TORONTO, Jan. 10, 2018 /CNW/ - Banro Corporation ("Banro"
or the "Company") (NYSE American - "BAA"; TSX - "BAA") announces
operating results for the fourth quarter ("Q4") of 2017.
HIGHLIGHTS
- Twangiza and Namoya produced a combined 45,197 ounces of gold
during the fourth quarter of 2017, for 2017 annual consolidated
gold production of 178,980 ounces.
- Twangiza produced 36,871 ounces of gold in the fourth quarter
of 2017, for 2017 annual gold production of 109,871 ounces.
- Namoya produced 8,326 ounces of gold in the fourth quarter of
2017, for 2017 annual gold production of 69,109 ounces.
Twangiza Update
Q4 2017's results for Twangiza, in comparison to Q4 2016 and the
third quarter ("Q3") of 2017, are as follows:
Operating
metrics
|
Units
|
Q4
2017
|
Q4
2016
|
%
Change
|
Q3
2017
|
%
Change
|
FULL YEAR
2017
|
FULL YEAR
2016
|
%
Change
|
Total material
mined
|
Tonnes
|
2,763,892
|
1,601,524
|
73%
|
2,841,142
|
-3%
|
10,668,945
|
4,954,407
|
115%
|
Total ore
mined
|
Tonnes
|
506,635
|
500,385
|
1%
|
590,965
|
-14%
|
2,208,446
|
1,999,565
|
10%
|
Total ore
milled
|
Tonnes
|
499,330
|
406,044
|
23%
|
499,570
|
0%
|
1,772,065
|
1,673,179
|
6%
|
Head
grade
|
g/t Au
|
2.75
|
2.85
|
-3%
|
2.45
|
12%
|
2.58
|
2.72
|
-5%
|
Recovery
|
%
|
79.5
|
71.0
|
12%
|
75.1
|
6%
|
73.2
|
72.6
|
1%
|
Strip
ratio
|
t:t
|
4.46
|
2.20
|
102%
|
3.81
|
17%
|
3.83
|
1.48
|
159%
|
Gold
production
|
Ounces
|
36,871
|
26,394
|
40%
|
30,297
|
22%
|
109,871
|
104,437
|
5%
|
Twangiza's gold production in Q4 2017 increased by 22% compared
to Q3 2017, due to having access to enough oxide feed material to
blend with the upper transition (soft non-oxide) material in the
pit. All lower transition and fresh ores mined during the
period have been stockpiled. The annual gold production
achieved in Twangiza represents a 5% increase over 2016's
production.
The process recoveries at Twangiza improved by 6% over Q3 2017
due to there being better blend proportions of both oxide and upper
transition ores being received by the plant. Even though the
annual process recovery was consistent with the previous year, the
benefit of the campaign feeding of the oxide and soft non-oxide
material in H2 2017 overcame the shortfalls realised in H1
2017.
The introduction of new and matching fleet at Twangiza during
the first half of 2017 into its production line enabled the mine to
move a record historical annual total material. This offered
the opportunity to process enough suitable material through the
plant in H2 2017.
Namoya Update
Q4 2017 results for Namoya, in comparison to Q4 2016 and Q3
2017, are as follows:
Operating
metrics
|
Units
|
Q4
2017
|
Q4
2016
|
%
Change
|
Q3
2017
|
%
Change
|
FULL YEAR
2017
|
FULL YEAR
2016
|
%
Change
|
Total material
mined
|
Tonnes
|
0
|
2,950,552
|
-100%
|
2,659,570
|
-100%
|
7,282,882
|
9,546,622
|
-24%
|
Total ore
mined
|
Tonnes
|
0
|
666,037
|
-100%
|
494,880
|
-100%
|
1,516,045
|
2,100,343
|
-28%
|
Total ore
stacked
|
Tonnes
|
0
|
661,911
|
-100%
|
491,833
|
-100%
|
1,578,433
|
2,217,514
|
-29%
|
Head
grade
|
g/t Au
|
0.00
|
1.78
|
-100%
|
1.72
|
-100%
|
1.89
|
1.89
|
0%
|
Recovery
|
%
|
0.0
|
57.8
|
-100%
|
76.9
|
-100%
|
76.5
|
56.57
|
35%
|
Strip
ratio
|
t:t
|
0.00
|
3.43
|
-100%
|
4.37
|
-100%
|
3.80
|
3.55
|
7%
|
Gold
production
|
Ounces
|
8,326
|
24,054
|
-65%
|
18,533
|
-55%
|
69,109
|
93,253
|
-26%
|
Namoya's gold production in Q4 2017 decreased by 55% as compared
to Q3 2017, due to the suspension of its mining operations
throughout Q4 2017 (reference is made to Banro's press release
dated September 25, 2017).
Spraying of the heap leach section at Namoya continued
throughout Q4 2017 enabling the recovery of 8,326 ounces of gold
from the processed ore which had been stacked before mining
operations were suspended. The annual gold production
achieved is 26% lower than the previous year's production.
