Afferro Mining Inc. - Filing of Preliminary Economic Assessment for Nkout Project
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LONDON, UK, July 12, 2012 /CNW/ - Afferro Mining Inc. ("Afferro" or "the Company"), the exploration and development company focused on iron ore in West Africa is pleased to announce the filing of its National Instrument 43-101 ("NI 43-101") compliant preliminary economic assessment ("PEA") for the Nkout project in Cameroon ("Nkout"). This follows the news release dated 28 May 2012 announcing the details of the PEA.
With this news release, the Company is reporting the filing as required under the NI 43-101. A copy of the document may be obtained via www.sedar.com and on the Company's corporate website www.afferro-mining.com. The previously announced highlights of the Nkout project are as follows:
- Net Present Value post-tax between US$1.1bn and US$4.6bn
- Based on an average production rate of 15 to 35 million tonnes per annum
- Internal Rate of Return post-tax between 15% and 24% on an un-geared basis
- Life of mine between 21 and 48 years
- Production anticipated to commence H2 2017
- Funding required of between US$2.5bn and US$3.9bn on a shared infrastructure basis
- Payback period from production between 4 and 6 years
- Competitive cash operating costs of between US$32.7 and US$37.7 per tonne of product (pre-royalty)
- PEA based on NI 43-101 Mineral Resource Estimate of November 2011. A further resource statement should be published imminently
- Third party access confirmed by Government of Cameroon in the joint infrastructure vehicle with Sundance Resources
- Significant interest from potential strategic partners with a number of confidentiality agreements signed and discussions ongoing
- Detailed metallurgical testwork commissioned with SGS Lakefield Oretest Pty Ltd. in Western Australia
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 1.18Bt at 32.7% Fe and an Inferred mineral resource estimate of 1.34Bt at 30.4% Fe. Afferro currently has a cash position of $51m, leaving it well placed for medium-term funding of all its projects.
The technical contents of this release relating to the PEA have been reviewed by Ms. Julia Martin, P.Eng., MAusIMM (CP) and a Qualified Person in accordance with NI 43-101, who is a full-time employee of AMC Mining Consultants (Canada) Ltd. and independent of Afferro Mining Inc.
Howard Baker has 18 years' experience in the mining industry and 10 years' experience in the exploration, definition and mining of iron ore Mineral Resources. Howard 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. An NI 43-101 technical report titled "Mineral Resource Estimate for the Nkout Iron Ore Project", dated 15 November 2011, has been filed on SEDAR.
Note that the PEA is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as mineral reserves. By the very nature of the PEA, there is no certainty that the economic value of this project will be realised.
This announcement includes certain forward-looking statements. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various known and unknown risks and uncertainties as well as other factors. Such forward looking statements are subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including delays in obtaining or failure to obtain required regulatory approvals. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Information about the risks and uncertainties of the Company's business is provided in its disclosure materials, including its Annual Information Form and the MD&A for the 12 months ended 31 December 2011, available under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actions, events or results to differ materially from those described in forward looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein, speaks only as of the date hereof (unless stated otherwise) and, except as may be required by applicable law, Afferro disclaims any obligation to update or modify such forward-looking statements, either as a result of new information, future events or for any other reason.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
For further information please see the Company's web site at www.afferro-mining.com or contact one of the following:
Afferro Mining Inc.
Luis da Silva / Bevan Metcalf / Jeremy Cave
Tel: +44 (0) 20 7257 2930
Nominated Adviser: Neil Elliot
Corporate Broker: Chris Sim
Tel: +44 (0) 20 7597 5970
RBC Capital Markets
Joint Broker: Martin Eales / Richard Hughes
Tel: +44 (0) 20 7653 4000
Pelham Bell Pottinger
James MacFarlane / Daniel Thöle
Tel: +44 (0) 20 7861 3232