Afferro Mining Inc. - Significant DSO potential identified at Nkout Centre

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES./

TSXV: AFF
AIM: AFF

LONDON, UK, Sept. 29, 2011 /CNW/ - Afferro Mining Inc. ("Afferro" or the "Company"), the TSXV / AIM listed exploration and development company, with iron ore projects in Cameroon and Liberia, announces that drilling at the Company's 100%-owned Nkout iron ore project in Southern Cameroon has intersected significant widths of high-grade material with direct shipping ore ("DSO") potential. The DSO material is located at surface in one minable area and will be included in the forthcoming November 2011 mineral resource estimate ("MRE") together with the revised banded iron formation ("BIF") resource.

Highlights:

  • Significant drilling intercepts in one cross-section with results that include:
    • 51m at 63.4% Fe;
    • 30m at 60.4% Fe; and
    • 48m at 58.6% Fe
  • Reconnaissance drill holes targeted at 200m intervals over a 1km extension.
  • These results support the existence of a high-grade cap overlaying a BIF deposit.
  • Assays pending for 63 holes, which should be included in the November 2011 MRE.
  • 18,500m now drilled at Nkout.
  • Five drilling rigs operating on site.
  • The scoping study for infrastructure and logistics at Nkout is expected to be published by the end of October.

Luis da Silva, Chief Executive of Afferro, commented:

"These results are very encouraging and continue to support the DSO potential of the Nkout project and the possibility of having an early phase of production. These adjacent DSO holes cover a width of 100m within a possible cap of width 300m and length 1km. We are very encouraged by the infill drilling programme, which will be contained in the November resource update.

The overall progress at Nkout is also excellent with further metallurgical testing underway, enabling the Company to obtain a better understanding of potential future products. The increase in the number of rigs will enable us to progress our resource drilling programme, and ultimately the project, more quickly, creating value for our shareholders."

DSO Potential at Nkout Centre
The intercepts shown in Table 1 below, support the case that there is potentially a significant high-grade cap overlaying the BIF at Nkout Centre, which would enable Afferro to commence production at an earlier stage requiring less initial capital expenditure. The DSO has been encountered in a line of adjacent holes, perpendicular to strike, with 50m spacing and approximately 200m from an existing hole that indicated DSO potential of 44m at 61% Fe (NKHC018).

Afferro's geological consultant, SRK Consulting (UK) Ltd, will estimate the size of this initial DSO deposit after results are received from holes drilled up to 1km along strike from the three-hole section disclosed above. These will be included in the resource statement expected to be published in November that will also further develop the BIF resource.

Operational Update
Afferro continues to make excellent operational progress at Nkout. Having delivered the MRE update three months ahead of schedule in June (1.42Bt at 33.6% Fe1), the Company is on track to deliver a further resource update in November. To date the Company has drilled 113 holes totalling 18,500m and the rate of drilling is expected to increase, with the addition of two further drill rigs bringing the total number of rigs on site to seven.

The scoping study for infrastructure and logistics, due in October, will estimate the capex required for Nkout firstly, as a stand-alone project and secondly, utilising the synergies resulting from infrastructure cooperation with other nearby iron ore developers, primarily Sundance Resources. From these early results the Company will obtain a deeper understanding of the economics of the project and the minimum resource required to justify an investment based on a standalone project.

Table 1. Summary of latest intercepts at Nkout Centre and Nkout West2

    From
(m)
To
(m)
Interval
(m)
Fe% SiO2% Al2O3% P% Comment
Nkout
Centre
NKDD023 49.4 83.4 34 36.95 39.89 0.79 0.04  
Nkout
Centre
NKDD023 131 153 22 32.53 48.43 0.32 0.04  
Nkout
Centre
NKDD023 163 185 22 33.27 45.19 1.7 0.05  
Nkout
Centre
NKGS011 1.98 10.6 8.62 44.15 14.14 11.79 0.09  
Nkout
Centre
NKHC021 0 185* 185 38.91 39.78 0.46 0.05  
Nkout
Centre
NKHC023 0 6.6 6.6 44.53 11.98 14.01 0.08  
Nkout
Centre
NKHC023 28.6 56.1 27.5 31.46 45.44 5.54 0.07  
Nkout
Centre
NKHC024 0 52.9 52.9 43.86 32.01 1.72 0.05  
Nkout
Centre
NKHC025 21.6 29.6 8 34.53 38.38 7.68 0.1  
Nkout
Centre
NKHC026 0 32 32 59.14 2.91 4.95 0.4 incl. 60.41%
Fe over 30m
Nkout
Centre
NKHC026 67 82.8* 15.8 40.02 39.31 0.61 0.05  
Nkout
Centre
NKHC027 0 72.6* 72.6 53.31 13.05 1.59 0.07 incl. 58.59%
Fe over 48m
Nkout
Centre
NKHC028 0 76.6* 76.6 56.94 12 3.15 0.13 incl. 63.39%
Fe over 51m
Nkout
West
NKWHC011 6.4 15.4 9 35.93 32.73 8.81 0.05  
Nkout
West
NKWHC011 80.4 97.9* 17.5 33.43 46.19 1.96 0.05  
Nkout
West
NKWHC012 0 14.4 14.4 43.76 23.44 7.23 0.06  
Nkout
West
NKWHC012 31.4 48.4 17 38.22 41.58 2.12 0.03  

* Hole ended in 30%+ Iron grades

Note 1: Nkout announcement dated 16th June 2011, 700.5 Mt @ 32.4% Indicated, 716.5 Mt @ 34.8% Inferred
Note 2: Results stated using a 30% Fe cut off and discarding any intercepts sub 5m.

About Afferro Mining Inc.
Afferro is an established exploration and development company listed on the TSXV (AFF) and AIM (AFF). Afferro's portfolio includes the Nkout iron ore project (the "Nkout Project"), and surrounding iron targets in Cameroon and which is subject to a resource expansion drilling programme. Afferro also has a 38.5% interest in the Putu iron ore project in Liberia (the "Putu Project"), which is subject to a resource expansion drilling programme and is moving through pre-feasibility managed by joint venture partner Severstal Resources (the mining division of London and Moscow listed OAO Severstal). In September 2010, the Putu Project was granted a 25 year renewable Mineral Development Agreement by the Government of Liberia.

Qualified Person
Howard Baker has some ten 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 mineralization 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 NI43-101 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.

 

 

SOURCE Afferro Mining Inc.

For further information:

Afferro Mining Inc.
Luis da Silva / Jeremy Cave
Tel: +44 (0) 20 7257 2930

Evolution Securities Limited
Nominated Adviser: Jeremy Ellis / Neil Elliot
Corporate Broker: Tim Redfern / Jonathan Wynn
Tel: +44 (0) 20 7071 4300

RBC Capital Markets
Joint Broker: Martin Eales / Richard Hughes
Tel: +44 (0) 20 7653 4000

Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 20 7861 3232

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Afferro Mining Inc.

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