Exploration

Lugushwa

Since 2015, the exploration program at Lugushwa Mining SA (“Lugushwa”) has been limited to low-level ground maintenance and oxide target generation for future follow-up. Today, as Banro builds its pipeline of generative projects to support its production growth to 1M oz of gold production, Lugushwa play a major role in near term construction / production. Given the stage of the development of Twangiza and Namoya mines; and their transition (one day) to underground operations; Lugushwa is key to filling the pipeline gap in the near term with new production.

Late Stage Exploration Project

 

In 2019, Banro plans to accelerate Lugushwa through the drill-out to feasibility for the Lugushwa project and evaluate the resource potential of deeper targets. The exploration activities are mainly along extensions to the known 15.3 kilometre northeast – southwest mineralized trend.

These activities will include:

  • Updating the geology and grade model

  • Complete a Preliminary Economic Assessment

    • 6,750m drill program utilizing a man portable diamond drill

    • Metallurgical sampling and geotechnical drilling

    • Evaluate oxide-only and oxide + sulphide scenarios

Ahead of the 2020 Feasibility Study, Banro plans to expand its oxide resource base and commence infill drilling.

  • 2019 – 11,250m program utilizing a man portable diamond drill

  • 2020 – 17,000m infill and exploration drilling

 

Reserves & Resources

  • Oxides: Indicated

    0.73 M oz Au;

    16.91Mt @ 1.35 g/t

  • Oxides: Inferred

    0.31 M oz Au;

    6.17Mt @ 1.56 g/t

  • Non-Oxides: Inferred

    3.22 M oz Au;

    65.01Mt @ 1.54 g/t

  • Mineralization

    The geological setting of the main mineralized trend at Lugushwa consists of meta-pelites, meta-siltstones, quartzite and dioritic sills. Mineralized quartz veins and stockworks occur as a network of interlocking conjugate sets with trends oriented from NE-SW and E-W to ESE-WNW with steep dips towards the SE and NW, and moderate dips towards the north respectively. Mineralization also occurs in the host rock between the quartz veins associated with disseminated sulphides.

    Drilling and mapping at Lugushwa to date has provided a clearer understanding of the mineralization controls. Gold mineralization is related to series of stacked shoots, often localized along shallowly plunging fold axes and in contacts of contrasting lithologies mainly metapelites, meta siltstones and meta diorites.

  • History of the Lugushwa Region

    Alluvial gold was first discovered at Lugushwa in the 1920s, although mining of these deposits does not appear to have begun until 1958. Limited exploration for primary gold deposits began in 1963 and led to the discovery of several deposits, including the Mapale G7, Simali, and ‘Filon de Luxe,’ deposits and the D18-19 and G20-21 Lugushwa deposits, plus some smaller zones. The majority of the primary gold mineralization was based on selective surface and underground development along specific mineralized quartz veins and stockworks. No significant open pit mining for primary gold mineralization has ever been conducted at Lugushwa.

    Between 1958 and 1996, at least 457,000 ounces of gold were produced from alluvial sources, with a further 10,000 ounces of gold being produced from primary sources, although the levels are most likely much higher.