Banro announces significant increase in gold resources at Twangiza
September 28 2006 - 9:11AM
PR Newswire (US)
TORONTO, Sept. 28 /PRNewswire-FirstCall/ -- Banro Corporation
("Banro" or the "Company") (AMEX - "BAA"; TSX - "BAA") is pleased
to announce the following updated Mineral Resource estimates at its
wholly-owned Twangiza project in the Democratic Republic of the
Congo. - Inferred Mineral Resources have increased by 230% to 3.878
million ounces of gold (62.3 million tonnes grading 1.93 g/t Au) -
Measured and Indicated Mineral Resources now stand at 2.024 million
ounces of gold (21.6 million tonnes grading 2.92 g/t Au) This
increase in Mineral Resources at Twangiza results from a core
drilling program of 6,421 metres (33 diamond drill holes) which
commenced in February 2006. Drilling is continuing and has been
accelerated with an increase to four diamond core rigs at Twangiza
with the goal of adding to and upgrading these Mineral Resources.
Table I below summarises the current Mineral Resource estimates at
Twangiza, as of September 27, 2006. Table I Mineral Resource
Category Tonnes Au Ounces (g/t) Measured 4,803,000 3.50 540,000
Indicated 16,794,000 2.75 1,484,000 Measured & Indicated
21,596,000 2.92 2,024,000 Inferred 62,338,000 1.93 3,878,000 (Using
a 1.0 g/t Au cut-off). Table II below summarises the Mineral
Resource estimates at Twangiza in terms of oxide, transitional and
fresh rock (sulphide) categories. Table II Material Type Measured
& Indicated Inferred Tonnes Au Ounces Tonnes Au Ounces (g/t)
(g/t) Oxide 13,894,000 2.83 1,266,000 4,136,000 1.90 253,000
Transitional 7,703,000 3.06 758,000 24,595,000 2.00 1,581,000
Sulphide 33,606,000 1.89 2,044,000 Total 21,597,000 2.92 2,024,000
62,338,000 1.93 3,878,000 (Using a 1.0 g/t Au cut-off). The Mineral
Resources at Twangiza have been determined to vertical depths
varying from 160 metres below surface in the north end of the
deposit to 400 metres in the south, following the plunge of the
mineralization. The Mineral Resources were calculated from the
current and previous core drilling programs as well as previous
adit information. Gold grades in the Measured and Indicated
Resource categories have been determined using ordinary kriging
into a 3-Dimensional block model constrained by wireframes. Gold
grades in the Inferred Resource category have been determined using
weighted inverse distance squared. The mineralization models were
constrained within the wireframe with primary block dimensions of
20 metres along the strike and cross structure directions, and 10
metres in the vertical direction. Higher-grade values in the oxide
and transitional material have been statistically capped to 30 g/t
Au while in the sulphide material higher-grade values have been
statistically capped to 20 g/t Au. Tonnages and grades are reported
using a 1.0 g/t Au cut-off. Commenting on these results at
Twangiza, Peter Cowley, President and C.E.O. of the Company, said:
"The significant increase in the total resource base at Twangiza is
very encouraging and demonstrates the potential for the project to
develop into a major open pit gold mining operation with a
significant component being in good grade, near surface, oxide and
transitional material. Our drilling at Twangiza is now focusing on
converting the Inferred Resource into the Indicated Resource
category and locating additional Inferred Resources. These results
will be incorporated into the scoping study which we expect to
undertake by year end." 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. The Mineral Resource estimates
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. Independent geological
consultants, SRK Consulting (UK) Ltd., have reviewed the estimation
method and concur with the approach used by Banro. A detailed, NI
43-101 technical report on Twangiza, including the updated Mineral
Resource estimates disclosed by this press release, will be filed
on SEDAR and on the Company's website within 45 days of this press
release. Additional information with respect to the Twangiza
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, Twangiza
Project, South Kivu Province, Democratic Republic of the Congo." A
copy of this report can be obtained from SEDAR at
http://www.sedar.com/. Exploration at Twangiza is being conducted
under the supervision of Mr. Skead (Aus.I.M.M). 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 Twangiza) 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, 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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