Banro completes initial phase of drilling at Twangiza

Banro Resource (bnrs-c) has completed the first phase of diamond drilling at its Twangiza gold project in the Democratic Republic of Congo’s Kivu province.

This phase consisted of 9,251 metres drilled in 19 holes covering a strike length of about 800 metres.

Highlights from the latest holes include:

* 107.5 metres (from 14 metres) grading 1.19 grams gold per tonne, including 23.2 metres (from 14 metres) of 3.49 grams gold, in hole 7;

* 218.9 metres (from 3 metres) of 1.18 grams gold, including 79 metres (from 26 metres) of 2.16 grams gold, in hole 8;

* 24 metres (from 80 metres) of 1.84 grams gold and 219 metres (from 225 metres) of 1.2 grams gold in hole 9;

* 176.8 metres (from 2.3 metres) of 1.85 grams gold, including 20 metres (from 32 metres) of 7.25 grams gold in hole 10; and

* 271.7 metres (from 132.3 metres) of 1.41 grams in hole 11; and 45.5 metres (from 78.5 metres) of 1.24 grams gold in hole 12.

Holes 8, 9, 11 and 12 were collared to the west of Twangiza’s anticlinal fold axis and were drilled in an easterly direction into the deposit, perpendicular to the traces of holes 7 and 10.

The company reports that initial test work on Twangiza’s oxide mineralization shows that direct cyanidation of unmilled material will enable the recovery of 84% of the gold. In the sulphide mineralization, gold tends to be intergranular with quartz, pyrite and arsenopyrite.

The second phase of drilling at Twangiza will include both infill drilling and the testing of additional areas along strike that were identified by surface mapping during the first work phase.

Banro has estimated that its 1998 exploration program at Twangiza and the Namoya deposit, 180 km to the southwest, will cost $8 million.

On the financial front, Banro has netted $1.54 million from the recent exercise of 220,000 share-purchase warrants dating back to

a private placement completed

on March 27, 1996. The warrants allowed the holder to buy up to 220,000 Banro treasury shares at $7 each for two years.

The company is also negotiating with several investment dealers for additional financing.