Banro Corporation is pleased to announce
that it has entered into an agreement
to purchase a refurbished gold processing
plant (the "plant") capable of achieving
a throughput capacity of
1.3 million tonnes per annum.
The closing of the purchase of
the plant is expected to occur
on or about September 21, 2009.
This acquisition supports the Company's strategy
of advancing production through a staged approach
which will focus initially on the processing of
oxide material at the Company's wholly-owned
Twangiza gold project in the Democratic Republic
of the Congo (the "DRC").
It is planned that the plant will be transported
by sea from Australia, via the Mombasa port in Kenya,
and then by road to the Twangiza project site
in the DRC, where it will be erected and
commissioned over the next 24 months.
The Company intends to further optimize
this timeline as the project moves forward.
The refurbished plant comprises a crushing plant,
two ball mills, carbon-in-pulp (CIP) section,
gold room and a laboratory.
The Company's consultants, SENET Engineering,
estimate the total cost of purchasing and
delivering the plant to Twangiza to be less
than US$15 million, which represents
significant savings in time and cost to Banro.
SENET Engineering has been selected as
the overall project manager and will also
manage the erection and commissioning of the plant.
The Company intends to operate the plant as
part of a low-cost "phase one" oxide
mining operation, to be expanded in
It is estimated that annual production from
this first phase plant will be between 80,000
and 110,000 ounces of gold per annum at
a total operating cash cost of less than
US$400 per ounce.
The Company estimates the capital cost for
phase one of the project (which phase
is planned to use diesel power rather
than hydroelectric power) to be approximately
US$145 million, including contingencies.
The Company has initiated discussions with
a number of parties to arrange debt financing
to supplement the equity financing
which closed on June 25, 2009.
The Company believes that this decision
will enable the Company to fast track
the Twangiza project and commence
gold production earlier along
the extensive Twangiza - Namoya gold
belt in the DRC where significant potential
exists for expanding the Company's gold
resources at its four wholly-owned gold projects.
The updated feasibility study of the
Twangiza project, announced on June 8, 2009,
indicated full production at the Twangiza project
to be in excess of 300,000 ounces of gold
per annum based on current resources.
Full details of the updated feasibility study
of Twangiza, including the factors and assumptions
used to develop the study's conclusions,
are 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."
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Kigali - RWANDA
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