sampling are recorded and each metre
with observed or suspected copper content is sampled. Any section of a hole that is not sampled at one
metre intervals is composite-sampled, usually at four metre intervals.

With RC drilling, samples are collected for each metre drilled into a large plastic bag, marked with the hole
number and depth. Each metre sample comprises 30-40kg of drill chips (except for some top of hole
samples where recovery was significantly less). This large sample is split on site with a Jones Riffle Splitter
to a representative sample of about 4kg. This process usually involves three splits through the 50:50
splitter device provided by the drillers.

One to two kilograms is then collected from each sample by splitting the 4kg in half for the 1m samples, or
collecting 500g from each metre sample for the composites. With 5mm maximum chip size, at least 500g is
required to ensure representative samples. The geologist records sample numbers on the log and sample
tag booklet butts are filled out with hole and depth details. Samples are collected into calico bags marked
with sample numbers and sample tags are placed into the sample bags.

Samples from each hole are dispatched together in hessian sacks, along with relevant laboratory submission
and customs documentation. Similar procedures were followed for the dispatch of RC samples as have
been described for diamond core samples.

Item 15. SAMPLE PREPARATION, ANALYSIS & SECURITY

The procedures in place to provide secure storage for samples from all campaigns were and are considered
appropriate.

15.1. 1997 Campaign

Samples from Anvil’s 1997 drilling campaign were shipped primarily to Gold Labs Africa laboratories in
Johannesburg, South Africa, and to Australian Laboratory Services Pty Ltd (ALS), in Perth, Australia, for
QA/QC checks. All samples were analysed for Cu, Co, As and Ag. Cu and Co determinations were done
by digesting sample pulp in HClO4, HF, and HNO3 until dry, redissolving in HCl for dilution and mixing,
then reading metal content with an ICP. Iodide titrations were done as checks on samples with >10% Cu.

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Initially Ag and As was measured on the ICP after aqua regia (HCl and HNO3) digestion. The first Ag
assays received were thought to be low and some fire assay checks were done. This confirmed that when
there was high metal content in the sample (circa >8%) the digestion procedures understated values for Ag
content. Then Ag and As assays were tried using a separate HClO4 and HF, and HNO3 digestion and values
were found to be consistent with fire assay values. All samples were then assayed for Ag and As using the
HClO4, HF, and HNO3 digestion.

All samples with >1% Cu were analysed for Cu oxide content. The analysis involved taking 1g of sample,
adding 30ml of dilute H2SO4 (125g/l solution), which had been saturated with SO2, agitating for two hours,
filtering, washing residue off paper, diluting the liquor, and then assaying for Cu by ICP.

Anvil (1998) and Snowden (1998) document programmes of internal and inter-lab duplicate checks
undertaken by Anvil, and report a high degree of precision.

15.2. 2002 & 2003 Campaigns

At the commencement of operations in October 2002, Anvil contracted SGS Analabs of Perth to set up an
assay facility at the Dikulushi mine site, and all drilling samples from the 2002 and 2003 drilling
campaigns were prepared and assayed on site. The Dikulushi laboratory routinely calibrates assay
procedures using internal standards and procedures established for SGS Laboratories worldwide.
Standards, duplicates and blanks were inserted into batches at every 50 samples. Standards used were 50g/t
Cu and 200g/t Cu.

15.3 2004 Campaign

For the 2004 drilling campaign, samples were crushed to minus 2 mm, split using a Jones riffle splitter to
produce 1kg of material, and pulverized to 75 microns at Genalysis in Perth. The 2mm sample residues
were kept in the storage as reference samples (these were recently discarded in 2005). The 1kg pulp was
then split further using a narrow aperture riffle splitter to produce a 20-30g sample of pulp.

A four acid digest was carried out on the sample, then analysed by ICP-OES for copper ±cobalt ±silver.
Assay results were e-mailed from the Genalysis laboratory to the exploration site (via a Rawsat 64KB
pipeline), where they are entered into an Access database.

15.4. 2005/6 Campaign

For the 2005/6 drilling campaign, samples are being prepared at [Link] (AHK) in Kitwe, using
similar procedures to those of the 2004 campaign. AHK will also bag up Anvil-supplied standards and
blanks for QA/QC so that they cannot be recognised as such by the assaying laboratory. The 20-30g
sample pulp will be air-freighted to the ALS Chemex laboratory in Johannesburg, South Africa, where they
will be subject to a four acid digest and analysed by ICP-ME for copper and silver, and selected other
elements.

Item 16. DATA VERIFICATION

16.1 Twin Drilling

For drill result comparison purposes, in 1997, Anvil completed 11 DDH holes and 6 RC drill holes which
were collared within 4 to 11 metres of corresponding BRGM DDH holes drilled approximately 20 years
before. This twin hole drilling aimed to validate the results of the earlier drilling program and generate
sufficient samples to produce meaningful geostatistical comparisons. In order to test the validity of the RC
drill holes versus the DDH holes two pairs of twin holes were completed by Anvil. The RC drill hole was
drilled first followed by the DDH hole at a distance of 2 metres from the RC drill hole.

Early in the compilation of the Dikulushi database it was recognized that the old BRGM and new Anvil
assay data sets had different average values and somewhat different distributions. In recognition of the fact

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that this is an extremely complex issue, it was decided to commission Snowden Mining Industry
Consultants Pty Ltd ("Snowden") to prepare a detailed geostatistical study of the data. The full results of
that study are available in Snowden's report (Voortman, 1998).

The Dikulushi mineralisation was found to be moderately variable in width and highly variable in grade
over short distances. The complex interplay of mineralised structures and processes and innate complex
distribution of chalcocite within the Dikulushi deposit has led to highly variable drill hole assay
intersections. The deposit is also clearly zoned, in horizontal and vertical directions, and this adds to the
difficulty in meaningfully comparing assay results. Drill holes only a few metres apart can return quite
contrasting copper and silver intersections, making comparison of individual twin holes problematic. The
average differences over a number of holes may be more comparable than the absolute difference in
individual twin holes.

16.2 Twin Anvil and BRGM Diamond Drill Holes Comparison

The results of the 11 Anvil twin DDH holes were used to compare intersection results and test the validity
of the earlier BRGM results. Although the twin holes were placed within 4 to 11m of their corresponding
BRGM holes, the average distance was 4.5m. At a 2.0%Cu cut-off grade, the average of the copper
intersections from these holes was as follows:

¾ BRGM (11 holes) 18.73m at 12.91 %Cu (for 241.8 m%Cu), and
¾ Anvil (11 holes) 16.90m at 9.58 %Cu (for 161.9 m%Cu).

Clearly there was a significant discrepancy as the BRGM holes were 11% wider and 35% higher grade,
representing 49% more contained copper metal. The difference in width is hard to comprehend, particularly
since the Anvil twin holes provided DDH core. However, it is probably partly due to chance, partly
different sample widths (Anvil usually took full lm samples), partly a product of hole deviation and partly
the fact that if the BRGM assays are higher tenor, then they all exceed the cut-off grade over a greater
width.

As the BRGM copper assays in this comparison are on average 35% higher grade than the Anvil assays,
this suggests a systematic sampling or laboratory bias between the two data sets. Unfortunately there is no
detailed data on the French laboratory, sample preparation, assay method, etc for the BRGM samples. The
BRGM core has also been lost so that there is no possibility of re-assaying any of the original BRGM drill
core. Goldlabs in Johannesburg, South Africa analysed the Anvil samples, and ALS assayed duplicate
samples in Perth.

16.3 Twin Anvil RC and BRGM Diamond Drill Holes Comparison

The results of the 6 Anvil RC drill holes were used to compare the intersection results of Anvil RC drilling
and earlier BRGM diamond drilling. The average of the 6 copper intersections, at a 2.0%Cu cut-off grade,
was as follows:

¾ BRGM (6 DDH holes ) 22.40m at 5.56 % Cu (for 124.5 m%), and

¾ Anvil (6 RC holes) 25.00m at 6.96 % Cu (for 174.0 m%).

The results show that the RC intersections are wider (+12%) than those of the BRGM DDH holes, which
suggests the possibility of down hole contamination during RC drilling. This is clearly possible as the water
table at Dikulushi is only about 8m deep and large water inflows were experienced during drilling of some
of the RC holes. However, it is thought that the RC holes are probably deviating more than the DDH holes
and therefore some of this difference may be due to the RC intersections being at a higher angle to the
mineralised zone.

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The Anvil RC assays are also 25% higher than the equivalent BRGM DDH assays. In summary, the Anvil
RC drill holes are reporting 40% more contained metal than the BRGM DDH holes, which in turn are
reporting 49% more metal than the Anvil DDH holes.

16.4 Twin Anvil RC and Anvil Diamond Drill Holes Comparison

Anvil also completed two twin RC and DDH holes (each 2m apart) in order to test for discrepancies
between the two drilling methods. At a 2.0%Cu cut-off grade the average of the 2 copper intersections was
as follows:

¾ Anvil (2 DDH holes) 21.00m at 12.62 % Cu (for 265.0 m%), and

¾ Anvil (2 RC holes) 23.50m at 15.37 % Cu (for 361.2 m%).

In this comparison the RC drill holes are again wider (+12%), higher grade (+22%) and report more copper
metal (+36%) than the DDH holes. This is in good agreement with the Anvil RC versus BRGM DDH holes
where the RC holes reported greater widths, grades and therefore more copper metal.

16.5 Global Comparisons of Anvil versus BRGM Assay Results

To further compare the validity of the various drill and assay types a comparison was made on average
copper intersections of the three drill and assay types for all holes in the main Dikulushi mineralised body.
This only included angled drill holes orientated at +/- 15° from grid north and is at a 2.0%Cu cut-off grade.
The average intersection from all 62 intersections was as follows:

¾ BRGM (26 DDH holes) 20.00m at 9.77 % Cu (for 195.4 m%),

¾ Anvil (17 DDH holes) 17.60m at 10. 19% Cu (for 179.3 m%), and
¾ Anvil (19 RC holes) 22.70m at 7.95% Cu (for 180.5 in%).

The total copper metal contents (m% basis) are reasonably similar. The BRGM DDH assays are 4% less
than the Anvil diamond assays (versus +35% on the twin holes), however a number of the BRGM holes in
this comparison are on the periphery of the deposit where the mineralisation grade is reduced. The BRGM
DDH assays are 23% higher than the Anvil RC drill assays (versus -20% on the twin holes), and the Anvil
DDH assays are 28% higher than the Anvil RC drill assays (versus -18% on the two twin holes). These
assay results are in contrast to the twin hole results, although the width relationships are consistent with the
twin results.

For a final comparison, all drill holes in the core of the deposit, represented by the central 200m strike
length and above 100m depth (900mRL), were compared. Again this comparison included only angled
drill holes orientated at + /-15° from grid north, although in this comparison time, a lower 0.5%Cu cut-off
grade was used. The average of the 42 intersections was as follows:

¾ BRGM (15 DDH holes) 28.35m at 7.72 % Cu (for 218.7m%),

¾ Anvil (12 DDH holes) 23.36m at 6.66 % Cu (for 155.7m%), and
¾ Anvil (l5 RC holes) 28.73m at 6.61 % Cu (for 189.8m%).

The BRGM DDH intersections are again wider on average (+21%) than the Anvil DDH intersections,
while the RC drill intersections are again the greatest width, which is a consistent pattern through all of the
comparisons. The BRGM copper assays are on average 16% higher than the Anvil assays.

