Banro's Phase 1 Mining Of The Oxide Cap At Twangiza Indicates Annual Gold Production Of 119,303
Ounces At Total Cash Costs Of US$356 Per Ounce For First 5 Years Of
Production
Commercial
Production on Track for Q4 2011
TORONTO, March 4, 2011 - Banro
Corporation ("Banro" or the
"Company") (TSX - "BAA"; NYSE AMEX- "BAA")
is pleased to announce the results of an economic assessment of the
mining of the oxide cap of the Twangiza Gold
Mine, located on the Twangiza-Namoya gold belt
in the Democratic Republic of the Congo (the "DRC").
Banro is fast tracking production at Twangiza by initially exploiting the oxide cap ahead
of building the full scale facilities outlined in the July 17, 2009 Twangiza feasibility study report (which reported the
Twangiza proven plus probable mineral reserves
as 4.54 million ounces of gold). This first phase of development
(referred to as Twangiza "Phase 1")
is on track to deliver commercial production during the fourth quarter of
2011. Banro intends to use the Phase 1 cash
flow to build the Company's Namoya heap leach
gold project (reference is made to Banro's
press release dated January 24, 2011 which outlined production for the Namoya heap leach project of 124,000 ounces per annum
at an average total cash cost of US$359 per ounce over a 7 year mine
life), thereby achieving in excess of 240,000 ounces per annum for the
Company and enabling Twangiza to then be
further expanded to its full production capacity. This staged development
and internal financing plan will allow Banro
management to continue to build on its positive experience at Twangiza in sourcing and installing plant and mining
equipment in the eastern DRC in order to grow Banro's
production profile along the Twangiza-Namoya
gold belt.
Highlights for the Twangiza Phase 1 oxide project (1.7Mtpa) include:
- Project
post tax net present value ("NPV") of US$581 million and
US$743 million based on gold prices of US$1,200 and US$1,400, respectively,
using a 5% discount rate. The NPV using a 0% discount rate is US$692
million and US$883 million based on gold prices of US$1,200 and
US$1,400, respectively.
- Total
gold production of 1,004,796 ounces for the first phase oxide life
of mine with an average annual production of 119,303 ounces for the
first 5 years.
- Total
cash costs of US$356 per ounce of gold for the first 5 years and
total operating costs of US$378 per ounce for the life of the mine.
- Total
project capital expenditure of US$220 million (excluding ongoing
capital);
- Phase
1 expansion to 1.7Mtpa = US$220 million (made up as US$209 million
for 1.3Mtpa plus infrastructure to support expansion, and US$11
million associated with the process plant upgrade to deliver the
1.7Mtpa upgrade). Banro has already
completed more than 50% of these capital expenditures.
- Sustaining
(Life of Mine Working Capital) - US$83 million (which includes
capital of US$10M for additional mining fleet, which is spread over
the life of the mine).
This economic assessment has been prepared with
input from a number of independent consultants including the following:
- SRK Consulting (UK) - Mineral Resources
- SRK
Consulting (SA) - Mining and Mineral Reserves
- Metago
Environmental Engineers (Pty) Ltd - Tailings Management Facility
- SENET
(Pty) Ltd. - Processing and Infrastructure.
SENET also undertook the
economic valuation and report compilation for this economic assessment.
Full details of this economic assessment in the form of a National
Instrument 43-101 technical report will be filed on SEDAR within the next
45 days.
Additional information with respect to the Twangiza
project is contained in the technical report of SENET dated July 17, 2009
and entitled "Updated Feasibility Study NI 43-101 Technical Report, Twangiza Gold Project, South Kivu Province,
Democratic Republic of Congo", which reported the Twangiza Mineral Reserves (Proven plus Probable) as
4.54 million ounces of gold, as set out in the following table.
TWANGIZA OXIDE AND SULPHIDE MINERAL RESERVE ESTIMATES
RESERVE CATEGORY
|
DEPOSIT
|
TONS (Mt)
|
GRADE (g/t Au)
|
OUNCES (Moz)
|
PROVEN
|
MAIN + NORTH
|
15.98
|
2.35
|
1.21
|
PROBABLE
|
MAIN + NORTH
|
66.48
|
1.56
|
3.33
|
PROVEN + PROBABLE
|
MAIN + NORTH
|
82.46
|
1.71
|
4.54
|
In August 2009, Banro announced its intention
to begin construction of "Phase 1" of its Twangiza
project by initially exploiting the oxide cap ahead of building the full
scale facilities outlined in the July 2009 feasibility study report, and
to that end acquired a gold plant capable of processing 1.3Mtpa of ore.
