Banro extends gold mineralization at Lugushwa and commences 5,000 metre drilling program
February 01 2006 - 8:00AM
PR Newswire (US)
Trench results include 25.6 metres grading 2.81 g/t Au, 16 metres
at 2.45 g/t Au and 12 metres at 2.05 g/t Au TORONTO, Feb. 1
/PRNewswire-FirstCall/ -- Banro Corporation ("Banro" or the
"Company") (AMEX - "BAA"; TSX - "BAA") is pleased to announce
further exploration results from the Company's wholly-owned
Lugushwa project, located on the Twangiza-Namoya gold belt in the
Democratic Republic of the Congo (the "DRC"). Trench results
received from the Carriere A prospect at Lugushwa include 25.6
metres averaging 2.81 g/t Au in trench CAT3, 16 metres at 2.45 g/t
Au from trench CAT2 and 12 metres grading 2.05 g/t Au from trench
CAT4. Soil geochemistry and trenching has now extended the
mineralised zone for a total of 4,500 metres. The significant new
Lugushwa trench results received are summarised in the table below.
A locality plan is found accompanying this press release on the
Company's website, at
http://www.banro.com/i/pdf/2006-02-01_NRM.pdf. TRENCH RESULTS
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PROSPECT TRENCH No. FROM TO LENGTH GRADE
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(metres) (metres) (metres) (g/t)
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Carriere A CAT 1 65.0 74.0 9.0 0.82
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113.5 119.0 5.5 2.62
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CAT 2 36.0 51.0 16.0 2.45
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CAT 3 21.4 47.0 25.6 2.81
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CAT 4 38.0 50.0 12.0 2.05
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The geological setting of the mineralization at Carriere A consists
of chloritic schists with minor intercalation of quartzites and
graphitic schists. Mineralized quartz veins occur as a network of
interlocking conjugate sets with trends oriented from NE-SW and E-W
to ESE-WNW with steep dips towards the SW and NW, and moderate dips
towards the north respectively. A total of 447.3 metres of
trenching was carried out in Carriere A with the collection of 464
channel samples for analysis. The soil anomaly to the south of the
G20/21 prospect has been further extended by an additional 1,280
metres (Carriere A prospect). A total of 648 soil samples were
collected to extend the open ended soil anomaly to the southwest.
Soil geochemical results received to date from Lugushwa highlight a
prominent 2,000 metres long anomaly ( greater than 100ppb) from the
Carriere A to the south of G20/21. The soil anomaly then turns
northwards for a further 1,200 metres to the G20/21 and D18/19
prospects and then trends northeast for a further 1,300 metres to
include the Kimbangu prospect (see the locality plan referred to
above). The Carriere A soil anomaly represents a new grassroots
discovery and is not associated with any previous mining activity.
The mineralized trend identified from the soil geochemistry and
trenching now totals 4,500 metres and remains open to the
southwest. The above trench sampling was undertaken at
approximately one metre intervals along the trenches and the assay
composites are uncut. Soil sampling was undertaken at 40 metres
along lines 160 metres apart. Soil and trench samples were prepared
at the Company's sample preparation facility in Bukavu, DRC. Soil
samples were dried and sieved while the trench samples were dried,
crushed down to minus 2mm and split with half the sample then being
pulverised down to minus 75 microns. A portion of the sieved and
pulverised samples were then shipped to the ALS Chemex Laboratory
(which is independent of the Company) in Johannesburg, South Africa
where the samples were analysed for gold by fire assay using a 50 g
sample. As part of the Company's QA/QC procedures, internationally
recognised standards, duplicates and blanks were inserted into the
sample batches. In addition, sample pulps with known grades from
the ALS Chemex Laboratory in Johannesburg were also submitted to
other third party laboratories for quality control purposes.
Trenching, geological mapping and geochemical sampling are
continuing at the Lugushwa prospects to fully outline the
mineralized trends. In addition, a core rig has now commenced
drilling at the G20/21 prospect as part of an initial 5,000 metre
drilling program. A previous study by independent geological
consultants Steffen, Robertson and Kirsten (UK) Ltd. ("SRK") on
historic data at Lugushwa outlined an Inferred Mineral Resource of
37,000,000 tonnes grading 2.3 g/t Au, equivalent to 2,735,000
ounces of gold. Reference is made to SRK's technical report dated
February 2005 entitled "NI 43-101 Technical Report Resource
Estimation and Exploration Potential at the Kamituga, Lugushwa and
Namoya Concessions, Democratic Republic of Congo", a copy of which
can be obtained from SEDAR at http://www.sedar.com/ and from the
Company's website at http://www.banro.com/. Commenting on these new
results at Lugushwa, Peter Cowley, President and C.E.O. of the
Company, said: "These trench and soil results continue to further
extend the mineralized trend at Lugushwa by discovering new
grassroots prospects such as Kimbangu and Carriere A. To date, we
have delineated a 4,500 metre long mineralized trend, which remains
open to the southwest. The drilling program which has now started
will target this significant mineralised trend." Banro is a
Canadian-based gold exploration company focused on the development
of four major, wholly-owned gold projects along the 210 kilometre-
long Twangiza-Namoya gold belt in the South Kivu and Maniema
provinces of the DRC. Led by a proven management team with
extensive gold and African experience, Banro's strategy is to
unlock shareholder value by increasing and developing its
significant gold assets in a socially and environmentally
responsible manner. Qualified Person The exploration results
disclosed by this press release have been reviewed, verified
(including sampling, analytical and test data) and compiled by the
Company's geological staff based in Bukavu, DRC under the
supervision of Michael Skead (Aus.I.M.M), the Company's Vice
President of Exploration, who is a "qualified person" (as such term
is defined in National Instrument 43-101). Cautionary Note to U.S.
Investors: The United States Securities and Exchange Commission
(the "SEC") permits U.S. mining companies, in their filings with
the SEC, to disclose only those mineral deposits that a company can
economically and legally extract or produce. Certain terms are used
in this press release, such as "inferred" "resources", that the SEC
guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC. U.S. Investors are urged
to consider closely the disclosure in the Company's Form 40-F
Registration Statement, File No. 001-32399, which may be secured
from the Company, or from the SEC's website at
http://www.sec.gov/edgar.shtml. Forward-Looking Statements: This
press release contains forward-looking statements that are based on
the Company's current expectations and estimates. Forward-looking
statements are frequently characterized by words such as "plan,"
"expect," "project," "intend," "believe," "anticipate", "estimate"
and other similar words or statements that certain events or
conditions "may" or "will" occur, and include without limitation,
statements regarding potential mineralization and resources,
exploration results and future plans and objectives of the Company.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual events or
results to differ materially from estimated or anticipated events
or results implied or expressed in such forward-looking statements.
Factors that could cause such differences include changes in world
gold markets and equity markets, political developments in the DRC,
changes to regulations affecting the Company's activities,
uncertainties relating to the availability and costs of financing
needed in the future, the uncertainties involved in interpreting
drilling results and other ecological data and the other risks
involved in the gold exploration and development industry. 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. 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. DATASOURCE: Banro Corporation CONTACT: please
visit our website at http://www.banro.com/, or contact: Peter
Cowley, President and C.E.O., United Kingdom, Tel: (44)
790-454-0856; Arnold T. Kondrat, Executive Vice-President, Toronto,
Ontario; or Martin Jones, Vice-President, Corporate Development,
Toronto, Ontario, Tel: (416) 366-2221 or 1-800-714-7938
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