Banro increases and upgrades mineral resources at Namoya
September 07 2006 - 9:00AM
PR Newswire (US)
TORONTO, Sept. 7 /PRNewswire-FirstCall/ -- Banro Corporation
("Banro" or the "Company") (AMEX - "BAA"; TSX - "BAA") is pleased
to announce an updated mineral resource estimate at its
wholly-owned Namoya project of 691,000 ounces of gold (7,386,000
tonnes grading 2.91 g/t Au) in the Indicated Mineral Resource
category and 583,000 ounces of gold (4,829,000 tonnes grading 3.76
g/t Au) in the Inferred Mineral Resource category. The current
Indicated Mineral Resource estimate for Namoya represents an
increase of 58% from the previous Indicated Mineral Resource
estimate originally announced by Banro in a press release dated
July 22, 2005. This increase, together with the new Inferred
Mineral Resources delineated at Namoya, results from a core
drilling program of 9,442.21 metres (70 diamond drill holes) which
was completed during the period September 2005 to July 2006.
Drilling continues at Namoya with the goal of adding to the
Company's mineral resources. The following table summarises the
current mineral resource estimates for the various deposits at
Namoya, as of August 16, 2006.
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Indicated Inferred
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DEPOSITS Tonnes Au Ounces(x) Tonnes Au Ounces(x) (g/t) (g/t)
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Mwendamboko 3,119,000 3.48 349,000 2,319,000 4.57 341,000 Kakula
2,539,000 2.70 220,000 749,000 3.19 77,000 Namoya Summit 1,728,000
2.19 122,000 1,051,000 2.32 78,000 Muviringu(xx) 710,000 3.80
87,000
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Totals 7,386,000 2.91 691,000 4,829,000 3.76 583,000
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Ounces(x) rounded to the nearest '000 (using a 1.0 g/t Au cut-off).
Muviringu(xx) Inferred Resource based on previously announced
estimate undertaken by independent consultants Steffen, Robertson
and Kirsten (UK) Ltd. in February 2005. An approximate drill
spacing of 40 metres along strike and 40 metres down dip have been
used to calculate the Indicated Mineral Resources. The Indicated
Mineral Resources have been determined to average vertical depths
of 113 metres at Mwendamboko, 151 metres at Kakula and 166 metres
at Namoya Summit. The mineral resources were calculated from core
drilling and the earlier adit sampling undertaken at Mwendamboko,
Kakula and Namoya Summit. Gold grades have been determined using
ordinary kriging into a 3-Dimensional block model constrained by
wireframes. The ore body models were constrained within the
wireframe with primary block dimensions of 10 metres along the
strike and cross structure directions, and 5 metres in the vertical
direction. Higher-grade values for the various mineral domains have
been statistically cut in a range from 5 to 55 g/t Au with their
spatial occurrence verified in relation to the surrounding samples.
Tonnages and grades are reported using a 1.0 g/t Au cut-off.
Commenting on these results at Namoya, Peter Cowley, President and
C.E.O. of the Company, said: "The significant increase of 58% in
the Indicated Resources at Namoya is encouraging, especially since
these resources are found close to surface and are likely to be
mineable by open pit. In addition, infill drilling of the Inferred
Resource should result in additional Inferred Resources being
upgraded to the Indicated Resource category and also being within
pit optimised shells. These results, as well as the previously
announced excellent metallurgical recoveries, will be incorporated
into the scoping study expected to be undertaken later this year.
We are also continuing with our prospect evaluation to outline
additional resources at Namoya." Drill cores for assaying were
taken at a maximum of one metre intervals and were cut with a
diamond saw with one-half of the core placed in sealed bags and
sent to the Company's sample preparation facility in Bukavu,
Democratic Republic of the Congo. The core samples were then
crushed down to minus 2 mm, split with half the sample then being
pulverised down to minus 75 microns. A portion of the pulverised
sample was then shipped to the SGS Laboratory in Mwanza, Tanzania
or ALS Chemex in Johannesburg, South Africa (which are both
independent of the Company) 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. A total of 1,471
relative density measurements were taken from drill core at the
deposits to convert volumes into tonnages. The mineral resource
estimates for Namoya disclosed in this press release have been
prepared in accordance with National Instrument 43-101 ("NI
43-101") based on information compiled by Banro's Mineral Resources
Manager, Daniel Bansah, who is a Member of The Australasian
Institute of Mining and Metallurgy (Aus.I.M.M). Mr. Bansah has over
17 years experience in the determination of gold mineral resources
and is a "qualified person" as such term is defined in NI 43-101.
Mr. Bansah has reviewed and approved the contents of this press
release. Additional information with respect to the Namoya property
is contained in the technical report of Michael B. Skead (who is
the Company's Vice President of Exploration and a "qualified
person" as such term is defined in NI 43-101) dated March 30, 2006,
and entitled "NI 43-101 Technical Report, Namoya Project, Maniema
Province, Democratic Republic of the Congo." A copy of this report
can be obtained from SEDAR at http://www.sedar.com/. Exploration at
Namoya is being conducted under the supervision of Mr. Skead. 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 Democratic Republic of the Congo. 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. 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
by the Company, such as "measured", "indicated", and "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 # 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. 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 estimation of mineral
resources and the Company's exploration and development plans with
respect to Namoya) 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, failure to establish estimated mineral resources, the
preliminary nature of metallurgical results, changes in world gold
markets and equity markets, political developments in the
Democratic Republic of the Congo, 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. 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 mineral resource
figures disclosed in this press release are estimates and no
assurances can be given that the indicated levels of gold will be
produced. Such estimates are expressions of judgment based on
knowledge, mining experience, analysis of drilling results and
industry practices. Valid estimates made at a given time may
significantly change when new information becomes available. While
the Company believes that the resource estimates included in this
press release are well established, by their nature resource
estimates are imprecise and depend, to a certain extent, upon
statistical inferences which may ultimately prove unreliable.
Mineral resources are not mineral reserves and do not have
demonstrated economic viability. There is no certainty that mineral
resources can be upgraded to mineral reserves through continued
exploration. 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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