Reconstruction of roads and bridges and infrastructure development near
the mine site was completed in the first half of 2010 (much of which will
also service the larger Phase 2 expansion) and by December 2010,
mechanical construction of the gold plant was 50% complete. It is
expected that the Twangiza mine will enter
production in the fourth quarter of 2011. The plant and infrastructure
design for the oxide processing plant has recently been made to
accommodate a step wise increase in oxide processing from the initial
design (1.3Mtpa) to 1.7Mtpa. The focus of this economic assessment has
primarily been to identify the changes and modifications required to
increase the annual throughput of the process plant to 1.7Mtpa from its
current design capacity of 1.3Mtpa to mine and process the oxide
component of the Twangiza Mineral Resource.
TWANGIZA PROJECT OVERVIEW
The Twangiza project is located in the South
Kivu Province of the DRC, 45 kilometres to the
south-southwest of Bukavu, the provincial
capital. The Twangiza property consists of six
exploitation permits totaling 1,156 square kilometers which are
wholly-owned by Banro through a DRC subsidiary,
Twangiza Mining SARL. The current exploration
commenced in October 2005 and up to November 2008, more than 330 diamond
drill holes have been completed. There has also been extensive
re-sampling of old mine adits, which exist
along the 3.5 kilometer long, north trending mining target, which hosts
the two principal deposits of Twangiza Main and
Twangiza North. Gold mineralization is hosted
in sediments (mudstones and siltstones) and in porphyry sills, confined
by a doubly plunging anticlinal structure. The
ore body is such that the oxides are contained in the near surface with a
depth down to about 80m. As such limited, if any, pre-stripping is
required and given the significant width of the ore body (210m) the
stripping ratio is low, at around 1.52:1. In addition, the mining lends
itself to free dig for the initial years of the project and given the
unconsolidated and friable nature of the oxide ores to this level the
plant throughput may exceed its stated capacity of 1.7Mtpa if the ore
properties prove to be less competent in reality compared to the results
of the metallurgical tests. These efficiencies have not been factored
into the projected production profile or economic assessment.
TWANGIZA MINERAL RESOURCE ESTIMATES
SRK Consulting (UK) Ltd. ("SRK (UK)") prepared an independent
estimate of the Mineral Resources at Twangiza,
which was reported in Banro's press release
dated January 14, 2009 and has now been separated into "Oxide"
and "Non-Oxide" components as set out in the table below.
Martin Pittuck, an employee of SRK (UK), was
the "qualified person" (as such term is defined in National
Instrument 43-101) responsible for this estimate.
The Mineral Resource estimate was reported according to the definitions
and guidelines given in the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Standards on Mineral Resources and Reserves. The Mineral
Resource Statement uses a cut off grade of 0.5 g/t gold; it has been
restricted to an optimum pit shell which uses a US$1,000/oz gold price
assumption is considered therefore to have reasonable prospects for
economic extraction by open pit mining. SRK has not re-reported the
Mineral Resource inside the US$1,200 pit shell used for reporting Mineral
Reserves because the pit shells are already limited by the base of the
oxide, and subsequently only a very slight increase in Mineral Resource
would be expected in lateral extensions.
The table below details the "Oxide" and "Non-Oxide"
components of the Twangiza Mineral Resource
estimate split by confidence category, at a cut off grade of 0.5 g/t
gold.
