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LONDON, UK., Sept. 26, 2012 /CNW/ - Afferro Mining Inc. ("Afferro" or the "Company"), the exploration and development company focused on iron ore in Cameroon, is pleased to provide results for the reconnaissance drilling at the Ntem exploration permit, which is located 80km from the deep sea port under construction near Kribi. On the back of the encouraging initial drill results, the Company is planning a further drilling campaign and has commissioned an infrastructure scoping study.
- Targeted mineralisation remains open at depth, with potential additional strike extensions to the west of the deposit
- Mineralised intersections encountered in ~90% of reconnaissance drilling samples, including:
- 87m @ 37.0% Fe from 20m
- 18m @ 47.5% Fe from surface
- 125m @ 38.3% Fe from surface
- 51m @ 39.4% Fe from 26m
- 98m @ 38.3 % Fe from surface
- 64m @ 39.2% Fe from surface
- 38m @ 38.2% Fe from surface
- 62m @ 37.1% Fe from 48m
- Deposit consists of a series of magnetite Banded Iron Formation ("BIF") zones
- Phase 2 drilling programme of approximately 4,750m is planned, to quantify an initial resource
- Infrastructure scoping study is being commissioned to examine the economics of road haulage to minimise capex and provide earlier cashflow
- Attractive location, only 80km from Kribi deep sea port, currently under construction by the Government of Cameroon
- Potential to use 216MW Kribi power station, due to be commissioned by AES-Sonel, the State power company, in 2013
Luis da Silva, Chief Executive Officer of Afferro, commented:
"The encouraging results at Ntem provide Afferro with a new greenfield exploration target of significant scale. Fe08, the first anomaly of a number of targets tested by reconnaissance drilling, remains open at depth, with western extensions. It is strategically well located, less than 80km from the rapidly developing Kribi deep sea port and 10km to the north of the proposed South Cameroon Rail Corridor, which was recently highlighted as a planned route in the draft National Railway Master Plan by the Government of Cameroon.
"The results support further exploration and the Company is planning a further drilling campaign with a view to quantifying an initial resource. We have also commissioned an infrastructure scoping study to explore the viability of road haulage and the potential to utilise electricity from the 216MW Kribi power station due to be commissioned in 2013 (timing confirmed by AES-Sonel in January 2012). This project may provide a scalable mining operation requiring a reduced capital investment.
"Exploration has not been limited to Ntem. Afferro has been running exploration programmes at each of its four Cameroonian exploration permits concurrently this year. Drilling results are expected imminently from the Ngoa target (Essong exploration permit), which lies adjacent to the Nkout iron ore project. Field work at the Akonolinga project has been completed and results of surface sampling and pitting are due by the end of this year, at which point an initial drilling programme can commence."
Ntem Fe08 Anomaly
The Fe08 drilling target was interpreted as a magnetic anomaly by Southern Geoscience Consultants of Perth following an airborne geophysical survey conducted in Q1 2010. The first phase reconnaissance drilling campaign, comprising 3,200m of drilling over 34 holes (encountering mineralisation in 30 holes), and other field work was completed in Q2 2012.
The Fe08 mineralised envelope extends over one kilometre of strike containing multiple mineralised zones. Mineralisation intersected comprised a predominantly quartz magnetic banded iron stone. The magnetite BIFs are structurally deformed with associated amphibole meta-sedimentary country rock underlain by a strongly foliated granitoid gneiss basement. The mineralogy of the ore is dominated by magnetite and quartz.
The mineralised packages remain untested at depth, with additional strike extensions west of the defined exploration target area. Significant drill results are contained in Table 1 below.
Table 1 - Mineralised Intersections
|Hole ID|| Elevation
|Interval (m)|| Length
|Fe %|| Al203
*results are reported as down hole lengths with a lower cut-off grade of 30% Fe and include a maximum 5m of material below this threshold. Datum WGS84, Zone 33N
Continuing Exploration and Development at Ntem
Afferro has commissioned a structural interpretation of the drilling data to increase the geological understanding and confirm continuity of the mineralised lenses. Further resource drilling to explore the potential depth extent of the mineralisation and extent of resource potential is expected once this interpretation is complete.
An infrastructure scoping study has been commissioned to consider technical and economically feasible routes to market including utilisation of the bulk cargo wharfs being developed at the Kribi deep sea port prior to any development of the 'Route 3' mineral railway outlined in the draft National Railway Master Plan laid down by the Government of Cameroon.
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 US$ 51 million, leaving it well placed for medium-term funding of all its projects.
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 National Instrument 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.
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.
SOURCE: Afferro Mining Inc.
For further information:
Afferro Mining Inc.
Luis da Silva / Jeremy Cave
Tel: +44 (0) 20 7257 2930
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