16.6 Discussion of Anvil and BRGM Drill Hole Assay Comparisons

The various comparisons undertaken reveal that the BRGM DDH intersections are greater in width than the
comparable Anvil DDH intersections. Without the core to examine, the reasons for the greater intersection

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width in the BRGM Diamond drilling can only be surmised, but it is likely to be a result of various factors.
These probably include chance, different sample widths, sampling methodology, drill hole deviation and
partly the fact that if the BRGM assays are of higher tenor, then they will report a greater high-grade
interval. Other possible compounding factors are the drilling method (e.g. triple tube versus conventional
core barrel), core loss, driller competence, etc, most of which are not known for the BRGM drilling.

Examining all of the comparisons undertaken, the BRGM DDH assay intersections vary from 35% higher
to 4% lower than the Anvil DDH intersection assays. Using all three comparisons gives an average (and
median) difference of + 16%.

RC intersection widths are consistently greater than the comparable DDH widths. This could be partially
due to larger (lm) sample sizes, more drill hole deviation, or the presence of down hole contamination of
chalcocite during drilling. Although it is also possible, but less likely, that corroded, powdery or loose
grains of chalcocite within a porous sand grain matrix could be selectively washed from the rock by the
drilling mud during Diamond drilling, leading to narrower DDH intersections. However, this washing
effect seems less likely than RC contamination. As far as the RC grade is concerned, some of the individual
twin hole comparisons show higher grades for RC drilling while the global comparisons show lower or
similar grades.

During the 1998 modelling, mineral resource estimates were completed both with and without BRGM data
and the differences in contained metal was less than 1%.

16.7 Data Preparation

Drillhole sample data was received from Anvil in a set of tables within an MS Access database
([Link]). The tables were exported as comma separated value (.csv) files, and imported into
Datamine. A listing of sample data files can be found in Table 6. The spatial extent of the data is
summarised in Table 7.

Data type System file Datamine file Records

Collar [Link] Collar 135

Downhole survey [Link] Survey 477/579
Drillhole assay [Link] Assay 5038
Drillhole geology [Link] Geology 1409

Table 6: Exploration Sample Data Files

Note: records were added to the downhole survey file at the time of loading, such that any holes that did
not have survey readings at collar, were assigned collar readings corresponding to the first downhole
reading.

Direction Minimum Maximum Range

Easting 49919.74 50300.44 380.70
Northing 19826.13 20079.78 253.65
RL 776.01 1006.49 230.47

Table 7: Sample Data Limits

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It is common practice to use negative values in assay databases as codes in numeric grades fields (to
represent, for example an instance of ‘below level of detection’). A code translation file in the Dikulushi
database provided some information as to what the codes represent. All negative numbers were re-set, to
background copper or silver values (0.01% Cu or 0.01g/t Ag).

With respect to effect on grade estimation, the option to assign a very low grade value to unassayed
intervals is intermediate between assigning a zero value (very conservative) or an absent data value
(optimistic, because the most probable value of ‘below level of detection’ would not be available to act as a
constraint on high grade in the search neighbourhood). This action affected 248 copper values, and 1391
silver values. It was not ascertained where these samples locate spatially, but it is unlikely that more than a
handful are associated with the modelled mineralisation.

Three desurveyed drillhole files were created, one with assays only (dikassde), one of geology only
(dikgeode), and one with assays and geology merged (diksmpde).

16.8 Drilling Processes and Assessment of 1997 Drilling

16.8.1 Diamond Drilling Program

Diamond drilling at Dikulushi during the 1997 program was undertaken by RUC Zambia Ltd using a Smith
2000 multi-purpose rig mounted on a Magirus Deutz 6x6 truck. All drilling was done with 3m rods and a
conventional core barrel. More recent programs have been undertaken by Stanley Mining Services from
Zambia.

The diamond drilling during the first program in 1997 was completed at an average rate of 34.8m per day.
After the drillers became familiar with the local drilling conditions it was usual to drill more than 40m per
day. All holes were drilled at 60° with an azimuth of 340° (grid north).

Holes were drilled HQ from the top and converted to NQ when judged appropriate, usually after drilling
through to weathered zone and the first broken or fractured zone. On average holes were drilled HQ to 20
to 35m, HQ rods were used as casing to that depth and NQ drilling commenced from that point.

Core orientation marking was attempted after each 3m core run. This was done using a spike or wax pencil
on a metal weight at the end of the wireline which when dropped down marks were usually visible so it was
possible to orient the start of each run, but broken sections, which could not be reconstructed, frequently
disrupted the continuity of orientation.

Holes were surveyed with a multi-shot Sperry camera after completion. Surveying was generally done by
pulling back 6m, placing the camera in rods, lowering down the hole through the core barrel and then
pulling rods such that a survey shot was taken at least every 12m. Surveying results were adequate to good;
the only major problem was that the film used appeared to be extremely sensitive to any light (even red)
and to the age of the developer.

Surveying showed the holes were quite straight with dip not varying more than 2 degrees from initial
recording and azimuth not varying by more than 4 degrees. It also showed initial rig placement was
satisfactory with initial azimuth within 5 degrees and initial dip within 3 degrees of intended orientation.

Core recover was generally good with over 90% recovery- with the following exceptions:
• Clayey/sandy tophole (ie soil) sections which wash out,
• Broken zones where a proportion of the drilled material is not of a size to be held by the core-catcher
and is ground away,
• Sandy zones which wash away, and are presumed to be sandstone, which has been highly broken by
fracturing (not common),

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• Cavities, generally are not large (usually centimetre scale), though one presumed cavity in a RC hold
was nearly 3m, and
The broken zones, frequently preceding mineralised zones, delayed Diamond drilling by the regular need to
pull rods to unblock the barrel and ore core-catcher. There were also water losses to the broken ground.

16.8.2 RC Drilling Program

RC Drilling at Dikulushi during the 1997 program was undertaken by RUC Zambia Ltd using a Hotline
multipurpose rig mounted on a Magirus Deutz 6x6 truck with a 900psi/350cfm compressor on board. A
second Magirus Deutz 6x6 provided an extra 900psi/350cfm booster compressor. All holes were drilled
with a 4¾”/120mm face sampling bit. More recent programs have been undertaken by Stanley Mining
Services from Zambia.

The RC drilling was completed at an average drill rate of 114m per day. A truck mounted booster
compressor was used in addition to the main rig compressor to help with water inflows. The booster
compressor was always required. All holes were drilled 60° towards an azimuth of 340° (grid north)

The RC drilling encountered numerous problems connected with large water flows and broken ground.
Generally the water table in the area is at about 8m depth. From first contact with water to about 50m was
generally little problem with the air available capable of pushing back ground water and keeping samples
dry. Frequently after 50m (commonly after adding a rod at 54m) it became impossible to keep the water our
and samples were wet. The difficulty in keeping out water was greatly exacerbated by the common
fracturing in the ground and the number of drillholes on the prospect combining to give easy
communication between holes and from depth to surface. The release of air pressure along fractures and/or
up other drillholes often precluded building adequate down hole pressure to keep the water table at bay.

The inflow of water in fractured ground often resulted in rock cobbles caving in around the drill string,
which frequently jammed rods in the hole. Although ultimately all rods were recovered, the prospect of
losing a drill string down hole was a common occurrence and seven holes had to be abandoned before
reaching their intended depth.

The RC rig did not allow the possibility for downhole surveying to be carried out. The four RC pre-collars
were surveyed after the diamond tail was completed, but as casing was in the hole to the depth of RC
drilling, only dip measurements were returned for the RC section of the hole. Dip variations within the RC
section were within the same range as dip variations in the DDH, ie less than 2 degrees. Dips were always
within 3 degrees of the intended 60 degree inclination.

The azimuth of the RC holes was more problematic. The azimuth readings immediately after the RC pre-
collar were 18, 18, 9 and 10 degrees away from the intended 340 degrees, all varying in an anti-clockwise
direction. Some or all of the azimuth rotation must have occurred during drilling as compared with
incorrect alignment of the rig. This rotation needs to be taken into account for all RC holes.

To account for the amount of rotation in unsurveyed RC holes requires some assumptions:
• The RC rig was lined up correctly. This is assumed because the diamond rig was lined correctly in
most instances and because there is no information to assume otherwise.
• That rotation is consistent down the hole. This is assumed because we have no information to
suggest otherwise.
• The four RC holes with diamond tails are representative. Again we have no other data to suggest
otherwise.
From these assumptions and using the information from the RC holes with diamond tails, one can average
the variation in azimuth seen from the rig line up orientation of 340° to first survey in the diamond tail.
Over a total of 350m of RC drilling 55° of rotation has apparently occurred, an average of 0.16° of rotation

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each metre. Thus, in the absence of actual surveys, a correction factor of 3.2° anticlockwise rotation for
each 20m of RC drilling should be applied to each RC hole, as a best estimate of the likely deviation.

Item 17. ADJACENT PROPERTIES

A regional exploration programme is ongoing on the accessible PRs of the Dikulushi Project. Results to
date have been encouraging, but are not yet material to the valuation of the Dikulushi Mine.

Item 18. MINERAL PROCESSING & METALLURGICAL TESTING

A significant amount of metallurgical testwork was undertaken for Anvil for the prefeasibility phase of the
Dikulushi Copper-Silver Project.

The work has carried out during February to April 1998 by the Minerals Engineering Group of Mintek at
their laboratories in Randburg, South Africa (Mintek 1998). Resource Management Group (RMG)
established and supervised the testwork on behalf of Anvil (Resource Management Group, 1998). Local
co-ordination and support in South Africa were provided by Fluor Daniel, Southern Africa. The Mintek
data were used as the process design basis for the prefeasibility study completed by Signet Engineering in
Perth in April 1998 (Signet Engineering Pty Ltd, 1998).

The metallurgical testwork program carried out by Mintek was on various sulphide, oxide and host rock
samples from Dikulushi. The locations of these samples, the average grades and the rock type
classification are listed below in Table 7. Physical tests were undertaken for typical composites of massive
sulphide and light gray sandstone. Flotation tests were carried out on primary, transition, oxidised and
highly oxidised composites from the east zone, and primary and complex sulphide composites from the
west. These composites represent an arbitrary sub-division of the orebody.

A previous testwork program was carried out by BRGM, the results of which were available in their report
no. 80 SGN 260 MIN issued in April 1980 (BRGM, 1980). A limited amount of preliminary testwork was
initiated by Anvil and undertaken by Gold Fields in Johannesburg and was detailed in their report no.
FL04\ks dated 4 November, 1996 (Goldfields, 1996).

Each composite comprised material from one to three drill holes. The sources of the various samples along
with their assay results are listed in the following Table 8.

% Copper Silver
Composite Drill Holes Classifications Total Oxide g/t
No.
1 DIK 15, 22 East-oxidised 9.5 1.5-2 360
2 DIK 28, 31 East-deeper 15.2 0.8 525
3 DIK 6, 11, 14 West-main 10.1 1.0 150
4 DIK 26 West-disseminated 2.8 0.3 60
5 DIK 5, 14 West-complex 9.0 1.3 50
6 DIK 12, 13, 23 East-transition 7.9 0.6 260

Table 8: Sources of Dikulushi Metallurgical samples with assays

Head analyses reveal a relatively high total copper grade of 16.45% for the East Primary composite, while
the others are in the range of 8.16-11.4%, which is reasonably close to the target grade of 10% copper.
Silver assays are variable, with a range of 138-562 g/t, the highest being for the East Primary. Iron and
sulphur levels are relatively low. Potential penalty elements are lead and zinc in the West Complex, arsenic
in the West Primary and West Complex, and fluorine in all composites.