OXIDE MINERAL RESOURCE CATEGORY
|
TONS (Mt)
|
GRADE (g/t Au)
|
OUNCES (Moz)
|
MEASURED
|
11.1
|
2.49
|
0.89
|
INDICATED
|
6.8
|
1.9
|
0.4
|
MEASURED & INDICATED
|
17.9
|
2.3
|
1.3
|
INFERRED (EXCLUDING VALLEY FILL)
|
0.7
|
1.7
|
0.04
|
INFERRED (VALLEY FILL)
|
1.0
|
4.2
|
0.1
|
NON-OXIDE MINERAL RESOURCE CATEGORY
|
TONS (Mt)
|
GRADE (g/t Au)
|
OUNCES (Moz)
|
MEASURED
|
6.1
|
2.22
|
0.43
|
INDICATED
|
83.5
|
1.4
|
3.9
|
MEASURED & INDICATED
|
89.6
|
1.5
|
4.3
|
INFERRED
|
6.4
|
1.3
|
0.3
|
NB:
Any apparent errors are due to rounding and are therefore not considered
material to the estimate
MINE PLANNING
SRK Consulting (SA) (Pty) Ltd. ("SRK (SA)") undertook the mine
planning process for the Phase 1 Twangiza oxide
open pit for this oxide economic assessment, based on Banro's
Measured and Indicated Mineral Resources delineated to date. Pit
optimizations were undertaken on the oxide components of the two
principal deposits at Twangiza: namely Twangiza Main and Twangiza
North, using the following estimates and factors:
PARAMETER
|
VALUE
|
GOLD PRICE (LOWER LIMIT)
|
US$1,000/oz
|
GOLD PRICE (BASE CASE)
|
US$1,200/oz
|
GOLD PRICE (UPPER LIMIT)
|
US$1,400/oz
|
DIESEL FUEL PRICE
|
US$1.00/litre
|
MINING DILUTION
|
5% at zero grade
|
MINING RECOVERY
|
95%
|
PIT SLOPES
|
Minus 28 to 30 degrees
|
METALLURGICAL RECOVERY
|
OXIDE ORE : MAIN
|
90.1%
|
|
OXIDE ORE : NORTH
|
91.2%
|
The following mineral reserves were estimated by SRK (SA) to be contained
in a practical oxide pit design:
RESERVE CATEGORY
|
DEPOSIT
|
TONS (Mt)
|
GRADE (g/t Au)
|
OUNCES (Moz)
|
PROVEN
|
OXIDE MAIN + NORTH
|
10.25
|
2.42
|
0.797
|
PROBABLE
|
OXIDE MAIN + NORTH
|
5.28
|
1.96
|
0.333
|
PROVEN + PROBABLE
|
OXIDE MAIN + NORTH
|
15.53
|
2.26
|
1.130
|
SRK (SA)'s above independent estimate of the Twangiza
Oxide Mineral Reserves is based on the above Mineral Resource estimate.
The Mineral Resources are inclusive of the Mineral Reserves. The Mineral
Reserves were estimated by Mark Sturgeon, who is a "qualified
person" as such term is defined in National Instrument 43-101 and an
employee of SRK (SA). The Mineral Reserve Statement is reported in
accordance with National Instrument 43-101 requirements.
The two deposits at Twangiza are to be mined
simultaneously to provide a throughput of 1.7 million tons of oxide ore
per annum to the processing plant. An additional 1.3 million tons of
material originating from a valley fill source, at an estimated grade of
approximately 3 g/t could be processed, in addition to the proven and
probable north and main pit oxide reserves. More work is required to
increase the confidence in this valley fill resource and to demonstrate
the feasibility of mining and processing before the valley fill can be
converted and added to the Mineral Reserve. If treated, this material
would effectively displace the lowest grade faction of the open pit ore
in the mill feed, which would then be stockpiled to the end of life of
the open pit.
The Twangiza project has a favorable stripping
ratio of 1.52, which is an important contributing factor to the mine's
low operating costs. The estimated total open pit mine operating cost of
US$5.46 per ton of ore is equivalent to US$1.78 per ton of rock mined,
based on an owner operated mining option.
PROCESSING PLANT
During the initial evaluation of the processing capacity of the existing
plant, it had been identified as being able to process an annual tonnage
of 1.3Mtpa. With subsequent in-depth investigations to identify the
optimal comminution circuit operating
parameters by a specialist firm, it was established that the processing
plant could be modified to increase the annual throughput to a maximum of
1.7Mtpa.
With this in mind, large capital items that cannot be modified later were
already specified for the increased duty, with the balance of the smaller
modifications targeted for upgrading once debottlenecking of the process
plant operation at 1.3Mtpa has been completed.
