Dikulushi Cut-Back Project Mining Services Contract Awarded
PERTH, AUSTRALIA and TORONTO, ONTARIO -- (Marketwire) -- 11/03/11 -- Mawson West Ltd. (TSX: MWE) ('Mawson West') is pleased to announce that it has awarded the mining services contract for the development of the pit cut-back at its Dikulushi copper-silver project to Mining Company Katanga SPRL ('MCK'). The award of the mining services contract to MCK follows Mawson West's previously announced positive feasibility study results supporting the development of the pit cut-back.
The total value of the mining services contract is estimated to be approximately US$50 million and will be funded from Mawson West's existing cash reserves and cash-flow from operations.
Commercial production from the Dikulushi cut-back project is expected to commence in mid-2012 and will continue for a period of about 12 to 14 months to produce in total approximately 29,000 tonnes of copper and 2.8 moz of silver in concentrate.
Mawson West has been operating the Dikulushi processing plant since July 2010 when it commenced treatment of a low-grade stockpile from which it produces approximately 350-400 tonnes of copper and about 32,000 oz of silver per month in concentrate. Processing of the low-grade stock pile is expected to be completed in December 2011, after which it is intended that material from satellite deposits will be processed until ore material from the Dikulushi cut-back project is available.
The Dikulushi copper-silver project, located in the south-eastern corner of the Democratic Republic of the Congo, is owned and operated by Mawson West's 90% owned subsidiary Anvil Mining Congo SARL (to be renamed CMCC SARL) ('AMC').
About Mawson West Ltd.
Mawson West Ltd. is an Australian-based copper producer, developer and explorer. Mawson West's current focus is on the Democratic Republic of the Congo ('DRC'), and its major asset is its 90% ownership of the tenements that are governed by the Dikulushi Mining Convention and which are held by AMC. The Dikulushi Mining Convention is an agreement between AMC and the DRC Government, dated January 31, 1998 and ratified by Presidential Decree on February 27, 1998, which sets out the regulatory and fiscal regime applicable to AMC's mining interests in the DRC. The tenements cover a land package of approximately 7,300 km2 and encompasses Mawson West's two main projects, the Dikulushi copper-silver mine and the Kapulo copper exploration and development project, as well as multiple exploration targets. Mawson West's principal objectives are to expand copper production at the Dikulushi mine, commence copper production at the Kapulo project and further explore the areas governed by the Dikulushi Mining Convention to identify new targets, as well as expand its operations globally.
Contacts:
Mawson West Ltd.
David Frances
President and Chief Executive Officer
61 8 9321-9669
61 8 9481-2394 (FAX)
dfrances@mawsonwest.com
