Name and Location
Twangiza gold project, South Kivu province, Democratic Republic of Congo.

Project Description
The Twangiza project has total proven and probable reserves of 4,54-million ounces of gold and consists of six exploitation permits totalling 1 156 m².

The updated feasibility study for the project envisages a conventional openpit shovel-and-truck operation to mine sufficient ore to supply five-million tons a year of oxide ore throughput, and subsequently 3,75-million tons a year for transitional and fresh ore throughput. The study indicates full production at the Twangiza project to be over 300 000 oz/y of gold over the first three years, at average operating cash costs of $261/oz, based on current resources.

The process plant includes the addition of a processing facility to treat refractory ore, which will improve recoveries of refractory material from 36,4% to 64% for transitional ore and from 51,7% to 72,2% for fresh ore, resulting in an overall increase in gold recovery from 72,6% to 78%.

A standalone 30-MW hydroelectric plant will be developed separately, but in parallel with the Twangiza mine development to supply power to the mine.

Value
The initial project costs are estimated at $377,43-million. The hydroelectric plant will cost $133,8-million, including a contingency of $20,1-million.

Duration
The construction of the process plant and associated infrastructure is expected to take 24 to 30 months. The hydroelectric plant will be built simultaneously and has an expected timeline of about 28 months.

Client
Banro Corporation.

Key Contracts and Suppliers
Standard Chartered Bank (debt finance advisor).

Latest Developments
Banro Corporation has announced that it has finalised the appointment of Standard Chartered Bank as the exclusive debt finance advisor for the gold project. The decision to start construction of the Twangiza mine was announced in August 2009. In the same month, the Democratic Republic of Congo (DRC) government ratified, with minor modification, the fiscal agreement reached between the government and the company in February 2009, with respect to the company’s mining convention. Banro has been assured of the full cooperation and support of the DRC’s central and provincial governments, as it moves forward to develop its wholly owned gold projects in the country.

In order to fast-track gold production and cash flow for the company, Banro decided to start construction of the mine in parallel with the raising of debt capital and, to this end, recently acquired a refurbished processing plant. The technical team to build the Twangiza mine was hired subsequently.

The company intends to operate the plant as part of a low-cost phase I oxide-mining operation. It is planned that the plant will be expanded in subsequent years by using the enhanced balance sheet resulting from phase I operations. It is estimated that production from this first-phase plant will be around 100 000 oz/y of gold, at a total operating cash cost of less than $350/oz.

The company estimates the capital cost for phase I of the project to be about $145-million, including contingencies.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Banro Corporation, tel +1 416 366 2221 or email info@banro.com.