Afferro Mining Inc. - Encouraging DSO Metallurgy Results From Nkout

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

LONDON, UK, Dec. 17, 2012 /CNW/ - Afferro Mining Inc. ("Afferro", TSX-V & AIM: AFF) announces encouraging results from the direct shipping ore ("DSO") bulk metallurgical testing conducted on material from the Nkout project. Results from the remaining bulk metallurgical testing are on track to be released in January 2013.

Highlights:

  • Over 5 tonnes of potential DSO material tested from 12 representative holes across the Nkout deposit
  • Fines product achieved with a 63.4% iron grade and low deleterious materials, using simple attrition scrubbing
  • Low-cost crushing implied due to the soft, incompetent rock with a very low bond work index of 2.6kWhr/t
  • Simple crushing circuit expected: high throughput and low capital cost
  • Saprolite and magnetite bulk metallurgical testing expected to be delivered in January 2013
  • Scale of testing sufficient to support pre-feasibility study ("PFS"), to commence in Q1 2013

Afferro's CEO, Luis da Silva, commented:

"The quality of the DSO we have identified at Nkout further enhances the viability of the project and underlines our confidence in its continuing development. This progress has been acknowledged by the Government of Cameroon, which now classifies Nkout at "Project" level having been promoted from "Exploration" level, highlighting its strategic importance to the Country.

"The testwork implies that the first stage of DSO production at Nkout should be low-cost, with low capital intensity, yielding a high-grade product of 63.4% iron with low deleterious materials. This early, low-capex stage of production will be examined in the PFS, commencing in Q1 2013. We look forward to the remaining metallurgical results, to be released in January 2013."

Summary of DSO Metallurgical Testing and Results

Metallurgical testwork was completed on 12 PQ-size (4.6 inch outside diameter) holes taken from across the DSO mineralisation identified at Nkout to date. The total weight of these samples was in excess of 5 tonnes. This testwork is sufficient to support the PFS, which is expected to commence in Q1 2013.

The physical test work suggests that the Nkout DSO material is relatively fine and incompetent. After single-stage crushing, nearly 40% of the DSO material was finer than 10mm. Bond impact crushing work index measurements averaged a very low 2.6 kWhr/t. This suggests that the energy required for crushing should be low, and that the simple crushing circuit should have high throughput and low capital cost.

Each sample was subjected to drop-tower testing in order to estimate the quantity of lump that could be produced from the Nkout DSO resource. Lump production only averaged 10.6%, suggesting that it would not be feasible. However, a single fines product from the operation will further simplify the process flowsheet and reduce capital costs.

Attrition scrubbing testwork on samples of the fines product suggests that this method could benefit the operation. Scrubbing was shown to be able to increase the iron grade by approximately 4 percentage points to 63.4%. It also reduced the alumina content from 3.5% to just over 2% and reduced silica content from 7.6% to 4.3%. Additional planned scrubbing testwork is anticipated to further improve the product quality. This testwork would target finer crush sizes and also examine the feasibility of scrubbing high-grade Saprolite samples to achieve DSO product quality.

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 a National Instrument 43-101 ("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.

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.

Forward-looking Statements

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 its MD&A for the 12 months ended 31 December 2011, available under the Company's profile on SEDAR at www.sedar.com.  Factors that could cause actual results or events to differ materially from current expectations include but are not limited to:  exploration risks, the grade and recovery of ore which is mined varying from estimates; estimates of future production, mine development costs, timing of commencement of operations; changes in exchange rates; access to capital; fluctuations in commodity prices; and adverse political and economic developments in the countries in which we or our investments operate.  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 of this release.

SOURCE: Afferro Mining Inc.

For further information:

Afferro Mining Inc.
Luis da Silva / Jeremy Cave
Tel:  +44 (0) 20 7010 7680

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

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Afferro Mining Inc.

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