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We're sitting on a world class gold belt - Simon Village, Banro Corporation
In an interview on Radio 2000 @ 18:35 on Wednesday, 4 October 2006
[miningmx.com] -- THE increase in gold reserves to over 10 million oz provided further evidence that Banro Corporation's Twangiza prospect in the eastern Democratic Republic of Congo (DRC) was "a world class gold belt", said Simon Village, executive chairman of Banro.
The Twangiza gold belt recorded a 230% increase in gold reserves this year and was now estimated to contain 10.8 million oz of mineable gold. Village was speaking on the Moneyweb Power Hour, broadcast on Radio 2000.
Village said that Banro's activities had not been interrupted while the country's first democratic elections were underway.
He expected that the second round of democratic elections would begin on November 30 with the country's governors installed by January 16. "The DRC has been in hibernation for 40, 50 years," Village said.
Commenting on the recent decline in the gold price, Village said a
temporary correction was underway related to improved sentiment towards US equities.
This in turn was connected to the decline in the oil price which improved the outlook for costs incurred by companies that were exposed to energy prices. However, Village believed the US economy and the dollar in particular would fall under pressure.
"This is not a true reflection of the US economy. The smart money thinks the dollar will depreciate," he said.
Village worked at the World Gold Council (WGC), helping to float a number of gold-backed exchange traded funds (ETFs) after leaving HSBC in South Africa.
Commenting on the ETFs, Village said nearly $9bn had been invested in such products.
"They helped stimulate the gold price on the way up," he said. Plans to develop new products by the WGC would further whet the appetite of investors in gold, he said.
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