Previous testwork by BRGM in the 1980's indicated good flotation characteristics, with recoveries ranging
from 84-96% for copper, and 79-96% for silver. High grade concentrate grades of 63-72% copper and 950-

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2,600 g/t silver were produced from head grades in a similar range to the recent program. BRGM found
that sulphidisation with Na2S was required for oxidised material, though they did not test highly oxidised
near surface ore.
The mineralogical work revealed that the dominant copper sulphide mineral was chalcocite, in both
massive and disseminated forms. Some of the massive chalcocite is crystalline, and may tend to slime
during grinding. Complex sulphide in the west zone contains chalcopyrite, bornite and sphalerite.
Sphalerite also is common in other areas associated with chalcopyrite. Near surface oxide contains
malachite, azurite and chrysocolla. The latter does not float even when sulphidised. Silver is assumed to
be present mostly in solid solution in chalcocite, and occasionally as selenide. Arsenic occurs as
arsenopyrite and tennanite. Sandstone is the dominant host rock.

The physical tests reveal that the Dikulushi ore is of moderate hardness, with figures of 14.07-17.43 for
Rod Mill Work Index (RMWI), 10.51-12.49 for Ball Mill Work Index (BMWI) and 0.2139-0.3887 for
Abrasion Index (AI). The higher indices are for the massive ore.

Flotation results at 80% passing 75 microns are comparable to those in the BRGM data, with predicted
recoveries of 71-97% for copper and 63-95% for silver. The lower figures are for near surface highly
oxidised material. The predicted concentrate grades are 48-70% copper, and 661-2,300 g/t silver. Using a
preliminary estimate of the proportion of each ore type in the deposit, the weighted average recoveries are
91.8% for copper and 91.4% for silver. The corresponding concentrate grades expected are therefore
59.7% copper and 2,130 g/t silver. Detailed concentrate analyses reveal that fluorine is the only impurity
over the penalty threshold. Reagent usage appears modest, with the only issue being the Na2S required for
the oxidised material, which may require up to 3.2kg per tonne of ore.

Additional work done by Independent Metallurgical Laboratories (IML) in 2003 confirmed the Mintek
work with an average RMWI of 16.5 kWh/t and AI of 0.28. Rougher flotation tests indicated that on high
grade chalcocite ore, that grind size is not critical with recoveries of copper around 96% for P80 75 microns
to 150 microns, and that with correct redox potential control, good float kinetics and high grade
concentrates (better than 50% copper) are achieved. A design residence time of 50 minutes was proposed.

Testing on low grade and float from HMS plant tailings indicated that grind size will be more critical and
as expected recovery and concentrate grades are lower. More work is required on these materials and is
planned to be undertaken in the future. Note that existing low grade stockpiles and tailings from the current
HMS plant have not been included in the Dikulushi ore reserves.

Item 19. MINERAL RESOURCE & MINERAL RESERVE ESTIMATES

19.1 Geological Interpretations

The mineralisation interpretation is based on previous work carried out by the Anvil site geologists and by
Devmin Pty Ltd (DevMin) for the NI 43-101 Technical Report dated 16th February 2004. This current
Mineral Resource estimate has been up-dated by Finore Pty Ltd (FinOre) incorporating intersections from
later drilling, as well as knowledge gained from the current mining activity.

19.2 Surface and Solid Modelling

19.2.1 Topography

Anvil supplied a triangulated wireframe surface of topography in SURPAC format that represents the
surveyed topographic surface prior to mining. Additionally Anvil supplied a Surpac DTM of the Open Pit
as at the end of December 2005, below which the current Mineral Resource has been estimated.

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19.2.2 Mineralisation

The mineralised envelopes were generated using wireframes by creating hangingwall and footwall surfaces
from the true intercept coordinates of drillholes based on a 0.5%Cu cut-off and using geological
interpretations provided by the Anvil site geologists. The strike boundary limits extend approximately 10m
beyond the last interpreted sections, and the depth extent is extended just beyond the last intersection on
each section.

A cellular model of the mineralisation was constructed by ‘filling’ the mineralisation wireframes with cells,
based on the model prototype settings shown in Table 9.

The parent cell dimensions were formulated from observations of the typical data spatial distribution in
each of the easting, northing and vertical directions. The greatest variation in sample spacing occurs
vertically, and the chosen vertical cell dimension represents a compromise between the more densely
drilled upper portions of the mineralisation and the more sparsely drilled lower extents.

The minimum sub-cell dimensions were selected to reflect the likely geometric resolution achievable using
the current drillhole spacing. Sub-cells were used to fill the wireframes with greater resolution than was
available with the parent cells, thereby generating a block model volume comparable to the wireframe
volume. No grades were estimated directly into sub-cells (refer Section 17.6.2). These details are listed in
Table 10.

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 Direction Minimum Maximum Range

Easting 49850 50450 600

Northing 19750 20250 500

RL 640 1060 420

Table 9: Model Dimensions

Parent Minimum
Direction Cell Size Number of sub-cell
(m) cells (m)

Easting 5.0 120 5.0

Northing 2.5 200 2.5

RL 10.0 42 5.0

Table 10: Cell Parameters

19.2.3 Total Volume Model

A waste cell model was created to fill the full extent of the model prototype, constrained below the
topographic surface. The total volume model is represented by the waste model overprinted with the
interpreted mineralisation cell model, also trimmed by topography.

The mineralisation/waste zones are differentiated in the ‘volume’ model using codes in the field
MINZONE. Other fields were stamped with default values. These are tabulated in Table 11. Some fields
were created during the process of grade interpolation, and are included in Table 12 for completeness.
Their derivation is explained in Section 17.6.

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 Field Description

MINZONE Mineralised zone

MZONE Numeric coding for MINZONE

DENSITY Bulk density defaults

CU Interpolated Kriged copper value
CU_IDS Interpolated copper value (Inverse Distance Squared)
AG Interpolated Kriged silver value
AG_IDS Interpolated silver value (Inverse Distance Squared)
SRCHVOL Search ellipse pass (1,2,3)
NUMSAM Number of samples used to estimate cell grade
RESCAT Resource classification codes (1,2,3)
SRCHDOM Search orientation domain

SLOPECU Kriging Slope of Regression - Copper

SLOPEAG Kriging Slope of Regression - Silver

Table 11: Model Field Descriptions

MINZONE MZONE Description

HGWL 1 Hangingwall Mineralisation

MAIN 2 Main or footwall mineralisation

WSTE 3 Waste (i.e. Not Main or Hangingwall)

Table 12: Mineralisation Field Codes

19.3 Sample Flagging

An advantage of constructing wireframes of the mineralisation using drillhole intercept data is that the
same data can be used to directly flag the drillholes with the relevant ‘MINZONE’ mineralisation code
(refer to Table 12). This ensures that the intersections are correctly honoured, and are compatible with the
wireframe.

19.4 Statistics and Sample Compositing

A histogram of the drill sample lengths revealed the expected dominance (60%) of 1.0m as a sample
interval. Other sample lengths are distributed relatively evenly below and above this value. Figure 5
demonstrates this. Consequently the flagged drill sample set was composited down the hole to 1.0m for
statistical and variographic analysis. Minimum composite lengths were set to 0.5m; no composite samples
with length less than 0.5m were retained.

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 Figure 5. Raw sample lengths of Dikulushi drilling.(all data).

19.4.1 Univariate Statistics

A log probability plot of all copper composites from mineralised zones revealed a bimodal distribution,
with sub-populations separated by a broad inflection at 0.6%Cu. This is very close to the lower cut-off for
the mineralised envelopes (0.5% Cu) as used by Anvil, and reflects a small proportion of the sample data
locked into the envelopes as being below cut-off.

For each of the Main and Footwall zones, univariate statistics were generated for both copper and silver
(refer to Table 13). The same data subsets are also displayed graphically as log histograms and log
probability plots (Refer to Figures x & y).

FIELD ZONE n Min. Max. Mean Var. C of V

MAIN 2024 0.01 65.1 7.46 101.6 1.35

Cu%
HGWL 939 0.01 36.73 2.70 11.8 1.27

MAIN 2024 0.01 2441 199 103918 1.62

g/tAg
HGWL 939 0.01 1465 67 11792 1.61

Table 13: Summary Statistics (1m composites within mineralised zones)

19.4.2 Copper Distributions

The copper distributions in particular the Main zone, display clear inflections around 0.5 and 0.6% Cu,
highlighting the lower threshold used to guide the interpretation.

Above 0.5% Cu, the copper distributions approximate lognormal character, up to a point where a discrete
high grade population can be identified, in the case of the Main Zone above about 20%Cu, and for the
Hangingwall zone (less clearly) above about 15%Cu. Then Main zone in particular exhibits a pronounced

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high grade distribution above 10% whereas the Hangingwall zone’s population drops off dramatically
above 10%.

Figure 6. Copper distribution, MAIN zone

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 Figure 7. Copper distribution, Hangingwall zone

19.4.3 Silver Distributions

A feature of the distribution of the Main zone silver is the spread and low kurtosis (peakedness) of the log
transform grade histogram. A high-grade population appears above 1000g/t.

The Hangingwall silver grade distribution is more peaked, but shows a slight bimodal character, with an
inflection around 80g/t. A high-grade population appears above 800g/t.

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 Figure 8. Silver distribution, Main zone

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 Figure 9. Silver distribution, Hangingwall zone

19.4.4 High Grade Cut Analysis

Consideration of high-grade cutting options was undertaken using several criteria.

Firstly, log probability distributions (Section 17.4.1) were reviewed for the presence or absence of high
grade populations, to help focus on where anomalously high values might be expected.

Next, the drilling data for each zone and grade field was viewed in 2-D sections, as well as full 3-D space,
with colour highlighting of samples above a range of potential high-grade cutting thresholds. This
approach assists in the assessment of the spatial distribution of high-grade values, specifically whether they
are clustered in coherent areas, or scattered as ‘nuggets’.

Finally, information provided by mine geologists on the spatial distribution of high grades in mining was
taken into account.

Table 14 details the high grade cuts used in the Mineral Resource estimate.

High Cut
ZONE
Cu (%) Ag (g/t)

MAIN 45 1600

HGWL 30 800
Table 14: High Grade Cuts

The general conclusion was that the Main zone high grade populations identified in the log probability
plots are largely, but not exclusively, related to real and coherent high grade zones (eg. massive
mineralisation along the footwall boundary of the Main zone).

By progressively raising the colour threshold on the high grade values during graphical visualisation, the
point at which the highlighted values appear to be unrelated (scattered) was noted. Combining this
information with other considerations, high grade cut values were assigned, as shown in Table xx.

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19.5 Variography

All variographic analyses and modelling were carried out using GeoAccess Professional vers. 2.8. Copper
and Silver variograms were modelled for each of the Main and Hangingwall zones. The variography study
was constrained to the major expected directions of continuity (principal planes of the structural controls)
for copper and silver, in each of the mineralised zones (see Figures x to y). No transformations were made
to account for the broad arcuate geometry of the zones.

Consistent with the statistical analysis, the 1.0m sample composite dataset was utilised for variography.
Initial attempts to generate variograms using the absolute grade values returned poor structures. Median
indicator variograms proved to be more convincing, and this option was used throughout the study.