The aim of the process design component of this economic assessment was
to complete a detailed investigation into the balance of the smaller
modifications targeted for upgrading the plant to 1.7Mtpa, and to
establish a capital cost and mining program associated with these
modifications.
Priority has been given to the minimizing of production downtime during
equipment selection and construction philosophy.
The detailed engineering design and procurement of plant equipment would
be executed concurrently with the final stages of construction and
commissioning of the processing plant in its current configuration. The
installation of new plant equipment would be planned with the majority of
the installation work taking place during the ramp-up phase of the
processing plant towards achieving nameplate capacity at 1.3Mtpa, with
smaller tie-ins taking place during planned maintenance shutdowns. The
steel structures and pipe work in the areas requiring more extensive
modifications would be pre-erected where practical and installed during
shutdowns specifically planned for these events.
DEVELOPMENT TIMETABLE
Implementation of the modifications to the processing plant and
infrastructure is expected to take a minimum period of 12 months, which
is the reason for undertaking this economic assessment and plan for these
modifications in parallel with the commissioning of the existing
processing plant. This approach would allow for a period of
debottlenecking prior to implementation of the modifications to the
plant.
TAILINGS MANAGEMENT FACILITY
As part of this economic assessment, Metago
Environmental Engineers (the designers of the Twangiza
tailings management facility) were tasked with
evaluating the facility's ability to accommodate the increased throughput
rate. The TMF wall does not change in size or layout as the TMF basin
will hold the same final tonnes (and hence
volume) of tailings irrespective of the plant throughput rate. However
the increase in production rate from 1.3Mtpa to 1.7Mtpa means that wall
raising will be brought forward, as will the costs thereof.
CAPITAL COST SUMMARY
The table below summarizes the estimated capital costs associated with
increasing the annual throughput of the mine from 1.3Mtpa to 1.7Mtpa.
The current mining philosophy of an owner's mining fleet operated by a
contractor has been retained, and additional cost provisions have been
made to allow for the purchasing of additional mining fleet equipment to
accommodate the increased throughput.
ITEM
|
VALUE (US$'000)
|
CAPITAL EXPENDITURE
|
|
MINING - SUSTAINING CAPITAL
(ADDITIONAL FLEET TO MINE 1.7MTPA)
|
12,358
|
TAILINGS - SUSTAINING CAPITAL
|
71,420
|
POWER PLANT DEMOBILIZATION
|
113
|
MINE REHABILITATION AND CLOSURE
|
3,385
|
TOTAL - CAPITALISED EXPENDITURE
|
87,275
|
OPERATING COST SUMMARY
The following operating costs were estimated and incorporated into the
financial analysis:
ITEM
|
UNIT
|
VALUE
|
MINING OPERATING COSTS
|
|
|
ANNUAL UNIT MINING OPERATING COST
|
US$/t processed
|
4.93
|
ANNUAL UNIT MINING OPERATING COST
|
US$/oz
|
73.11
|
PROCESSING PLANT OPERATING
COSTS
|
|
|
ANNUAL UNIT PROCESSING PLANT OPERATING COST
|
US$/t processed
|
17.77
|
ANNUAL UNIT PROCESSING PLANT OPERATING COST
|
US$/oz
|
263.22
|
GENERAL & ADMINISTRATION COSTS
(INCL. ASSAY COSTS)
|
|
|
ANNUAL UNIT G&A + ASSAYING
OPERATING COST
|
US$/t processed
|
2.81
|
ANNUAL UNIT G&A + ASSAYING
OPERATING COST
|
US$/oz
|
41.62
|
NSR ROYALTY & REFINING
CHARGES
|
|
|
ANNUAL UNIT ROYALTY &
REFINING OPERATING COST
|
US$/t processed
|
1.08
|
ANNUAL UNIT ROYALTY &
REFINING OPERATING COST
|
US$/oz
|
16.00
|
|
|
|
TOTAL OPERATING COSTS
|
|
|
ANNUAL CASH OPERATING COST
|
US$/t processed
|
26.59
|
ANNUAL CASH OPERATING COST
|
US$/oz
|
395
|
FINANCIAL ANALYSIS - ASSUMPTIONS
In preparing this economic assessment there have been a number of
assumptions and material factors that have been employed. Some of these are shown in the table below.
