Banro outlines major new mineralized gold structure at Mufwa within its Twangiza property
06 June 2008 - 10:00PM
PR Newswire (US)
Results include soil values up to 1,880 ppb Au; rock chip samples
grading up to 64.00 g/t Au; and channel samples in artisanal adits
with intersections of 13.75 metres @ 8.75 g/t Au, 4.00 metres @
24.15 g/t Au and 8.00m @ 7.87 g/t Au. TORONTO, June 6
/PRNewswire-FirstCall/ -- Banro Corporation ("Banro" or the
"Company") (AMEX - "BAA"; TSX - "BAA") is pleased to announce the
results of the first phase of exploration on the Mufwa Prospect,
located in the Company's wholly-owned Twangiza Project on the
Twangiza-Namoya gold belt in the Democratic Republic of the Congo
(the "DRC"). This work has included geological mapping, soil and
rock chip sampling and channel sampling in adits developed by
artisanal miners. Preparations are in progress for a preliminary
core drilling program. Three maps (Figures 1 to 3) highlighting the
location and soil anomalies on the Mufwa Prospect are found
accompanying this press release on the Company's website at
http://www.banro.com/i/pdf/2008-06-06_NRM.pdf. The Mufwa Prospect
(Figure 1) is located 11.5 kilometres northwest of the Twangiza
Main and Twangiza North deposits where Banro has defined an
estimated Measured Mineral Resource of 1,315,000 ounces of gold
(14,510,000 tonnes grading 2.82 g/t Au), Indicated Mineral Resource
of 2,558,000 ounces of gold (39,119,000 tonnes grading 2.03 g/t Au)
and Inferred Mineral Resource of 2,705,000 ounces of gold
(46,188,000 tonnes grading 1.82 g/t Au). Reference is made to
Banro's press release dated January 15, 2008 (a copy of which can
be obtained from SEDAR at http://www.sedar.com/). The Company is
currently in the process of completing a pre-feasibility study of
the Twangiza Project. Gold mineralization at Mufwa is hosted in
weakly metamorphosed pelitic sediments which have been folded into
a north-south trending anticline, with moderately dipping limbs and
a northerly plunge of about 40 degrees. The prospect is therefore
similar to the Twangiza deposits in terms of structural setting.
Gold mineralization is associated with several zones of quartz
veining which are sub-parallel to bedding, and up to at least 14
metres in width. Within these zones, individual veins form
irregular stockworks, sheeted vein systems and discontinuous
lenses. Pyrite and arsenopyrite occur in the quartz veins in
variable amounts, and may also occur disseminated in the host rock
between the veins. A soil sampling grid was established over an
area measuring 4 kilometres by 2 kilometres, centred on the
mineralization exposed by artisanal miners. Samples were taken at
intervals of 40 metres on 80 metre-spaced lines, at a depth of 60
centimetres. A total of 2,500 soil samples were collected and
analysed for gold. Using a threshold of 60 ppb Au, several
anomalies are defined within an area measuring approximately 1,700
metres east-west and 700 metres north-south, indicating that
mineralization extends outside the area of artisanal mining
activity (Figure 2). Gold values of up to 1,880 ppb were returned
for the soil samples. Rock chip samples from outcrop confirm the
presence of in situ gold mineralization in the vicinity of the soil
anomaly, returning values of up to 64.00 g/t Au (Figure 2). (A
total of 199 rock samples were collected and analyzed for gold).
Twenty-five adits (Figure 3) were mapped and channel sampled at
approximately 1 metre intervals by hammer and chisel. (A total of
940 adit samples were collected and analyzed for gold). The most
significant intersections were 13.75 metres grading 8.75 g/t Au,
4.00 metres @ 24.15 g/t Au, 8.00 metres @ 7.87 g/t Au, 5.00 metres
@ 9.34 g/t Au, 9.90 metres @ 4.32 g/t Au and 11.00 metres @ 3.87
g/t Au. Preparations are well advanced for an initial 10-hole,
2,000 metre core drilling program to further investigate the
frequency, width, tenor and continuity of the mineralized zones at
Mufwa. Commenting on these results, Mike Prinsloo, President and
C.E.O. of the Company, said: "These initial exploration results
from our new Mufwa Prospect are very encouraging with the extent
and structural setting similar to the Twangiza Main and Twangiza
North deposits where we are finalizing the pre-feasibility study.
We expect to commence initial drilling on this prospect towards the
end of this month." All soil and rock samples were placed in sealed
bags and sent to the Company's sample preparation facility in
Bukavu, DRC. The rock samples were then crushed down to minus 2 mm,
and split with half of the sample pulverized down to 90% passing 75
microns. The soil samples were sieved to minus 2 mm, and the
undersized fraction pulverized down to 90% passing 75 microns.
Approximately 150 grams of the pulverized sample was then shipped
to the SGS Laboratory (which is independent of the Company) in
Mwanza, Tanzania where the samples were analyzed for gold by fire
assay using a 50g charge. As part of the Company's QA/QC
procedures, which conform to internationally recognised standards,
duplicates and blanks were inserted into the sample batches.
Additional information with respect to the Twangiza Project is
contained in the technical report dated September 13, 2007 and
entitled "Preliminary Assessment NI 43-101 Technical Report,
Twangiza Gold Project, South Kivu Province, Democratic Republic of
Congo". A copy of this report can be obtained from SEDAR at
http://www.sedar.com/. Banro is a Canadian-based gold exploration
company focused on the development of four major, wholly-owned gold
projects, each with mining licenses, 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. Qualified Person
---------------- 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 K.
Bansah who is a Member of The Australasian Institute of Mining and
Metallurgy (Aus.I.M.M), the Company's Vice President, Exploration
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 # 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, exploration results, potential mineralization, potential
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 (the
mineral resource figures referred to in this press release are
estimates and no assurances can be given that the indicated levels
of gold will be produced), the possibility that future exploration
results will not be consistent with the Company's expectations,
gold recoveries for Twangiza 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, fluctuations in currency
exchange rates, inflation, 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 disclosed under the heading "Risk Factors" and
elsewhere in the Company's annual information form dated March 28,
2008 filed on SEDAR at http://www.sedar.com/. 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. DATASOURCE: Banro Corporation CONTACT: please
visit our website at http://www.banro.com/, or contact: Mike
Prinsloo, President and C.E.O., South Africa, Tel: + 27 (0) 11
958-2885; 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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