Banro Updates Exploration Activities in DRC
February 28th, 2005
Toronto, Canada: Banro Corporation (“Banro” or “The Company”) (TSX Venture Exchange - “BNR”) is pleased to provide the following update on its exploration activities at its wholly-owned projects on the Twangiza-Namoya gold belt in the Democratic Republic of the Congo (the “DRC”).
As previously announced, exploration camps were established on the Namoya and Lugushwa project areas at the end of last year, with exploration activities commencing at Namoya in December 2004 and at Lugushwa in January 2005.
At Namoya, 118 line kilometres of gridding have now been completed on an 80 by 40 metre grid spacing covering the main 2.5-kilometre long Mount Mwendamboko-Kakula-Namoya mineralized trend. The soil sampling program has also been completed with the collection of 2,669 samples. Soil samples are being analyzed at the S.G.S. laboratory in Mwanza, Tanzania.
A comprehensive adit sampling program is now being undertaken at Namoya to re-sample a portion of the 103 adits and crosscuts totaling 8,530 metres which occur along the 2.5-kilometre mineralized trend. The Company believes this sampling program should be sufficient to upgrade the current Inferred Resource into the higher confidence resource categories.
At Lugushwa, the base line has been established and 22 line kilometres of gridding have now been completed on an 80 by 40 metre grid spacing, covering the 3.2-kilometre long Mapale G7-Lugushwa D18/19-G20/21-Simali D8 mineralized trend. This represents approximately 14% of the total line kilometres to be undertaken. In addition, 473 soil samples have been collected to date at Lugushwa.
At Twangiza, establishment of the exploration camp has been temporarily delayed until improved security measures have been implemented in the area. Discussions are underway with security officials and the Company hopes to commence operations during the second quarter at Twangiza.
A contract has been signed to mobilize two core rigs from South Africa, which are expected to arrive during the second quarter.
Banro’s independent geological consultant, Steffen, Robertson and Kirsten (UK) Ltd. (“SRK”), undertook site visits during December 2004 to the Namoya, Lugushwa and Kamituga project areas and has now completed updated Mineral Resource estimates in accordance with National Instrument 43-101 for the Namoya, Lugushwa and Kamituga properties. SRK has outlined the following Mineral Resource estimates, using a 1.0 g/T cut-off grade.
Inferred Mineral Resource: 10,210,000 Tonnes grading 3.6 g/T Au, equivalent to 1,170,000 ounces of contained gold. Mineral resource estimates are based on historical data, principally from 103 adits and crosscuts totaling 8,530 metres and 112 diamond drill holes totaling 9,540 metres. Gold grades were determined using inverse distance weighting of composited grades into a 3-Dimensional cell model, constrained by wireframes.
Inferred Mineral Resource: 37,000,000 Tonnes grading 2.3g/T Au, equivalent to 2,735,000 ounces of gold. Mineral resource estimates are based on polygonal methods using historical assay results from underground adit and surface trench sampling.
Inferred Mineral Resource: 7,260,000 Tonnes grading 3.9g/T Au, equivalent to 915,000 ounces of gold. Mineral resource estimates are based on polygonal methods using historical assay results from underground and surface channel sampling.
A copy of SRK’s report on Namoya, Lugushwa and Kamituga can be found on our website at www.banro.com or on SEDAR at www.sedar.com.
Banro’s fourth project area, Twangiza, was the subject of a National Instrument 43-101 report by CME Consulting Ltd. dated April 30, 2003, which outlined the following Mineral Resource estimates for Twangiza, using a 1.0g/T cut-off grade.
|Measured Resource:||2,601,000 Tonnes grading 3.20g/T Au, equivalent to 268,000 ounces of contained gold|
|Indicated Resource:||27,785,000 Tonnes grading 1.95g/T Au, equivalent to 1,742,000 ounces of contained gold|
|Inferred Resource:||19,241,000 Tonnes grading 1.90g/T Au, equivalent to 1,175,400 ounces of contained gold|
A copy of this report on Twangiza can also be obtained from SEDAR at www.sedar.com.
Peter Cowley, F.I.M.M., Banro’s President and CEO, and a “qualified person” as defined by National Instrument 43-101, reviewed the technical information in this release.
Banro also announces that it has granted to directors and an officer of Banro, pursuant to the terms of Banro’s stock option plan, an aggregate of 90,000 stock options, each such stock option entitling the holder to purchase one common share of Banro at a price of Cdn$4.70 for a period of five years.
With respect to the political situation in the DRC, the country’s first democratic elections since independence are scheduled to be held on June 30, 2005. Discussions are currently underway between the Transitional Government of the DRC and the United Nations, European Community, African Union and others in the Internationally community towards meeting this date. However, there are provisions to enable the Transitional Government to delay elections in the event of logistical issues.
Banro is a Canadian-based gold exploration company focused on the development of its four wholly-owned properties in the South Kivu and Maniema provinces of the DRC. To date, Banro has identified a total of 2.01 million ounces of Measured and Indicated Mineral Resources and Inferred Mineral Resources of 6.0 million ounces.
For further information:
Peter Cowley, President, CEO
United Kingdom, Tel: +44 (790) 454-0856
Arnold T. Kondrat, Executive Vice-President,
Martin Jones, Vice-President, Corporate Development
Toronto, Ontario, Tel: (416) 366-2221
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