The variogram structures in the dip and strike directions are of moderate to poor quality, mainly because
the limited information at short range makes the structure in the region of the variance axis difficult to
model. In general, the silver grade variograms are more robust.

Downhole variograms were used to identify the respective nugget effects for modelling. The nugget effects
were determined by modelling one structure spherical models, connecting the model through the first two
lag gamma positions on the variogram. The position on the gamma axis where the spherical model cut the
axis was determined to be the nugget value. This value was then recorded relative to the population
variance, which in the case of median indicator variograms is always 0.25.

Each set of variograms (for example the three orthogonal copper variograms for the Main zone) used the
same sill values, but the ranges were modelled to reflect the individual directions. Variograms were
modelled using a two nested spherical model. Both the copper and silver variograms are generally isotropic
at the short range interval, for two of the orthogonal directions, with the third direction anisotropic. The
Main zone shows more pronounced anisotropy in the long range than the Hangingwall zone. The normal
direction (orthogonal to dip and strike) accesses only a small number of samples; accordingly the ranges for
the normal directions are derived from poorly structured variograms – see Figures 10-13.

Median Indicator variogram parameters as used in grade interpolation are shown in Table 15. All nuggets
and sill are expressed as relative to 1.0

MIN- Grade Nugget Spatia Range (m)

Structure
ZONE Var. l Var.
Dip Strike Norm.
1 0.37 27 11 26
Cu 0.28
2 0.35 103 32 47
MAIN
1 0.44 25 12 20
Ag 0.20
2 0.36 125 45 32
1 0.04 18 15 11
Cu 0.32
2 0.64 45 22 46
HGWL
1 0.16 14.5 12 50
AG 0.24
2 0.6 50 42 60

Table 15: Variogram Parameters

Relative Median Indicator parameters

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Downhole Variogram. MAIN Zone – Copper

Main Zone – Copper

Down Dip variogram (-60° to 180°)

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Along Strike (0° to 090°)

Normal Variogram (-30° to 000°)

Figure 10. Median Indicator Variogram – Copper MAIN Zone

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Downhole variogram

Down Dip (-70° to 150°)

Along Strike (0° to 060°)

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Normal Variogram (-20° to 330°)

Figure 11. Median Indicator Variogram – Copper Hangingwall Zone

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Downhole variogram

Down Dip (-60° to 180°)

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Along Strike (0° to 090°)

Normal (-30° to 000)

Figure 12. Median Indicator Variogram – Silver MAIN Zone

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Downhole Variogram

Down dip (-70° to 150°)

Along Strike (0° to 060°)

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Normal (-20° to 330°)

Figure 13. Median Indicator Variogram – Silver Hangingwall Zone

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19.6 Grade Interpolation

19.6.1 Search Specifications

Partitioning of an orebody into search orientation domains is one means of allocating search ellipse
orientation parameters consistent with local dip and dip direction characteristics. This technique was
selected as suitable in assisting the controlled estimation of grades into the Dikulushi model.

The wireframes of mineralisation were assessed in both section and plan view slices to identify occurrences
of dip and strike change, as a basis for defining potential search orientation domains.

Overall, the individual walls of the Main and Hangingwall mineralisation zones exhibit relative uniformity
of strike and dip geometry, although they do appear as slight arcuate structures in plan view, splaying apart
as mutual mirror-images. In detail, individual boundary surfaces deviate more in response to localised
thickening. The most marked cases being the upper regions or the Main zone between sections 50120E and
5014E, and the upper portion of the Hangingwall zone to the west of 50120E.

The assessment of strike and dip variation concluded that a single search orientation is adequate for the
Hangingwall zone, but that the Main zone requires partitioning into four domains. The domains are
summarised in Table 16.

Orientation
MIN- SEARCH-
Description
ZONE DOM
Dip Direction Dip Plunge

HGWL 1 Entire Zone 150 75 -

MAIN 1 Western slice (~20%) 180 65 -

2 Central-west slice (~25%) 180 78 -

3 Upper east quarter (~35%) 160 68 -

4 Lower east quarter (~20%) 160 75 -

WSTE 1 All waste 180 65 -

Table 16: Search Orientation Domains

Grade variations within the interpreted mineralisation envelope are observed to be quite sharp both in
drillhole transects and in grade control data. Consequently search ellipse dimensions were designed to be
relatively tight, to minimise the degree of smoothing introduced by the interpolation process.

A tight search ellipse, however, will fail to estimate some cells in the less densely drilled areas, particularly
with the implementation of criteria specifying minimum number of samples. To ensure that the majority of
cells are estimated, the search ellipse has been allowed to expand (x2) after the first pass, to attempt to
estimate uninformed cells. A third, further expanded pass (x3), then seeks to estimate remaining
unestimated cells. Table 17 details the parameters for the different passes.

As part of the validation process, each search ellipse was displayed in 3D within the respective Search
Domain, to ensure the orientations and radii are developed as envisaged.

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 Pass Direction Radius Number of samples
Min Max

Dip 35

1 Strike 20 8 20

Normal 5

Dip 70

2 Strike 40 8 20

Normal 10

Dip 105

3 Strike 60 2 15

Normal 15

Dip 10

Waste Strike 10 4 20

Normal 2

Note: ‘Normal’ refers to ninety degrees to the strike and dip directions. i.e.
normal to the plane of the structure.

Table 17: Search Ellipsoid Dimensions

19.6.2 Grade Estimation

Copper and silver grades from 1.0m sample composites were estimated into both the Main and
Hangingwall zones using Ordinary Kriging (OK) and Inverse Distance Squared (IDS) methods. The Waste
domain blocks were estimated by the IDS method.

Grade interpolation was conducted under zonal control, such that only assays flagged with the same
MINZONE code as the cell being estimated are used. Interpolations were made into parent cells, and the
estimates mapped to all sub-cells within the respective parent cells. Cell discretisation was used as part of
the estimation process.

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19.6.3 Density Assignment

As carried out in previous estimates the estimated bulk density was based on the regression of density
against total copper grade in samples. As mentioned in the DevMin report 2005 this formula is considered
likely to overstate densities in the disseminated mineralisation, and potentially understate it in the presence
of massive mineralisation.

As an alternative, a simple duality was established between the interpreted mineralised zones and waste
material, and single densities assigned to each (see Table 18). These values are consistent with current
practice in the open pit grade control.

Material t/m3

Mineralised zone 2.8

Waste 2.6

Table 18: Densities of Ore and Waste

19.7 Estimation Validation

19.7.1 Statistical and Visual Validation

Basic interpolated cell grade and ancillary field statistics were generated to confirm that values fall within
acceptable bounds.

The estimated cellular model was thoroughly scrutinised using graphical visualisation utilities. Model and
drillhole data were overlain and viewed in various 2-D section and plan view slices, with colour
highlighting, as required, on grade or zonal attributes.

Model grade spatial distribution patterns were also reviewed using 3-D facilities, formatted variously as
section planes, point clouds and cell faces.

Estimation ellipses were displayed in 3D to ensure the search orientation and radii per search domain are as
envisaged.

A series of Swath Plots were generated comparing block estimates with local composited samples, within a
specified window, for both Copper and Silver. Figure 14 shows Swath Plots for Copper and Silver for both
domains.

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 Model vs Drillhole Composites by Easting
Hangingwall Zone Copper

250 6.00

5.00
200
KTonnes and Drill Metres

4.00
150

Cu grade %
3.00

100
2.00

50
1.00

0 0.00
50060

50080

50100

50120

50140

50160

50180

50200

50220

50240

50260
Easting

Model Ktonnes DH Metres Model Cu% DH Composite Cu%

Model vs Drillhole Composites by Easting

Main Zone Copper

350 18.00

16.00
300

14.00
250
KTonnes and Drill Metres

12.00

Cu grade %
200 10.00

150 8.00

6.00
100
4.00

50
2.00

0 0.00
50000

50020

50040

50060

50080

50100

50120

50140

50160

50180

50200

50220

50240

50260

50280

Easting

Model Ktonnes DH Metres Model Cu% DH Composite Cu%

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 Model vs Drillhole Composites by Easting
Hangingwall Zone Silver

250 160.00

140.00

200
120.00
KTonnes and Drill Metres

100.00
150

Ag grade g/t
80.00

100
60.00

40.00
50

20.00

0 0.00
50060

50080

50100

50120

50140

50160

50180

50200

50220

50240

50260
Easting

Model Ktonnes DH Metres Model Ag g/t DH Composite Ag g/t

Model vs Drillhole Composites by Easting

Main Zone Silver

350 600.00

300
500.00

250
KTonnes and Drill Metres

400.00

Ag grade g/t
200

300.00

150

200.00
100

100.00
50

0 0.00
50000

50020

50040

50060

50080

50100

50120

50140

50160

50180

50200

50220

50240

50260

50280

Easting

Model Ktonnes DH Metres Model Ag g/t DH Composite Ag g/t

Figure 14. Swath Plots for Copper and Silver, both domains.

19.7.2 Validation by Scenarios and Sensitivity Assessment

A range of sensitivity estimation runs were conducted to ascertain the impact of adjusting selected
parameters, as an indicator of stability and risk associated with the resource estimate. These included uncut

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estimations, interpolator (eg. inverse distance alternative) and cell discretisation. No significant parameter
sensitivity was detected.

Table 19 compares cut composited data per domain against the cut resource estimates for OK and IDS
methodologies.

Zone Grade Variable Composite Mean Model OK Model IDS

Cu 7.37 7.40 7.64
Main
Ag 198 192 201
Cu 2.69 2.79 2.86
Hangingwall
Ag 67 74 76

Table 19: Comparisons of Cut composite data against model average estimates, by Zone.

19.8 Resource Classification and Reporting

19.8.1 Resource Classification

Procedures for classifying the Dikulushi report were undertaken within the context of NI-43-101.

The wireframes of the Main and Hangingwall zones were individually projected (hulled) in long section,
and overlain with points marking the centre of intersection of all drillholes. This representation, on
computer screen, provides a good display of the density and coverage of drilling data.

Because drill spacing is quite varied, a simple distance criterion for each category is not sufficient, as, for
example, in lower density drilled areas, evidence of continuity may justify retention at a higher
classification category than would be indicated by drill density alone. This removes a “patchwork”
distribution of RESCAT values.

Closed strings representing outer limits for likely Measured and Indicated material for each zone were
digitised, and used to flag (cookie-cut) the resource model. The model was then coloured according to the
preliminary classification and viewed both in a 3-D visualisation environment, as well as against the
drilling data in cross section slices. Minor modifications were made to the strings, which were then used
for final classification flagging of the model, using the code conventions shown in Table 20.

Cells with estimated grades outside of the mineralised zones remain unclassified, and are retained for
geological planning purposes only.

CATEGORY RESCAT
Unclassified 4

Measured 1

Indicated 2

Inferred 3

Table 20: Resource classification Model Codes

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19.8.2 Resource Reporting

The Dikulushi Mineral Resources estimate is reported as at December 31, 2005. To identify and exclude
that portion of the Mineral Resource that has been mined, the surveyed pit surface DTM (file [Link])
supplied by Anvil was utilised.

The current reporting cut-off used on site is 1.5%Cu, and FinOre was instructed by Anvil to report
resources using the same threshold.

