Banro Continues Drilling Wide Zones of Gold Mineralization and Intersects New Zone at Twangiza
Drilling results include 131.81 metres grading 2.25 g/t Au, 96.34 metres grading 2.49 g/t Au, 78.44 metres grading 2.16 g/t Au, 61.00 metres grading 3.62 g/t Au and 41.56 metres grading 4.68 g/t Au
Toronto, Canada - December 14, 2006 - Banro Corporation (“Banro” or the “Company”) (AMEX - “BAA”; TSX - “BAA”) is pleased to announce further results from the Company’s current core drilling program at its wholly-owned Twangiza project, located on the Twangiza-Namoya gold belt in the Democratic Republic of the Congo (the “DRC”).
Assay results have been received for an additional 20 core holes drilled at Twangiza.
Twangiza Main Zone
Hole TDD041 intersected 24.10 metres grading 2.49 g/t Au from 93.00 metres Hole TDD042 intersected 78.44 metres grading 2.16 g/t Au from 14.56 metres Hole TDD054 intersected 131.81 metres grading 2.25 g/t Au from 0.00 metres Hole TDD058 intersected 96.34 metres grading 2.49 g/t Au from 0.00 metres and 40.89 metres grading 2.45 g/t Au from 110.6 metres Hole TDD061 intersected 53.18 metres grading 2.70 g/t Au from 51.0 metres and 61.00 metres grading 3.62 g/t Au from 120.0 metresKashegeshe (New Mineralised Zone)
Hole TDD050 intersected 41.56 metres grading 4.68 g/t Au from 40.00 metres Hole TDD047 intersected 3.65 metres grading 46.43 g/t Au from 61.95 metres and 3.00 metres grading 8.51 g/t Au from 45.71 metresCore holes were inclined at between minus 50 and 55 degrees and averaged 264.5 metres in depth with a maximum of 497.1 metres down the hole. Core recovery for these holes averaged 95% within the mineralized zones. It is estimated that the true widths of the mineralized zones are approximately 90% of the intersected widths in the holes.
All core holes were drilled within the Main Twangiza deposit except TDD043, TDD047 and TDD050, which were drilled 1,400 metres to the north of the Main deposit and south of the Kashegeshe workings. Drill hole spacing was at 40 to 80 metre sections within the Main Twangiza deposit while the drilling to the north was at approximately 300 metre spaced sections.
The mineralized sections of the Main Twangiza deposit are hosted within a series of mineralized feldspar porphyry sills and low grade, pelitic metasediments along a northerly trending anticlinal structure. The gold mineralization is associated with pyrite and arsenopyrite sulphides and silicic, carbonate and potassic alteration.
The new mineralized zone intersected in boreholes TDD047 and TDD050 between Kashegeshe and Lukungurhi comprises a sedimentary package of mudstone, carbonaceous mudstone and siltstone that have been intruded by feldspar porphyry sills. Sulphide mineralization consists of disseminated and massive, pyrite and arsenopyrite. Surface structural mapping indicates a NNW-SSE bedding plane trend which is similar in orientation to the Main Twangiza deposit. Borehole TDD043, 300 metres to the south of TDD050 and 150 metres north of the Lukungurhi workings, is now interpreted as having been drilled into the hanging wall of the mineralised trend. Further drilling will be undertaken next year to determine the resource potential of this new mineralised zone.
A locality plan of the reported drill holes is found accompanying this press release on the Company’s web site at http://www.banro.com/i/pdf/2006-12-14_NRM.pdf.
Results from the core holes are tabulated in the following table:
No Significant Intersection
Holes are uncut.
Commenting on these drilling results at Twangiza, Peter Cowley, President and C.E.O. of the Company, said: “In addition to the ongoing drilling of the Main Twangiza deposit where we continue to intersect excellent widths and grades of gold mineralization, results from boreholes TDD047 and TDD050 drilled 1,400 metres to the north between the Kashegeshe and Lukungurhi workings, indicate good potential for the delineation of additional resources outside the Main Twangiza deposit where Indicated resources of 16.79 million tonnes grading 2.75 g/t Au (equivalent to 1.48 million ounces of gold), Measured resources of 4.8 million tonnes grading 3.50 g/t Au (equivalent to 0.54 million ounces of gold) and Inferred resources of 62.33 million tonnes grading 1.93 g/t Au (equivalent to 3.88 million ounces of gold) have already been delineated. In addition we are still to commence exploration on the nearby, major artisanal sites of Mufwa and Tshondo.”
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 of the sample pulverised down to 90% passing 75 microns. Approximately 150 grams 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 50g charge. As part of the Company’s QA/QC procedures, internationally recognised standards, duplicates and blanks were inserted into the sample batches.
Additional information with respect to the Twangiza property is contained in the following technical reports of Michael B. Skead (who is the Company’s Vice President of Exploration and a “qualified person” as such term is defined in National Instrument 43-101): (a) the report dated November 10, 2006 and entitled “Third NI 43-101 Technical Report, Twangiza Project, South Kivu Province, Democratic Republic of the Congo”; and (b) the report dated March 30, 2006 and entitled “NI 43-101 Technical Report, Twangiza Project, South Kivu Province, Democratic Republic of the Congo”. Copies of these reports can be obtained from SEDAR at 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 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.
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 Daniel Bansah (Aus.I.M.M), the Company’s Mineral Resources Manager and 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 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 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. 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 mineral resources, exploration results, potential mineralization and future plans and objectives of the Company) 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 mineral resource figures referred to in this press release are estimates and no assurance can be given that the indicated levels of gold will be produced), 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. 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.
For further information, please visit our website at 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.