ITEM
|
UNIT
|
VALUE
|
REVENUE
|
|
|
PLANT
THROUGHPUT
|
TONS/annum
|
1,700,000
|
GOLD
PRICE (LOWER LIMIT)
|
US$/oz
|
1,000
|
GOLD
PRICE (BASE CASE)
|
US$/oz
|
1,200
|
GOLD
PRICE (UPPER LIMIT)
|
US$/oz
|
1,400
|
DISCOUNT
RATE
|
%
|
5%
|
|
|
|
FUEL PRICE
|
|
|
DIESEL
|
US$/litre
|
1.09
|
|
|
|
FISCAL
|
|
|
TAX
FREE HOLIDAY
|
years
|
10
|
TAX
RATE (YEAR 1 -- 10)
|
%
|
0
|
TAX
YEAR (BEYOND YEAR 10)
|
%
|
30
|
NSR
ROYALTY
|
%
|
1.0
|
NET
PROFIT ROYALTY
|
%
|
4.0
|
DEPRECIATION
|
%
|
0
|
|
|
|
CONVERSION FACTORS
|
|
|
KILOGRAMS
TO OUNCES
|
kg/ troy ounce
|
32.1505
|
DIESEL
FUEL DENSITY
|
t/m3
|
0.85
|
EXCHANGE
RATE
|
ZAR : US$
|
7.496
|
|
|
|
OTHER
|
|
|
REFINING
CHARGES, DORE TRANSPORT
& INSURANCE
|
US$/oz
|
5.00
|
PERCENT OF CAPITAL EXPENDITURE
(YEAR 2011)
|
%
|
60
|
|
|
|
FINANCIAL ANALYSIS - RESULTS SUMMARY
This economic assessment has produced a cash flow valuation model for the
Twangiza Phase 1 project based on the
geological and engineering work completed to date. The financial analysis
does not include the high grade valley fill material for which the
optimal mining and processing methodology is being determined.
The base case was developed using a long-term gold price of US$1,200 per
ounce and 5% discount rate. The financial model also reflects the
favorable fiscal aspects of the mining convention governing the Twangiza project, which include 100% equity interest
and a 10 year tax holiday from the start of production. An administrative
tax of 5% for the importation of plant, machinery and consumables has
been included in the projected capital and operating costs.
Calculated sensitivities show the significant upside leverage to gold
prices and the robust nature of the projected economics to operating
assumptions.
ITEM
|
UNIT
|
GOLD PRICE OF
US$1,200/oz @ 5% discount
|
GOLD PRICE OF
US$1,400/oz @ 5% discount
|
LIFE OF MINE GOLD PRODUCTION
|
oz
|
1,004,796
|
1,004,796
|
PRODUCTION
PERIOD
|
years
|
8.76
|
8.76
|
ANNUAL
GOLD PRODUCTION
|
oz
|
114,744
|
114,744
|
LIFE OF MINE DIRECT OPERATING
COSTS
|
US$/oz
|
378
|
378
|
TOTAL CASH OPERATING COSTS
FOR FIRST 5 YEARS
|
US$/oz
|
356
|
356
|
LIFE OF MINE TOTAL CASH OPERATING
COSTS
|
US$/oz
|
395
|
397
|
TOTAL
CAPITAL COSTS
|
US$/oz
|
87
|
87
|
TOTAL
PRODUCTION COSTS
|
US$/oz
|
482
|
484
|
POST-TAX NET PRESENT VALUE
|
US$ million
|
581
|
743
|
NET CASH FLOW AFTER TAX & CAPEX
|
US$ million
|
692
|
883
|
SENSITIVITY ANALYSIS
A sensitivity analysis was performed on the after tax profits by varying
the gold price between US$1,000 and US$1,600 per ounce. The results are summarized in the table below.