The validity of any resource estimate is related to many factors, such as the quality of the primary data, the
quantity of data available relative to the intrinsic character of the mineralisation, the integrity of geological
interpretations, and the suitability of technical evaluation (modelling) procedures. In addition, however,
there is a relationship between a resource estimate used for ore reserve evaluation and actual production, as
a function of the nature and selectivity of proposed/actual mining.

Observations on site of the degree of selective mining, and the complexity of the ore in detail suggests that
it would be difficult to represent the resource in a model to the levels of the current mining selectivity.
However, in spite of the expected smoothing inherent in applying Ordinary Kriging (or other linear
interpolator) to available data, the resource estimate is considered suitable for pit optimisation, and ore
reserve assessment on the basis of current open pit mining practices.

It is likely that any deviations in mining from the model estimates would tend towards a reduction in
tonnes, and increase in grade.

The remaining Dikulushi copper and silver resources, as at December 31, 2005 are estimated as follows:

Resource Tonnes Cu Ag Cu metal Ag metal

Category (%) (g/t) (tonnes) (Moz)
Measured 60,000 7.03 198 4,400 0.39
Indicated 751,000 8.37 245 62,900 5.91
Meas. + Ind. 811,000 8.27 241 67,300 6.30
Inferred 516,000 7.31 155 37,700 2.57

Table 21: Remaining Resource Estimates December 2005

(1.5%Cu cut-off: Classification Categories)

19.8.3 Grade Tonnage Curves

Grade tonnage curves were generated for various cut-offs, for both copper and silver in both domains. All
grade tonnage curves are shown in Figure 15, with selected plots shown here.

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 Anvil Mining - Dikilushi Project - Main M + I
Cut - off Volume Tonnes Cu % Density
12 64,627 180,955 17.13 2.80
10 89,513 250,636 15.45 2.80
7.5 126,820 355,096 13.45 2.80
5 179,235 501,859 11.31 2.80
3 221,933 621,413 9.91 2.80
2.5 233,198 652,955 9.57 2.80
2 245,067 686,186 9.21 2.80
1.5 256,776 718,972 8.87 2.80
1 267,209 748,185 8.58 2.80
0.5 273,407 765,539 8.40 2.80
0 276,782 774,989 8.30 2.80

Grade Tonnage Curve - Summary

Tonnes Tonnes Grade

Cu %

900,000 18.00

800,000 16.00

700,000 14.00

600,000 12.00

500,000 10.00

400,000 8.00

300,000 6.00

200,000 4.00

100,000 2.00

- 0.00
0 2 4 6 8 10 12 14
Cutoff

Grade Tonnage Curve

Main Zone Copper
Measured + Indicated

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 Anvil Mining - Dikilushi Project - Hangingwall Indicated
Cut - off Volume Tonnes Cu % Density
12 - -
10 414 1,160 10.52 2.80
7.5 1,198 3,354 9.50 2.80
5 4,354 12,192 6.91 2.80
3 18,422 51,581 4.52 2.80
2.5 23,934 67,014 4.11 2.80
2 29,982 83,948 3.74 2.80
1.5 32,886 92,081 3.57 2.80
1 33,860 94,807 3.50 2.80
0.5 34,967 97,907 3.41 2.80
0 36,495 102,187 3.28 2.80

Grade Tonnage Curve - Summary

Tonnes Tonnes Grade

Cu %

120,000 12.00

100,000 10.00

80,000 8.00

60,000 6.00

40,000 4.00

20,000 2.00

- 0.00
0 2 4 6 8 10 12 14
Cutoff

Grade Tonnage Curve

Hangingwall Zone Copper
Measured + Indicated

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 Anvil Mining - Dikilushi Project - Main M + I
Cut - off Volume Tonnes Ag g/t Density
12 64,627 180,955 565.42 2.80
10 89,513 250,636 501.37 2.80
7.5 126,820 355,096 425.53 2.80
5 179,235 501,859 346.31 2.80
3 221,933 621,413 294.84 2.80
2.5 233,198 652,955 282.78 2.80
2 245,067 686,186 270.82 2.80
1.5 256,776 718,972 259.80 2.80
1 267,209 748,185 250.43 2.80
0.5 273,407 765,539 245.12 2.80
0 276,782 774,989 242.27 2.80

Grade Tonnage Curve - Summary

Tonnes Tonnes Grade

Ag g/t

900,000 600.00

800,000
500.00
700,000

600,000 400.00

500,000
300.00
400,000

300,000 200.00

200,000
100.00
100,000

- 0.00
0 2 4 6 8 10 12 14
Cutoff

Grade Tonnage Curve

Main Zone Silver
Measured + Indicated

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 Anvil Mining - Dikilushi Project - Hangingwall Indicated
Cut - off Volume Tonnes Ag g/t Density
12 - -
10 414 1,160 247.81 2.80
7.5 1,198 3,354 224.97 2.80
5 4,354 12,192 183.03 2.80
3 18,422 51,581 126.06 2.80
2.5 23,934 67,014 115.83 2.80
2 29,982 83,948 103.45 2.80
1.5 32,886 92,081 97.92 2.80
1 33,860 94,807 96.38 2.80
0.5 34,967 97,907 94.20 2.80
0 36,495 102,187 90.57 2.80

Grade Tonnage Curve - Summary

Tonnes Tonnes Grade

Ag g/t

120,000 300.00

100,000 250.00

80,000 200.00

60,000 150.00

40,000 100.00

20,000 50.00

- 0.00
0 2 4 6 8 10 12 14
Cutoff

Grade Tonnage Curve

Hangingwall Zone Silver
Measured + Indicated Figure 15

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19.8.4 MINERAL RESERVES ESTIMATES

The resource block model was prepared by FinOre using Datamine mining software The block model was
depleted against the most recent digital topography model. The design and geotechnical parameters for the
final open pit are those as defined in the NI43-101 Technical Report 2004.

The reconciliation between the previous Mineral Reserve against and actual production for the full 2005
year and the six months to December 2005 is tabled below.

Reconciliation for period Jan-Dec 2005

ROM ROM ROM ROM

ROM Grade Grade Contained Contained
tonnes Cu% Ag g/t CuT Ag Kg
Mineral Reserve Model for 2005 389,025 5.59 155 21,746 60,202
Production for 2005 382,344 5.35 160 20,470 61,222
Reconciliation 98% 96% 103% 94% 102%
Reconciliation for period July- Dec 2005

ROM ROM ROM ROM

ROM Grade Grade Contained Contained
tonnes Cu% Ag g/t CuT Ag Kg
Mineral Reserve Model July-
Dec 2005 196,700 6.65 183 13,079 35,984
Production July-Dec 2005 218,268 6.08 185 13,273 40,426
Reconciliation 111% 91% 101% 101% 112%

Table 22: Reconciliation between the 2005 Mineral Reserve and production

19.9 Open Pit Ore Reserves

The open pit Mineral Reserve is published in Table 22 below and is based on the FinOre block model
reported as at 31st December 2005. The current open pit design is that used in the NI43-101 Technical
Report pit 2005 having a total depth of 150 metres below surface (850mRL).

Anvil have chosen to dilute the resource block model grades by 15% based on the reconciliation
performance between the Mineral Reserve model and actual production as per Table 23. Even though the
dilution factor has increased it is believed that this can be offset by the current higher copper price. This in
effect it is believed will not aversely affect the final150m pit design

Mineral Reserve Cu Ag Cu metal Ag metal

Tonnes
Category (%) (g/t) (tonnes) (Moz)
Proved 60,000 6.12 169 3,700 0.33
Probable 453,,000 7.98 252 36,200 3.67
Total 513,000 7.76 243 39,900 4.00

Table 23: Dikulushi Open Pit Reserves at December 31, 2005

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The Dikulushi open pit is shown to be technically and economically viable based on analysis of the
Measured and Indicated Mineral Resource only. Inferred mineralisation is considered as waste rock.
However, inferred mineralisation within the pit envelope comprises 61,000 tonnes at 4.43% Cu and 133 g/t
Ag.

Item 20. OTHER RELEVANT DATA & INFORMATION

There is no known additional data and information of relevance to this technical report.

Item 21. INTERPRETATION & CONCLUSIONS

Our geological understanding of the deposit has improved over the last year, primarily due to the input
from researchers from Leuven University, Belgium. Combined with the efforts of the current Dikulushi
Mine geology staff and members of Anvil’s Exploration Department, this has led to an improvement in the
latest resource model.

Item 22. RECOMMENDATIONS

22.1

A drilling programme needs to be designed to test the Dikulushi resource at depth and upgrade the deep
inferred portion of the mineral resource to indicated where possible. On completion of the drilling an
underground mining study should be carried out.

22.2

Further support should be provided to researchers from Leuven University, Belgium, to further enhance our
understanding of the geology at Dikulushi and to establish the precise controls on mineralization. This is
critical for the planning of future exploration programmes in the Lufilian (Kundelungu) Foreland.

22.3

The budget prepared by Anvil to address the recommendations in 22.1 and 22.2 above totals $685,000.

In respect of the drilling programme for 5,000 metres which was commenced in November 2005 the budget
is $600,000 which includes the drilling costs as well as sampling, sample management and control and
assaying. The cost of the underground mining study is estimated at $35,000.

The budget for providing researchers from the Leuven University to enhance the understanding of geology
at Dikulushi is estimated at $50,000 and is expected to include further site visits to the Dikulushi mine and
the environs.

Item 23. REFERENCES

Arnold C.G. & Journet N.C. (2004a): Dkulushi Copper-Silver Project – NI43-101 Technical Report (16th
Feb 2004).

Arnold C.G. (2004b): Dikulushi Copper-Silver Project – Estimate of Mineral Resources (Nov 2004).

GF Consult (2003): Appraisal of the Cu-Co-Ag Mineralisation Potential of the Lufilian Foreland
(Democratic Republic of Congo and Zambia). Internal Anvil Report.

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NI 43-101 Technical Report – Mar 2006
Sintubin, M., Muchez P. & Haest M. (2004): Preliminary Report of the Field Survey at the Dikulushi Mine,
Anvil Mining Congo, Katanga, DRC. Internal Anvil Report from Leuven University, Belgium.

African Mining Consultants (2003): Environmental Impact Assessment Report on Dikulushi Copper-Silver
Project.

African Mining Consultants Ltd (Apr 2003): Anvil Mining Congo SARL “Dikulushi Copper – Silver
Project Environmental Impact Assessment”.

African Mining Consultants Ltd (Dec 2002): Anvil Mining Zambia Limited “Dikulushi Project,
Environmental Project Brief, Nchelenge Port Facility”.

African Mining Consultants Ltd (Dec 2001): Anvil Mining NL “Dikulushi Copper-Silver Deposit,
Environmental Scoping Study”.

African Mining Consultants Ltd (Dec 2001): Anvil Mining NL “Dikulushi Copper-Silver Deposit,
Addendum to Environmental Scoping Study”.

Anvil Mining NL (1998): Dikulushi Copper-Silver Project, Katanga Province, Democratic Republic of
Congo. 1997 Programme of Work: Review of work undertaken and analysis of results.

DevMin Pty Ltd (Oct 2003): Open Pit Mine Plan & Estimate of Open Pit Resources at September 2003,
Dikulushi Copper-Silver Project (DRC).

DevMin Pty Ltd (Sept 2003): Estimate of Mineral Resources at June 2003, Dikulushi Copper-Silver
Project (DRC).

