TIDMAFF
RNS Number : 4829H
Afferro Mining Inc.
12 July 2012
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
12 July 2012
TSX-V: AFF
AIM: AFF
AFFERRO MINING INC.
Operations Update
Afferro Mining Inc. ("Afferro" or the "Company"), the
exploration and development company focused on iron ore in
Cameroon, is pleased to provide an update on operations and
potential strategic investors.
Highlights:
- Reconnaissance drilling of the Ntem target (FeO8) completed in
June 2012, with 3,200m drilled over 34 holes. Results expected in
Q3 2012
- Reconnaissance drilling of the D8 target at the Nkout Iron Ore
Project ("Nkout") completed in May 2012, with 2,000m drilled over
39 holes
- Current drilling focussed on Nkout East, to define the strike
and thickness of a previously intercepted high grade DSO zone
- Ngoa (Essong exploration permit) follow-up drilling programme
on-going, with a total of 1,800m drilled over 33 holes to date.
Results expected in Q4 2012
- Akonolinga reconnaissance drilling programme expected to start
in Q4 2012, following grab sampling, trail pits and the recent
interpretation of airborne magnetics
- Preliminary Economic Assessment ("PEA") for Nkout outlined the
economic viability of the project and provided a recent catalyst in
progressing discussions with potential strategic partners
Luis da Silva, Chief Executive Officer of Afferro,
commented:
"The first half of the year has seen substantial operational and
corporate progress. The Company is in discussion with potential
strategic partners for Nkout and has appointed Canaccord Genuity
Limited ("Canaccord") to assist in this process. The release of the
PEA in May has provided a further catalyst for discussions with
potential strategic investors."
On the ground, drilling at Nkout following the fourth Mineral
Resource Estimate ("MRE4") has focussed on delineating further high
grade saprolite and potential DSO and delivering the 5 tonnes of
Direct Shipping Ore ("DSO"), 10 tonnes of saprolite and 10 tonnes
of magnetite BIF for bulk metallurgical testing. Drilling at Nkout
has continued in order of prospectivity. In May, we completed
drilling at the D8 target, adjacent to Nkout West, and are
currently drilling at Nkout East."
It is also important to note the significant operational
progress that we have made at our other three exploration permits
in the south of Cameroon: Ntem, Essong (Ngoa) and Akonolinga, which
together cover 1,224km(2) . Results from the reconnaissance
drilling programmes at Ntem and Ngoa are expected by Q3 and Q4 2012
respectively and drilling is expected to commence at Akonolinga in
Q4 2012."
Nkout
The focus of drilling for the recently delivered MRE4 was on
magnetite at Nkout West and potential DSO. After the completion of
drilling for MRE4 during March 2012, the focus has been to
delineate additional DSO and high grade saprolite. A reconnaissance
drilling programme has been completed at D8, a magnetic anomaly
adjacent to Nkout West. This covered 2,000m over 39 holes. Current
drilling at Nkout is focussed on Nkout East, where intercepts
including NKEHC051 (52.5m @ 58.2% iron) and NKEHC056 (25.5m @ 59.2%
iron) are being followed up to establish both strike and thickness.
All of this drilling will be collated for a further update to the
mineral resource estimate. The PEA models the processing of all
material at the most capitally intensive magnetite phase. An
earlier DSO/saprolite phase would boost project economics by
starting production with a less capital intensive DSO/saprolite
operation, so any additional material can be reflected as upside to
the PEA.
Ntem
Ntem is located only 80km from the port currently under
construction, near Kribi, by the Cameroon Government. Drilling at
Ntem started at the end of Q1 2012, following the discovery of
FeO8, a high intensity magnetic anomaly, from the airborne
geophysics interpreted at the end of 2011. This drilling was
carried out efficiently and was completed by June. The
reconnaissance drilling of 34 holes for a total of 3,200m was
focussed on identifying the structure and potential, with 31
shallow holes and three deeper holes into the magnetite BIF.
Results are expected in Q3 2012.
Ngoa
The Essong exploration permit, where Afferro has a 70% interest,
contains the Ngoa target. Ngoa is approximately 5km from Nkout
Centre. The focus of the drilling programme has also been the
delineation of DSO and high grade saprolite material. Drilling is
on-going, and when added to the 10 holes drilled in 2010, a total
of 33 holes have now been drilled over 1,800m. Results are expected
in Q4.
Discussions with potential strategic partners
Afferro continues to hold discussions with potential strategic
partners. The Company has signed a number of confidentiality
agreements with third parties who have expressed an interest in
Nkout. The PEA presented a catalyst for progressing these
discussions, which have centred on attracting a long-term partner
for a minority joint venture interest at the project level, or
possibly a stake at both project and corporate levels. With a
strategic partner in place Afferro will be able to accelerate the
development of Nkout.
The Company has engaged Canaccord to progress these discussions
with a number of potential partners. Most recently, the Company
held a series of meetings with the interested parties to discuss
the PEA and infrastructure options. While the Company can make no
guarantee of a partnership, it expects to make further progress in
negotiations over the coming months.
Afferro Mining Inc.
Luis da Silva / Jeremy Cave
Tel: +44 (0) 20 7257 2930
Investec
Nominated Adviser: Neil Elliot
Corporate Broker: Chris Sim
Tel: +44 (0) 207 597 5970
RBC Capital Markets Joint Broker: Martin Eales / Richard
Hughes
Tel: +44 (0) 20 7653 4000
Pelham Bell Pottinger
Daniel Thole / James MacFarlane
Tel: +44 (0) 20 7861 3232
About Afferro Mining Inc.
Afferro is an established exploration and development company
listed on the TSX-V (AFF) and AIM (AFF). Afferro's portfolio
includes the 100% owned Nkout, Ntem and Akonolinga iron ore
projects. It also holds a 70% interest in the Ngoa project, an
exploration target bordering Nkout. Nkout comprises an NI 43-101
compliant Indicated Mineral Resource Estimate of 1.19Bt at 32.9% Fe
and an Inferred mineral resource estimate of 1.33Bt at 30.3% Fe.
Afferro currently has a cash position of $51m, leaving it well
placed for medium-term funding of all its projects.
Qualified Person
Howard Baker (MAusIMM(CP)) has 18 years' experience in the
mining industry and 10 years' experience in the exploration,
definition and mining of iron ore mineral resources. Mr Baker is a
full-time employee of SRK Consulting (UK) Ltd., an independent
consultancy, and has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration,
and to the type of activity which he is undertaking to qualify as a
Qualified Person in accordance with NI 43-101 and a Competent
Person as defined in the June 2009 Edition of the AIM Note for
Mining and Oil & Gas Companies. Howard Baker consents to the
inclusion in the announcement of the matters based on their
information in the form and context in which it appears and
confirms that this information is accurate and not false or
misleading.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this release.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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