Banro Reports Highly Promising Results From Initial Exploration Of The Kaziba Discovery At Its Wholly-Owned Twangiza Gold Project
Wednesday, May 6th, 2009
Banro Corporation is pleased to announce results of the first phase of exploration at the newly-discovered Kaziba Prospect, located on Banro’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 sampling, and rock chip sampling of artisanal workings and outcrops.
The Kaziba Prospect which has a current strike length of 1,500 metres, is located 11 km east of the Twangiza Main and Twangiza North deposits, where Banro has defined a Measured Mineral Resource of 1,320,000 ounces of gold (17,200,000 tonnes grading 2.4 g/t Au.), an Indicated Mineral Resource of 4,280,000 ounces of gold (90,300,000 tonnes grading 1.5 g/t Au) and an Inferred Mineral Resource of 400,000 ounces of gold (8,200,000 tonnes grading 1.7 g/t Au). The Company published the results of its Twangiza Feasibility Study in a press release dated January 26, 2009.
Gold mineralization at Kaziba is hosted by weakly metamorphosed pelitic sediments, which have been folded into a series of north-south trending anticlines and synclines, with moderately dipping limbs and a northerly plunge of about 26°. Gold mineralization in the vicinity of the artisanal workings is associated with oxidized disseminated sulphides and oxidixed sulphidic veins (i.e. similar in style to the Twangiza Main deposit) over a strike distance of about 250 metres. Elsewhere in the prospect area, gold mineralization is associated with massive quartz veins several metres across and with narrower sheeted vein sets parallel to bedding.
A soil sampling grid was established over an area of 900 metres by 2,000 metres, centred on the mineralization exposed by artisanal miners. A total of 573 samples were taken at intervals of 40 metres on 80 metre-spaced lines, at a depth of 60 cm. Using a threshold of 60 ppb Au, several anomalies are defined, with gold values up to 1,000 ppb.
62 rock chip samples were collected from the workings with 39% of these returning values of between 0.5 g/t Au and 30.7 g/t Au. Elsewhere in the gridded area, rock chip samples from outcrop graded up to 14.6 g/t Au, while values of up to 69.3 g/t Au were returned from a quartz vein to the west of the current grid.
Exploration on the Kaziba Prospect is continuing by means of western and northern extensions of the geochemical grid, systematic channel sampling of workings and auger drilling of soil anomalies with the objective of sampling the weathered bedrock. The Company plans a diamond drilling program at the Kaziba Prospect following completion of this initial exploration work.
The Twangiza project is located 45 kilometres south-southwest of the major city of Bukavu in South Kivu Province, DRC, and consists of six mining permits covering 1,164 square kilometres. Having completed a Feasibility Study at Twangiza, the Company’s current focus at the project is on proving up additional ounces in the oxide and transitional categories on the three neighbouring targets of Kaziba, Mufwa and Tshondo, which are all within trucking distance of the proposed Twangiza plant site. The Company plans to further enhance the project economics as reported in the Feasibility Study by completing additional metallurgical test work and reassessing input costs in light of lower global building and energy costs.
Commenting on the results from the Kaziba Prospect, Mike Prinsloo, President and C.E.O. of the Company, said: “The early-stage results at Kaziba are very encouraging and provide further evidence of the considerable prospectivity within the Twangiza property. Each of the three new prospects at Twangiza – Kaziba, Mufwa and Tshondo – has excellent potential to add significant upside to the current Twangiza resource. Exploration is also continuing on the immediate west limb of the Twangiza Main deposit following encouraging results from rock-chip and channel sampling.”
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