DevMin Pty Ltd (Feb 2004): Anvil Mining Ltd “Dikulushi Copper-Silver Deposit, NI34-101 Technical
Report. February 16, 2004.

JORC (1999): Australasian Code for Reporting of Mineral Resources and Ore Reserves, Effective
September 1999. Prepared by the Joint Ore Reserves Committee of The Australasian Institute of Mining
and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC).

Lemmon T., A. Boutwood and B Turner (2003): The Dikulushi Copper-Silver Deposit, Katanga, DRC. In:
Cailteaux J.L.H.(ed) International Geological Correlation Programme #450. Conference and Workshop,
Lubumbashi, Katanga, DRC.

Metallurgical Design & Management Pty Ltd (2003): Dikulushi Copper-Silver Project Stage II Flotation
project Interim Metallurgical report.

Munro, K.D. & Associates (1998): Dikulushi Copper-Silver Project. Geological Review and Mineral
Resource Estimate for Dikulushi Copper-Silver Project.

National Instrument 43-101 Standards of Disclosure for Mineral Projects (October, 2005).

Resource Management Group (1998): Dikulushi Copper-Silver Project Summary Report for Prefeasibility
Metallurgical Testwork.

Snowden Mining Industry Consultants (1998): Independent Assessment of Diamond and RC Drilling.
Dikulushi Copper Project, DRC.

Voortman, L (1998): Independent Assessment of Diamond and RC Drilling at the Dikulushi Copper
Project. Unpublished Snowden Associates, Report for Anvil Mining NL.

Dikulushi Copper-Silver Mine Page 68

NI 43-101 Technical Report – Mar 2006
Item 24. CONSENT FORMS AND CERTIFICATES

CERTIFICATE of AUTHOR

I, Malcolm Hillbeck, of Anvil Mining Limited, Level 2, 38 Richardson Street, West Perth, WA, 6005
do hereby certify that:
1. I am the Vice President- Operations of Anvil Mining Limited.
2. This certificate relates to the Dikulushi Copper-Silver Mine- Technical Report 6 March 2006 (the
“Technical Report - Dikulushi”).
3. I am:
a) A member of the Aus IMM;
b) I graduated from the University of Birmingham in 1963 with a Batchelor of Science with Honors
in Mining;
b) I have worked as a mining engineer for a total of 43 years since my graduation from university.
4. I have read the definition of “qualified person” set out in National Instrument 43-101 Standards of
Disclosure for Mineral Projects (“NI 43-101”) and certify that by reason of my education, affiliation
with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfil the
requirements to be a “qualified person” for the purposes of NI 43-101.
5. The date and duration of my most recent personal inspection of the property was in January 2006-
from 27 January to 1 February inclusive
6. I am responsible for the sections of the Technical Report – Dikulushi, pertaining to mining, production,
ore processing and resources, being parts 1 to 8, 18, 20 to 23 and 25.
7. I am not independent of Anvil Mining Limited. However, because Anvil Mining Limited is a
“producing issuer” for the purposes of NI 43-101, the Technical Report - Dikulushi is not required to
be prepared by or under the supervision of an independent qualified person.
8. The following is a summary of my prior involvement with the Dikulushi mine: Responsible for the
operation and development of the mine since August 2005
9. I have read the provisions of NI 43-101 and hereby confirm that the technical report - Dikulushi has
been prepared in compliance with NI 43-101.
10. To the best of my knowledge, information and belief, the Technical Report - Dikulushi contains all
scientific and technical information that is required to be disclosed to make the Technical Report -
Dikulushi not misleading.
11. I consent to the filing of the Technical Report - Dikulushi with any stock exchange and other
regulatory authority and any publication by them for regulatory purposes, including electronic
publication in the public company files on their websites accessible by the public, of the Technical
Report - Dikulushi.
Dated this 6th day of March, 2006

Malcolm J Hillbeck

Dikulushi Copper-Silver Mine Page 69

NI 43-101 Technical Report – Mar 2006
 Malcolm James Hillbeck – BSC (Hons) Mining M Aus IMM, MIMMM, C Eng
Anvil Mining Ltd, Level 2, 38 Richardson Street, West Perth, WA, 6005

6 March 2006
British Columbia Securities Commission
Alberta Securities Commission
Saskatchewan Financial Services Commission - Securities Division
The Manitoba Securities Commission
Ontario Securities Commission

Autorité des marchés financiers

Ladies and Gentlemen:

Anvil Mining Limited

I refer to the annual information form dated February 24, 2006 (the “AIF”) of Anvil Mining Limited (the
Company”).

I also refer to the technical report dated 6 March 2006 regarding the Dikulushi Copper-Silver Mine
Technical Report (the “Technical Report”).

I consent to:

a) the public filing of the Technical Report; and

b) reference in the AIF to extracts from, and a summary of, the Technical Report.

I also confirm that I have read the AIF and that the AIF fairly and accurately represents the information in
the Technical Report that supports the disclosure set out in the AIF.

This letter is solely for the information of the addressees and is not to be referred to in whole or in part in
the AIF or any similar document and is not to be relied upon for any other purpose.

Yours truly,

Malcolm Hillbeck

Dikulushi Copper-Silver Mine Page 70

NI 43-101 Technical Report – Mar 2006
 CERTIFICATE of AUTHOR

I, Nicolas Franey, of Anvil Mining Limited, Level 2, 38 Richardson Street, West Perth, WA, 6005
do hereby certify that:
1. I am the Vice President- Exploration of Anvil Mining Limited.
2. This certificate relates to the Dikulushi Copper-Silver Mine- Technical Report 6 March 2006 (the
“Technical Report - Dikulushi”).
3. I am:
a) A member of the Aus Inst Geoscientists;
b) I graduated from the University of Leicester in 1980 with a Batchelor of Science with Honors in
Mining Geology, and from Rhodes University in 1986 with A Master of Science in Mineral
Exploration;
b) I have worked as a geologist for a total of 25 years since my graduation from Leicester University.
4. I have read the definition of “qualified person” set out in National Instrument 43-101 Standards of
Disclosure for Mineral Projects (“NI 43-101”) and certify that by reason of my education, affiliation
with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfil the
requirements to be a “qualified person” for the purposes of NI 43-101.
5. The date and duration of my most recent personal inspection of the property was in February 2006-
from 19 to 21 February inclusive
6. I am responsible for the geology, exploration, drilling and sampling sections of the Technical Report-
Dikulushi- items 9 – 17 inclusive.
7. I am not independent of Anvil Mining Limited. However, because Anvil Mining Limited is a
“producing issuer” for the purposes of NI 43-101, the Technical Report - Dikulushi is not required to
be prepared by or under the supervision of an independent qualified person.
8. The following is a summary of my prior involvement with the Dikulushi mine: technical supervision of
geological services to the operation and regional exploration in the mine environs since January 2006.
9. I have read the provisions of NI 43-101 and hereby confirm that the technical report - Dikulushi has
been prepared in compliance with NI 43-101.
10. To the best of my knowledge, information and belief, the Technical Report - Dikulushi contains all
scientific and technical information that is required to be disclosed to make the Technical Report -
Dikulushi not misleading.
11. I consent to the filing of the Technical Report - Dikulushi with any stock exchange and other
regulatory authority and any publication by them for regulatory purposes, including electronic
publication in the public company files on their websites accessible by the public, of the Technical
Report - Dikulushi.
Dated this 6th day of March, 2006

Nicholas John Franey

Dikulushi Copper-Silver Mine Page 71

NI 43-101 Technical Report – Mar 2006
 Nicholas John Frany – BSC (Hons) Min Geol, MSc Min Expl, M Aust Inst Geoscientists
Anvil Mining Ltd, Level 2, 38 Richardson Street, West Perth, WA, 6005

6 March 2006
British Columbia Securities Commission
Alberta Securities Commission
Saskatchewan Financial Services Commission - Securities Division
The Manitoba Securities Commission
Ontario Securities Commission

Autorité des marchés financiers

Ladies and Gentlemen:

Anvil Mining Limited

I refer to the annual information form dated February 24, 2006 (the “AIF”) of Anvil Mining Limited (the
Company”).

I also refer to the technical report dated 6 March 2006 regarding the Dikulushi Copper-Silver Mine
Technical Report (the “Technical Report”).

I consent to:

a) the public filing of the Technical Report; and

b) reference in the AIF to extracts from, and a summary of, the Technical Report.

I also confirm that I have read the AIF and that the AIF fairly and accurately represents the information in
the Technical Report that supports the disclosure set out in the AIF.

This letter is solely for the information of the addressees and is not to be referred to in whole or in part in
the AIF or any similar document and is not to be relied upon for any other purpose.

Yours truly,

Nicholas John Franey

Dikulushi Copper-Silver Mine Page 72

NI 43-101 Technical Report – Mar 2006
 ABN 50 068 239 487
Affiliated with CSA Australia Ltd Geological Consultants
Level 1, 47 Burswood Rd, Burswood, WA 6100. tel 08 93551677, fax 08 93661977

Gerry Fahey
Principal FinOre Mining Consultants
Level 1, 47 Burswood Road
PO Box 139
Burswood WA 6100
Telephone: +618 9355 1677
Fax: +618 9355 1977

CERTIFICATE of AUTHOR

I, Gerry Fahey, MAIG, MAusIMM (CP) do hereby certify that:

1. I am Principal of:

FinOre Mining Consultants

Level 1, 47 Burswood Road
PO Box 139
Burswood WA 6100

2. I graduated with a Bachelor of Science with Honours in Geology from the National University of
Ireland in 1975. In addition I have an Underground Hard Rock Mining certificate from the
Ontario Ministry of Education, College Standard 1987

3 I am a member of the Australian Institute of Mining and Metallurgy, the Australian Institute of
Geoscientists, and the Joint Ore Reserve Committee (JORC).

4. I have worked as a geologist for a total of 30 years since my graduation from university.

5. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-
101”) and certify that by reason of my education, affiliation with a professional association (as
defined in NI 43-101) and past relevant work experience, I fulfil the requirements to be a
“qualified person” for the purposes of NI 43-101.

Dikulushi Copper-Silver Mine Page 73

NI 43-101 Technical Report – Mar 2006
6. I am responsible for the preparation of the Resource Model and Resource Statement section, being
Item 19, of the technical report titled “Dikulushi Copper-Silver Mine- Technical Report 6 March
2006” (the “Technical Report”) relating to the property. I visited the Dikulushi Project property in
February 2005.

7. I have not had prior involvement with the property that is the subject of the Technical Report.

8. I am not aware of any material fact or material change with respect to the subject matter of the
Technical Report that is not reflected in the Technical Report, the omission to disclose which
makes the Technical Report misleading.

9. I am independent of the issuer applying all of the tests in section 1.5 of National Instrument 43-
101.

10. I have read National Instrument 43-101 and form 43-101F1, and the Technical Report has been
prepared in compliance with that instrument and form.

11. I consent to the filing of the Technical Report with any stock exchange and other regulatory
authority and any publication by them for regulatory purposes, including electronic publication in
the public company files on their websites accessible by the public, of the Technical Report.

Dated this 6th Day of March 2006.

