Feed conveyor to
Ball Mill Number 1 at
Banro’s Twangiza mine
 
Toronto, Canada — 25 June 2012 – Canadian-based Banro Corporation’s Twangiza gold mine in the Democratic Republic of Congo (DRC) is scheduled to reach commercial production in late August “’ a month later than originally expected.

A statement issued by the company here said gold production from the operation to date had averaged approximately 60% of the rated capacity of the plant, primarily because of the downtime of the No. 1 Ball Mill due to motor problems.

The statement added that the cause had been identified as excessive vibration on the motor resulting from an inadequate frame structure supporting the ball mill motor. Production would continue below nameplate capacity through July, with the ramp-up to full production targeted a month later than expected.

Despite the delay in reaching commercial production, however, the company remains self-funding with positive cash flow from the Twangiza mine.

"Although the difficulties we have experienced with the mill motor have frustrated our scheduled ramp up to full production, I am confident that with the issue of the No. 1 Ball Mill now pinpointed and being rectified, we can achieve our targeted monthly production rate within the third quarter,” commented Banro president and CEO Simon Village.

“During the past six months of commissioning, the team has also worked through all aspects of becoming an integrated gold company, and this has led to a number of material cost reductions, which will have an immediate impact on the bottom line,” he added.

“In addition to these improvements, as well as the recent move to owner operator mining, we are continuing to strengthen our technical and operational management,” said Village. “I remain very pleased with our progress in making the transition to a low cost gold producer, and with the advancement of the key value drivers to date across all areas of production, development and exploration.”

Twangiza is expected to produce about 120,000ozpa of gold over a currently expected mine life of seven to eight years.

Source: Banro Corporation. For more information, click here.