TORONTO (miningweekly.com) – Democratic Republic of Congo- (DRC-) focused gold miner Banro Corporation in the December quarter produced more gold than in any previous period since starting its operations.

The Canadian miner, which exploits the 210-km-long Twangiza-Namoya gold belt, in the South Kivu and Maniema provinces of western DRC, on Monday reported that its Twangiza operation poured 8 071 oz in October, 9 825 oz in November and 11 549 oz in December for a fourth-quarter total of 29 445 oz of gold.

Its new Namoya operation poured 1 749 oz in October, 3 042 oz in November and 4 000 oz in December, for a fourth-quarter total of 8 791 oz of gold.

Together, Twangiza and Namoya produced 38 236 oz of gold during the period.

Banro said management at both operations were focused on operational and cost efficiencies throughout the year. In particular, the company had taken significant steps to ensure that operations were less hindered during the frequent periods of adverse weather conditions at each site.

As a result of the operational efficiency drive, Twangiza's output grew significantly throughout the year, while Namoya also experienced strong quarterly output growth.

Banro noted that it had bought a second-hand agglomeration drum, required to improve the Namoya processing plant. The drum was currently being transported by truck convoy from Entebbe, in Uganda, and was scheduled to arrive mid-January. Other equipment necessary for the operation of the drum was due to arrive on site during the month.

Site civil work for the installation of the drum, its feed conveyors and other ancillary equipment started in November. The upgrade was expected to be complete and commissioned by mid-February.

''The inclusion of the agglomeration stage (with cement added as a binder) into the Namoya heap leach circuit is expected to allow for more efficient processing of the fines content of the Namoya ore and ensure more efficient reagent percolation in the heap process, leading to better gold recovery," Banro CEO and president John Clarke said.

The Namoya operation’s production profile was expected to  increase incrementally from its current level of about 4 000 oz/m achieved during December to a monthly rate of up to 6 000 oz/m by the end of the first quarter.

With heap leach operations taking several months of continuous percolation to fully recover the leachable gold, the full benefits of the improvements to the heap leach circuit were expected to build up during the second quarter to a monthly gold output rate of up to 8 000 oz/m by mid-year 2015.

FORWARD SALES

Banro also on Monday announced that it had started to look at alternative sources of funding, after it had agreed to delay a $41-million forward gold sales contract related to the Twangiza mine with Gold Holding, owing to “internal issues” at the financier.

Under the proposed contract, Banro would have delivered in return for a prepayment 40 500 oz of gold in tranches of 10 125 oz over four years.

Banro said that as a result of the delay in closing the transaction and the impact it would have on its cash flow, it was now progressing alternative options and “careful cash management”.

These alternatives included discussing forward gold sale and gold streaming transactions with other potential investors, as well as ongoing discussions with its major trade payable suppliers to settle up to about $16-million in accounts payable by way of forward gold sale arrangements.