_____________________________
Signature of Qualified Person

Gerry Fahey
__________________________
Print Name of Qualified Person

Dikulushi Copper-Silver Mine Page 74

NI 43-101 Technical Report – Mar 2006
 Gerry Fahey
Principal
FinOre Mining Consultants
Level 1, 47 Burswood Road
PO Box 139
Burswood WA 6100
Telephone: +618 9355 1677
Fax: +618 9355 1977

CONSENT of AUTHOR

TO:

I, Gerry Fahey, do hereby consent to the filing of the written disclosure of the technical report titled
“Dikulushi Copper-Silver Mine- Technical Report 6 March 2006” (the “Technical Report”) and any
extracts from or a summary of the Technical Report in the Annual Information Form of Anvil Mining
Limited, in respect of the year ended December 31, 2005, and to the filing of the Technical Report with the
securities regulatory authorities referred to above.

I also certify that I have read the written disclosure being filed and I do not have any reason to believe that
there are any misrepresentations in the information derived from the Technical Report or that the written
disclosure in the Annual Information Form of Anvil Mining Limited, in respect of the year ended
December 31, 2005 contains any misrepresentation of the information contained in the Technical Report.

Dated this 6th Day of March of 2006.

____________________________
Signature of Qualified Person

Gerry Fahey
____________________________
Print name of Qualified Person

Dikulushi Copper-Silver Mine Page 75

NI 43-101 Technical Report – Mar 2006
Item 25. ADDITIONAL REQUIREMENTS – PRODUCTION PROPERTY

Item 25. (A).1 Mining Method

Mining operations at the Dikulushi Mine are carried out by both Anvil Mining and a contractor under the
supervision of Anvil staff. The Mining Company Katanga (MCK) primary earthmoving fleet comprises a
fleet of 35 tonne to 50 tonne articulated dump trucks. Production drilling is carried out by Anvils two drill
rigs, and blasting services are performed by Anvil personnel with explosives supplied by African
Explosives Zambia Limited from Zambia.

Mining activity is carried out on two 12 hour shifts and equipment operators work a 2 day/2 night and 2
days off roster. Ore loading, assisted by spotters, is highly selective and restricted to day shift only.

Drill and blast is carried out on a 5 metre high bench while drilling ore, and blasting a 10mt bench in waste.
Typical drill and blast patterns comprise 4.75m x 4.0m x 127mm x 10mt with sub drill of 0.5 patterns in
waste, and 4.0m x 3.5m x 127mm x 5mt patterns in ore with 0.5m sub drill, providing overall powder
factors between 0.55kg/m3 and 0.65kg/m3. Presplit drilling has been implemented on the final pit walls to
improve wall conditions and minimise the risk of wall failures.

A list of Anvil’s and the contractor’s mining equipment is given in Table 24 below:

ANVIL DIKULUSHI MINING FLEET

Items of Equipment Numbers
Pantera 1100 production drill 2
Hitachi 650 hydraulic excavator 2
Hitachi 500 hydraulic excavator 1
Komatsu PC 300 hydraulic excavator 1
Komatsu 275 Dozer 1
Cat D8 Dozer 1
Cat 140 G Grader 1
Water Carte 2
Bell Front end Loader 3

DIKULUSHI CONTRACTOR FLEET

Items of Equipment Numbers
Bell 35t articulated dump truck 1
Bell 40t articulated dump truck 12
Bell 50t articulated dump truck 2

Table 24: Dikulushi Mining Equipment

The Hitachi 650 and the Hitachi 500 excavators were purchased new for the project. The trucks have been
operating since November 2004, and over 9 trucks been replaced with new trucks. Overall Anvils
mechanical availability of mobile plant is good at approximately 88%. The hired trucks contract availability
will reach approximately 85% now with the new trucks. Anvils spare parts inventory on site is adequate
with the regular concentrate truck service between the mine and South Africa, available to backload critical
spares if required. Ore is trucked directly to the ROM pad stockpiles, and low grade material and waste are
hauled to respective dumps.

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NI 43-101 Technical Report – Mar 2006
The mining fleet, as described gives production capability of 250,000 bcm/month. The ore produced from
this capability together with the stockpile can supply mill feed at a rate of 520,000 tonnes/year until the end
of 2007.

The layout of the mine is shown in Figure 16.

Dikulushi Copper-Silver Mine Page 77

NI 43-101 Technical Report – Mar 2006
 Tailings
Dam

Mine Village

Waste Treatment Plant

Dump

Open Pit

Airstrip

Figure 16

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NI 43-101 Technical Report – Mar 2006
Item 25. (A).2 Geotechnical Parameters

Geotechnical parameters used for pit optimization and mine design follow recommendations supplied in a
sketch and table from Australian Mining Consultants Pty Ltd (AMC) which listed domains in unweathered
material and specified their maximum overall slope angle and permitted bench design angle. Bench design
angles are based on 5 metre wide berms spaced at 20 metre vertical intervals and take account of the poor
blasting conditions observed in the pit at the time. AMC did comment that with the exception of the strata
in the south-west of the pit, the unweathered rocks have a very high UCS. In order to improve the wall
conditions of the ultimate (stage 3) pit, it is strongly recommended that pre-splitting be practiced from here
onwards.

Geotechnical parameters are summarised in Table 25 and a perspective view of the geotechnical domains
illustrated in Figure 17. The maximum permitted overall angles specified by AMC were practically too
steep in most cases and were flattened to take account of access haul ramps.

AMC Domain Location AMC AMC & SURPAC/ Four-X

Overall Design Four-X Profile
Slope Bench Angle Profile ID Overall
Slope
Weathered Top 30m 40° 50° 7 40°
A East NE 52° 60° 2 42°
A West NW 47° 50° 1 44.5°
B W 45° 50° 5 40°
C SW 40° 50° 6 40°
D SSW 42° 50° 5 40°
E SSE (near fault) 58° 60° 3 41.5°
F SE 58° 60° 4 42°

Table 25: Dikulushi Open Pit Geotechnical Parameters

The Four-X overall slope profiles used for pit optimisation are close to the overall angles provided by the
practical pit designs.

Dikulushi Copper-Silver Mine Page 79

NI 43-101 Technical Report – Mar 2006
 Figure 17: Dikulushi Un-weathered Geotechnical Domains

Item 25. (A).3 Mineral Processing

The three stage crushing circuit utilized for the Stage I HMS Circuit remains as the primary comminution
circuit for the Stage II plant. The crushing plant produces a minus 20mm product for the grinding circuit
feed. The HMS plant was de-commissioned, refurbished and reinstalled at the Kulu Project.

The grinding circuit consists of two overflow ball mills in parallel configuration in closed circuit with a
250mm hydrocyclone. Each ball mill is powered by a 750 kW motor. The grind sizing parameter is 70%
passing 106 microns. The mill is capable of treating 520,000 tonnes of ore per annum.

Both ball mills discharge to a common sump, slurry is pumped to a single 250mm diameter cyclone.
Cyclone underflow gravitates to an Outokumpu SK240 Unit Flotation Cell to recover coarse liberated
copper sulphides, which report direct to final concentrate. Cyclone overflow reports to conditioning and
conventional flotation at 35 % solids. Given the good flotation response from most of the ore types tested,
a relatively simple flotation circuit is in place. The circuit is in two sections; a primary sulphide flotation
and a secondary sulphide/oxide flotation. Collector and frother addition is conventional. (Fig 18)

The splitting of the circuit is due to the presence of oxide minerals in some of the ore blends and require
activation using sodium hydrosulphide to enable them to be recovered. As sodium hydrosulphide can
depress some sulphide minerals, the majority of the sulphide minerals are recovered in the primary sulphide
flotation circuit.

The tailing from the primary sulphide flotation circuit is (if required) sulphidised and the liberated oxides
and additional sulphides are recovered. In the event of the ore blend containing little or no oxides and thus
not requiring sulphidising, the secondary sulphide circuit acts as a sulphide scavenger.

Dikulushi Copper-Silver Mine Page 80

NI 43-101 Technical Report – Mar 2006
Concentrates from the primary and secondary rougher circuits are forwarded to three stages of cleaning.
Cleaner concentrates are directed to the final concentrate thickener and cleaner tailing is recycled to the
head of the roughers.

Figure 18

Dikulushi Copper-Silver Mine Page 81

NI 43-101 Technical Report – Mar 2006
Dikulushi Copper-Silver Mine Page 82
NI 43-101 Technical Report – Mar 2006
The primary rougher circuit has provision for bypassing initial rougher concentrates directly to final
concentrate. Lower grade rougher concentrates reports to the cleaning flotation cells for upgrading.

Final tailing from the secondary rougher circuit is pumped to the tailings storage facility. Supernatant
water is recovered from the tailings dam and recycled to the processing plant.

The circuit is based on a nominal flotation time of 20 minutes in each of the rougher flotation stages and a
minimum 15 minutes in each of the cleaner stages.

Final concentrate is pumped to a thickener, the underflow is pumped to a concentrate storage tank. The
storage tank has sufficient capacity for 8 hour of concentrate production. A filter press with a capacity of
194 tonnes per day and is operated in batch mode. Filter cake discharges directly onto a concrete floor
below the filter where it is recovered/transported to a simple hopper/bagging arrangement with a skid steer
loader. Concentrate is loaded into two tonne capacity bulk bags. Moisture content is near 8%.

The product will be stacked on a concrete floor prior to reclaim by a skid steer loader and bagging. Each
bag will be weighed ready for despatch by truck to the smelter. The concentrate stockpile will have
capacity for approximately 24 hours production.

Item 25. (A).4 Tailings Storage Facilities (TSF)

The first TSF for HMS tailings, designed by Knight Piesold Consulting, South Africa, covers 1.8 hectares
and has been dormant since September, 2004. A predominantly coarse portion of the HMS tailings have
been recovered and processed through the flotation plant. Further processing of this material is dependent
on metallurgical test work conducted at site.

A second TSF, designed by D.E. Cooper and Associates, Australia, was built during 3Q, 2004 to receive
flotation tailings. This facility is located ~100m North of the HMS TSF, covers about 12 hectares and is
12m high on the eastern embankment. With current flotation plant throughput rates, this facility has been
assessed as inadequate for any further extension and is to be abandoned 3Q, 2005 in favour of a new
facility.

A third TSF has been designed by Knight Piesold Consulting, South Africa. This facility is located
adjacent to and north of the second TSF and will cover a 21 hectare area. This dam is a typical hillside
impoundment and will provide the needed area to limit the rise rate of tailings at acceptable norms. Once
the rate of rise has fallen to about 3.5m/year, natural evaporative drying will result in the tailings deposits
losing water from the voids between the tailings particles, thereby achieving good consolidation and
strength gain. At this stage it will be possible to raise the outer confining wall using the tailings itself for
wall building.

Supernatant tailings water is reclaimed via penstock arrangements for use in the processing plant. The
three tailings areas are illustrated in FigureA, the Dikulushi Mine Site Plan.

Item 25. (A).5 Pit Optimization and Mine Design

Mining has been carried out since 2003 according to the pit optimization and mine design described in the
Technical Report of February 16, 2004 which takes the open pit to a depth of 150 metres in three stages.

The stage 1, 2 and 3 designs are set out in Figures 19, 20 and 21. The open pit has been mined to a depth of
95 metres as at December 2005. The operation is therefore committed to this mine design.

The increased mining fleet has increased the mining rate, allowing a higher treatment plant throughput. The
key physical parameters from January 2006 to December 2007 are shown in Table 26 and the production
forecast is shown in Table 27.