The suspension of the mining operations prevented the
realisation of any benefits from the additions to the primary fleet
installed during Q3 2017.
Mining operations at Namoya recommenced in January 2018 (reference is made to Banro's press
release dated January 3, 2018).
Qualified Person
Daniel K. Bansah, the Company's Head
of Projects and Operations and a "qualified person" as such term is
defined in National Instrument 43-101, has approved the technical
information in this press release.
Corporate Update
As reported in the Company's December 22,
2017 press release, the Company has commenced restructuring
proceedings under the Companies' Creditors Arrangement Act
("CCAA") pursuant to an initial order granted by the Ontario
Superior Court of Justice (Commercial List) on December 22, 2017 (the "Initial
Order"). Pursuant to the Initial Order, the Company has
obtained protection from its creditors under the CCAA for an
initial period expiring January 19,
2018, and approval of interim financing of up to
US$20 million. The Company also
reported in its December 22, 2017
press release that it has entered into a support agreement with
major stakeholders representing in excess of 74% of claims for the
support of a recapitalization plan (the "Recapitalization
Plan") to be implemented by the end of March or mid-April 2018, in the event that a superior
transaction is not identified and implemented under a CCAA
court-approved sales and investment solicitation process (the
"SISP") anticipated to commence on or around January 22, 2018. A copy of the said
support agreement (and detailed recapitalization term sheet) can be
found on Banro's SEDAR profile. All debt and other
obligations of Banro within the Democratic Republic of the Congo (the
"DRC") will be unaffected under the Recapitalization
Plan. It is expected that the Company's operations in the DRC
will continue in the ordinary course of business and that
obligations to DRC lenders, employees and key suppliers of goods
and services, both during the CCAA proceedings and after the
reorganization is completed, will continue to be met on an ongoing
basis.
Banro Corporation is a Canadian gold mining
company focused on production from the Twangiza and Namoya mines,
which began commercial production in September 2012 and January
2016 respectively. The Company's longer-term objectives
include the development of two additional major, wholly-owned gold
projects, Lugushwa and Kamituga. The four projects, each of
which has a mining license, are located along the 210 kilometres
long Twangiza-Namoya gold belt in the South Kivu and Maniema
provinces of the DRC. All business activities are followed in
a socially and environmentally responsible manner.
Cautionary Note Concerning Forward-Looking
Statements
This press release contains
forward-looking statements. All statements, other than statements
of historical fact, that address activities, events or developments
that the Company believes, expects or anticipates will or may occur
in the future (including, without limitation, statements
regarding the CCAA proceedings, the restructuring process
and the ability of the Company to meet its obligations, the ability
of the Company to implement financing or other appropriate
strategic transactions as part of the ongoing process, the
Company's liquidity and ability to meet payment obligations and the
timing of meeting such payment obligations, the Company's
intentions for the future of its business operations and long-term
strategy, and the Company's commitment to its employees and
suppliers) are forward-looking statements. These
forward-looking statements reflect the current expectations or
beliefs of the Company based on information currently available to
the Company. Forward-looking statements are subject to a
number of risks and uncertainties that may cause the actual results
of the Company to differ materially from those discussed in the
forward-looking statements, and even if such actual results are
realized or substantially realized, there can be no assurance that
they will have the expected consequences to, or effects on the
Company. Factors that could cause actual results or events to
differ materially from current expectations include, among other
things, the possibility that the Company will be unable to
implement the restructuring or obtain advances under the interim
financing due to the failure of one or more of the conditions
precedent to be satisfied, or that the SISP will be
unsuccessful. In addition, actual results or events
could differ materially from current expectations due to
instability in the eastern DRC where the Company's mines are
located; political developments in the DRC; uncertainties
relating to the availability and costs of financing or other
appropriate strategic transactions; uncertainty of estimates
of capital and operating costs, production estimates and estimated
economic return of the Company's projects; the possibility that
actual circumstances will differ from the estimates and assumptions
used in the economic studies of the Company's projects; failure to
establish estimated mineral resources and mineral reserves (the
Company's mineral resource and mineral reserve figures are
estimates and no assurance can be given that the intended levels of
gold will be produced); fluctuations in gold prices and currency
exchange rates; inflation; gold recoveries being less than
expected; changes in capital markets; lack of infrastructure;
failure to procure or maintain, or delays in procuring or
maintaining, permits and approvals; lack of availability at a
reasonable cost or at all, of plants, equipment or labour;
inability to attract and retain key management and personnel;
changes to regulations affecting the Company's activities; the
uncertainties involved in interpreting drilling results and other
geological data; and the other risks disclosed under the heading
"Risk Factors" and elsewhere in the Company's annual report on Form
20-F dated April 2, 2017 filed on
SEDAR at www.sedar.com and EDGAR at www.sec.gov. Any
forward-looking statement speaks only as of the date on which it is
made and, except as may be required by applicable securities laws,
the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Although the Company
believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance
should not be put on such statements due to the inherent
uncertainty therein. The forward-looking statements
contained in this press release are expressly qualified by this
cautionary note.
SOURCE Banro Corporation