GOLD PRICE (US$/oz)
|
NET PRESENT VALUE (US$
'000)
|
0% DISCOUNT
|
5% DISCOUNT
|
10% DISCOUNT
|
1,600
|
1 074 285
|
904 218
|
776 882
|
1,500
|
978 789
|
823 433
|
707 089
|
1,400
|
883 293
|
742 649
|
637 296
|
1,300
|
787 797
|
661 864
|
567 503
|
1,200
|
692 301
|
581 079
|
497 711
|
1,100
|
596 805
|
500 294
|
427 918
|
1,000
|
501 280
|
419 490
|
358 112
|
QUALIFIED PERSONS
This economic assessment of Twangiza Phase 1
was prepared under the supervision of Mr. Rudi Rautenbach,
Studies Manager with SENET and a "qualified person" as such
term is defined in National Instrument 43-101. Mr. Rautenbach
has reviewed and approved the contents of this press release. A copy of
the Twangiza Phase 1 economic assessment
technical report compiled by SENET will be available on SEDAR at www.sedar.com once
filed.
A list of all "qualified persons" that contributed to this
economic assessment includes:
- Mr.
Rudi Rautenbach of SENET (Processing &
Infrastructure)
- Mr.
Martin Pittuck of SRK (UK) (Mineral
Resources)
- Mr.
M. Wertz of SRK (SA) (Mining and Mineral Reserves)
- Mr.
Mark Sturgeon of SRK (SA) (Mining and Mineral Reserves)
- Mr.
Steven Dorman of Metago Environmental
Engineers (Tailings Management Facility)
Banro is a Canadian-based gold
exploration and development 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, the Company is constructing "Phase 1"
of its flagship Twangiza project. Banro's strategy is to unlock shareholder value by
increasing and developing its significant gold assets in a socially and
environmentally responsible manner.
Cautionary
Statement
This economic
assessment of Twangiza Phase 1 does not include
Inferred Mineral Resources in the open pit outlines. There is no
certainty that all the conclusions reached in this study will be
realized.
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.
Cautionary Note
Concerning 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 estimates and/or assumptions in respect of production, revenue,
cash flow and costs, estimated project economics, Mineral Resource and
Mineral Reserve estimates, potential mineralization, potential Mineral
Resources and Mineral Reserves, projected timing of production and the
Company's exploration and development plans and objectives with respect
to its projects) 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:
uncertainty of estimates of capital and operating costs, production
estimates and estimated economic return; the possibility that actual
circumstances will differ from the estimates and assumptions used in the Twangiza study and mine plan; failure to establish
estimated Mineral Resources or Mineral Reserves; fluctuations in gold
prices and currency exchange rates; inflation; gold recoveries for Twangiza being less than those indicated by the
metallurgical test work 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
equity markets; political developments in the DRC; lack of
infrastructure; failure to procure or maintain, or delays in procuring or
maintaining, permits and approvals; lack of availability at a reasonable
cost or at all, of plants, equipment or labour;
inability to attract and retain key management and personnel; 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 29, 2010 filed on SEDAR at www.sedar.com and
EDGAR at www.sec.gov. 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.
Cautionary Note
Concerning Resource and Reserve Estimates
The Mineral Resource
and Mineral Reserve figures referred to 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 and Reserve estimates included in this
press release are well established, by their nature resource and reserve
estimates are imprecise and depend, to a certain extent, upon statistical
inferences which may ultimately prove unreliable. If such estimates are
inaccurate or are reduced in the future, this could have a material
adverse impact on the Company.
Due to the
uncertainty that may be attached to Inferred Mineral Resources, it cannot
be assumed that all or any part of an Inferred Mineral Resource will be
upgraded to an Indicated or Measured Mineral Resource as a result of
continued exploration. Confidence in the estimate is insufficient to
allow meaningful application of the technical and economic parameters to
enable an evaluation of economic viability worthy of public disclosure
(except in certain limited circumstances). Inferred Mineral Resources are
excluded from estimates forming the basis of a feasibility study.
The Mineral Resource
and Reserve Estimates are reported according to the definitions and
guidelines given in the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves. The
Mineral Resource estimates are considered to have reasonable prospects
for economic extraction by open pit mining and have been restricted to an
optimum pit shell which uses a US$1,000/oz gold price assumption.
For further information, please visit our website at www.banro.com, or
contact: Simon Village, Chairman, United Kingdom, Tel: +44 1959 569 237,
Arnold T. Kondrat, Executive Vice-President,
Toronto, Ontario, or Tomas Sipos,
Vice-President, Corporate Development, Toronto, Ontario, Tel: (416)
366-2221 or 1-800-714-7938.
|