Dikulushi Copper-Silver Mine Page 83

NI 43-101 Technical Report – Mar 2006
 Figure 19

Dikulushi Copper-Silver Mine Page 84

NI 43-101 Technical Report – Mar 2006
 Figure 20

Dikulushi Copper-Silver Mine Page 85

NI 43-101 Technical Report – Mar 2006
 Figure 21

Dikulushi Copper-Silver Mine Page 86

NI 43-101 Technical Report – Mar 2006
 Table 26

Dikulushi Copper-Silver Mine Page 87

NI 43-101 Technical Report – Mar 2006
 Table 27

Dikulushi Copper-Silver Mine Page 88

NI 43-101 Technical Report – Mar 2006
The mined grade drops significantly between March and May 2006 because Stage 2 pit is incomplete and
Stage 3 does not reach a depth of 100 metres until the end of May 2006.

Mining volumes are based on an average of 230,000 bcm per month until April 2006 after which they drop
off to an average of 48,000 bcm per month to the end of the pit due to the completion of Stage 3 outback.

The feed grade to the plant has been balanced out in the schedule by balancing the run of mine ore with the
various stockpiles.

All the casting and production estimates have been based on the historical figures largely achieved in 2005
during which the current plant has been operating. Actual costs achieved for 2005 were:

YEAR 2005

Mine gate costs after Ag credits $0.42

Cash costs after Ag credits $0.88

Table 28: Cash Cost of Production 2005- $/lb

Item 25. (B) Recoverability

Metallurgical test work is described in Section 15.1 of this report. Below is a table, Table 29, showing the
performance of the plant from when the current grinding and flotation circuit was installed (July 2005) to
December 2005. This shows a copper recovery of 86.51% which compares to an estimated recovery of
85.7% for the remaining mine life

Table 29

Item 25. (C) Markets

The Dikulushi mine has been producing a flotation copper-silver concentrate since October 2004 when the
flotation plant in Dilukushi was commissioned. This flotation concentrate product replaced the earlier
HMS copper-silver concentrate which is now being sold through off-take contracts to customers in
Namibia, South Africa and for export to Canada and India. The flotation copper-silver concentrate is
similar to the standard type of copper concentrate being marketed throughout the world.

The flotation copper-silver concentrate has been well received by smelters within the established
concentrate market for concentrates which match the metallurgical characteristics of the Dikulushi mine
copper-silver concentrate.

Dikulushi Copper-Silver Mine Page 89

NI 43-101 Technical Report – Mar 2006
Item 25. (D) Contracts

The Dikulushi mine is now an established copper-silver concentrate producer, shipper and exporter. World
copper concentrate sales and transportation agreements are governed by contracts with varying terms based
on benchmarks and delivery points. The Dikulushi mine sales and transportation contracts are within the
typical industry range and provide a sound cash basis for forecasting future costs and cash flows.

Item 25. (E).1 Environmental Status

In accordance with Anvil’s Corporate Environmental Policy and the requirement under the DRC 2002
mining legislation ‘Loi 007/2002 de Julliet 2002, Portant Code Minier’ Anvil completed an Environmental
were prepared by African Mining Consultants. In the absence of DRC guidelines Anvil has adopted the
World Bank Standards and Guidelines as specified in the World Bank Pollution Prevention and Abatement
Handbook, 1998 as the relevant standard. In order to fulfil its corporate guidelines Anvil decided that rather
than adopt a Category “B” project status it would adopt a higher Category “A” status. These standards are
considered to be the international benchmark for environmental assessment. Anvil had conducted in 2001
(prior to the EIA an EMP) Environmental Scoping Studies of both the mining operation and Lake Moero
port facilities. The EMP includes the commitments to mine decommissioning. Annual reporting of
environmental issues and measurements to relevant government bodies is a condition of the operating
license and EMP.

Regular environmental Audits are carried out by AMC Consultants of Zambia to determine the mine’s
compliance with it’s Environmental Plan. The last audit was conducted in October 2005.

An annual Environmental Report was submitted in January 2006.

An environmental monitoring database is maintained at the mine comprising the following:-

• Wet/Dry, Max/Min Temperatures

• Rainfall
• Dust Exposure
• Noise Levels
• Ground and Surface Water Quality
• Ground Water Levels
• Tailings Dam Piezometer Water Levels
• Light Levels

In addition, critical installations such as tailings dams, tailings pipelines, storm and mine water settlers, oil
separators and general cleanliness of facilities are audited on a monthly basis.
Rehabilitation of the east wall of the Number 2 Waste Dump commences during 2005 and vegetation is
strating to propagate.

Process Plant reagents are stored under cover in 12m shipping containers to avoid soil contamination.

A study into the Acid Rock Drainage potential of the process plant tailings was conducted in 2005 and they
were classified as low risk.

Item 25. (E).2 Waste Landform

The waste rock landform is located to the west of the open pit. The landform is being constructed in 8m
high lifts with inter-berm slope angles of 12 degrees to facilitate rehabilitation, revegetation and a stable
slope. A minimum distance of 100 metres is being maintained between the toe of the landform and the edge
of the open pit. Rehabilitation of the landform will be ongoing as areas become available. Characterisation
of waste for potential acid mine drainage has indicated low potential for most materials. A small amount of

Dikulushi Copper-Silver Mine Page 90

NI 43-101 Technical Report – Mar 2006
higher acid forming potential material will be encapsulated within the waste landform to ensure no adverse
environmental impact occurs.

Storm water drains are constructed around the landform and run off is contained or diverted to a
sedimentation pond before discharge to the Dikulushi River. The Dikulushi river is a small creek which
flows only during the wet season.

Item 25. (F) Taxes

The Dikulushi Mining Convention provides for concessionary rates of taxation for each mine. For the first
15 years of production, taxation on adjusted income is applied at a percentage of the Professional Tax Rate,
which is presently 40%, as follows:
% of Professional Tax Effective
Rate Tax Rate
First five years of production ............................................... 0% 0%
Sixth through tenth years of production ............................... 40% 16%
Eleventh through fifteenth years of production.................... 45% 18%
Thereafter ............................................................................. 100% 30%(a)

In addition to the usual deductions of expenses and accruals, the Dikulushi Mining Convention provides
that taxable income is adjusted by allowances for (i) depreciation of moveable and immoveable fixed
assets, (ii) a “depletion allowance” equal to 15% of gross sales up to a maximum of 50% of net profit, and
(iii) all exploration and evaluation expenses.

(a) The Dikulushi Mining Convention holder is entitled to adopt the more favourable effective
fiscal regime, than that granted by the Convention, as and when enacted by subsequent
changes in law.

Item 25. (G) Capital Cost and Operating Cost Estimates

The Dikulushi mine operations have been producing copper-silver concentrates since September 2002
following the commissioning of the HMS process plant. The HMS copper-silver concentrates have been
sold to customers in Namibia and South Africa since the commencement of commercial production.

Reserve estimations contained in this report are based on capital and operating costs typical of the mining
and flotation plant operations of the Dikulushi mine since the flotation plant was commissioned in October
2004. The expenditure forecasts for the remaining life of the open pit operations at the Dikulushi mine are
shown in the Table 27.

The required capital is limited to that necessary to sustain operations at an efficient level and includes
replacement of equipment.

Expenditure levels are typical of the copper mining industry with the exception of high selling costs
(includes transportation and realization) due to the location of the Dikulushi mine in remote DRC. The
expected cash operating costs after silver credits is approximately US$0.75 per pound of copper sold
excluding capital costs and US$0.78 per pound of copper sold including capital costs. These cash
operating costs exclude any amortization of sunk costs.

Capital for mine expansion would be justified on its own merit taking into account future mine life of the
underground resource.

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NI 43-101 Technical Report – Mar 2006
Item 25. (H) Economic Analysis

The quarterly cash flow projections of the remaining open pit life plan are positive and reflect a
conservative copper price of US$3,142 per tonne and silver price of US$5.50 per ounce. The cash flow
projection is shown in Table 27.

The average mining cost is US$3.31 per tonne mined and breakeven mining cost per tonne is US$16.39.
The sensitivity analysis is shown in Table 30. This shows that the remaining life of the open pit operations
is most sensitive to changes in copper price and mine dilution and least sensitive to changes in processing,
mining and fixed costs (Figure 22).

Table 30: Sensitivity Analysis

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NI 43-101 Technical Report – Mar 2006
 Figure 22- Sensitivity Analysis- Spider Chart

Item 25. (I) Payback

At December 2005, the net book value of the assets associated with the Dikulushi mine was US$17.5
million. At an assumed 10% interest rate (used for discounting to arrive at the Net Present Value) the
remaining open pit life cash flow projection in Table 27 shows that a payback is achieved by the fourth
quarter of operations and in less than 12 months.

Item 25. (J) Mine Life

The current mine life of the 150 metre deep open cut and remaining stockpiles is to the end of 2007. The
ore body is open ended below the pit with drill holes showing the ore body extends to at least a depth of
300 metres. The current drilling programme is designed to infill areas down to 300 metres and test the
orebody to a depth of 400 metres. If this is successful an underground mine life of 4-5 years could be
possible. If the underground mine is established further drilling from underground sites could test the
potential below 400 metres. The drilling programme and underground mine design will be completed
during the first half of 2006 allowing underground development and the establishment of underground ore
production before the completion of the open cut.

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NI 43-101 Technical Report – Mar 2006
 Item 26. ILLUSTRATIONS

TABLE No. FIGURE

Drilling Campaigns 1 Location of Dikulushi Mine
Remaining Resource Estimates December 05 2 Mineral Licences of the Dikulushi project
Dikulushi Open Pit Reserves as at Dec 31, 05 3 Regional Geology of SE Katanga Province
Stratigraphy of the Dikulushi Region 4 Geology of Dikulushi Open Pit
Drilling Campaigns 5 Raw Sample Lengths of Dikulushi Drilling
Exploration Sample Data Files 6 Copper Distribution, Main zone
Sample Data Limits 7 Copper Distribution, Hangingwall zone
Sources of Dikulushi Metallurgical Samples with Assays 8 Silver Distribution, Main zone
Model Dimensions 9 Silver Distribution, Hangingwall zone
Cell Parameters 10 Mediam Indicator Variogram – Copper Main Zone
Model Field Descriptions 11 Mediam Indicator Variogram – Copper Hangingwall Zone
Mineralisation Field Codes 12 Mediam Indicator Variogram – Silver Main Zone
Summary Statistics 13 Mediam Indicator Variogram – Silver Hangingwall Zone
High Grade Cuts 14 Swath Plots for Copper and Silver, both domains
Variogram Parameters 15 Grade Tonnage Curve- Measured and Indicated
Search Orientation Domains 16 Layout of the Mine
Search Ellipsoid Dimensions 17 Dikulushi Un-Weathered Geotechnical Domains
Densities of Ore and Waste 18 Dikulushi Copper Mine- Plant- Simplified Flow Sheet
Comparisons of Cut Composite Data 19 Stage 1 Design
Resource Classification Model Code 20 Stage 2 Design
Remaining Resource Estimates December 2005 21 Stage 3 Design
Reconciliation- 2005 Mineral Reserve & Production 22 Sensitivity Analysis- Spider Chart
Dikulushi Open Pit Reserves at Dec 31, 05 23
Dikulushi Mining Equipment 24
Dikulushi Open Pit Geotechnical Parameters 25
Key Parameters- Jan 06 – Dec 07 26
Mine Plan Financial Analysis 27
Cash Cost of Production 2005-$/lb 28
Dikulushi Mine Processing- Performance of the Plant 29
Sensitivity Analysis 30

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