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.
