Banro increases indicated mineral resource at Namoya by 36% to 938,800 ounces of gold; Inferred resource increases to 621,500 ou
June 08 2007 - 11:43AM
PR Newswire (US)
TORONTO, June 8 /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 Namoya project in the Democratic Republic of the Congo
(the "DRC"). - Indicated Mineral Resource has increased by
approximately 36% to 938,800 ounces of gold (8.925 million tonnes
grading 3.27 g/t Au). - Inferred Mineral Resource has increased by
approximately 7% to 621,500 ounces of gold (7.074 million tonnes
grading 2.73 g/t Au). This significant increase in the Indicated
Mineral Resource at Namoya results from additional core drilling of
7,411.53 metres (36 drill holes) which has been completed since the
previous Namoya mineral resource determination (see the Company's
press release dated September 7, 2006). Mineral Resources have been
determined for the Mwendamboko, Kakula, Namoya Summit and Muviringu
deposits which occur along a two kilometre mineralized shear zone
at Namoya. Table I below summarises the current Mineral Resource
estimates at Namoya (with an effective date of June 8, 2007): Table
I --------------------------------------------------------- Mineral
Au Resource Category Tonnes (g/t) Ounces
--------------------------------------------------------- Indicated
8,925,000 3.27 938,800
--------------------------------------------------------- Inferred
7,074,000 2.73 621,500
--------------------------------------------------------- (Using a
1.0 g/t Au cut-off). Tonnes rounded to the nearest '000 and ounces
to the nearest '00. Table II below summarises the Mineral Resource
estimates at Namoya in terms of oxide, transitional and fresh rock
(sulfide) categories. Table II
--------------------------------------------------------------------
Material Indicated Inferred Type Au Au Tonnes (g/t) Ounces Tonnes
(g/t) Ounces
--------------------------------------------------------------------
Oxide 6,409,000 3.07 632,300 1,407,000 2.06 93,100 Transitional
2,152,000 3.50 242,100 2,040,000 2.22 145,800 Fresh Rock 364,000
5.50 64,400 3,627,000 3.28 382,600
--------------------------------------------------------------------
Total 8,925,000 3.27 938,800 7,074,000 2.73 621,500
--------------------------------------------------------------------
(Using a 1.0 g/t Au cut-off). Tonnes rounded to the nearest '000
and ounces to the nearest '00. The Mineral Resources were
calculated from the current and previous core drilling programs as
well as previous adit information. Gold grades, other than gold
grades in the Muviringu model, have been determined using ordinary
kriging interpolation algorithm into a 3-Dimensional block model
constrained by mineralization wireframes. Gold grades in the
Muviringu model (with an Inferred Mineral Resource of 2,656,000
tonnes grading 2.62 g/t Au and containing 224,000 ounces of gold)
were determined using the weighted inverse distance squared method.
The mineralization 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 have been statistically capped to between 5 g/t
Au and 100 g/t Au based on the mineralized domain. The improved
geological knowledge, coupled with the increased data density, the
continuity of the mineralization and the increased reliability of
the database, have allowed resources to be classified with higher
confidence. 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 36%
increase in the Indicated Mineral Resource category is encouraging
with a high degree of conversion from the Inferred Mineral Resource
category. These results are currently being incorporated into a
Preliminary Assessment (scoping) study being carried out for
Namoya. We expect to announce the results of this study later this
month. "Recent testwork for the oxide, transitional and fresh rock
(sulfide) have indicated excellent metallurgical recoveries
exceeding 90%; a conventional CIL (carbon-in-leach) process plant
is being scoped for the project. In addition, our exploration
program is continuing at Namoya and additional targets are being
drill tested. "Elsewhere on our properties in the DRC, a
Preliminary Assessment is being undertaken on the much larger
Twangiza project, which is also 100%-owned by Banro. This study is
expected to be completed in July." 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, DRC.
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 (which is independent of the Company) in Mwanza,
Tanzania 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 recognized 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 18 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. Additional
information with respect to the Namoya project is contained in the
technical report of Michael B. Skead (who is the Company's Vice
President, Exploration and a "qualified person" as such term is
defined in NI 43-101) dated March 30, 2007, and entitled "Third 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 (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 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. 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, potential mineralization, potential mineral resources
and the Company's exploration and development plans and objectives
with respect to its properties) 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, gold
recoveries for Namoya being less than those indicated by the
metallurgical testwork carried out to date (there can be no
assurance that gold recoveries in small scale laboratory tests will
be duplicated in large tests under on-site conditions or during
production), 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
geological 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. If
such estimates are inaccurate or are reduced in the future, this
could have a material adverse impact on the Company. 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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