Afferro Mining Inc. Operations Update

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

TSX-V: AFF
AIM: AFF

LONDON, UK, July 12, 2012 /CNW/ - 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 1,224km2. 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.

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.

SOURCE Afferro Mining Inc.

For further information:

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 Thöle / James MacFarlane
Tel: +44 (0) 20 7861 3232

Profil de l'entreprise

Afferro Mining Inc.

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