TORONTO, Jan. 15, 2013 /CNW/ - Ferrum Americas Mining Inc., TSXV-FEM ("Ferrum" or the "Company") is pleased to announce the results of the maiden independent National Instrument (NI) 43-101 Mineral Resource estimate for the Company's Cerro Rojo iron ore project in eastern Bolivia.
The In-Pit Mineral Resource Estimate, prepared by P&E Mining Consultants Inc., ("P&E") includes Indicated resources of 111.0 million tonnes at 48.1% Fe and Inferred resources of 175.9 million tonnes at 48.8% Fe utilizing a 15% iron cut-off grade.
At a cut-off grade of 50% Fe, In-Pit Indicated resources are 31.2 million tonnes at 51.5% Fe and Inferred resources are 63.0 million tonnes at 52.0% Fe.
This is the first resource estimate for the Cerro Rojo iron ore deposit, which is located in eastern Bolivia approximately 55 kilometres west of Puerto Suarez and the Hidrovia River system near Corumba, Brazil. The Corumba Iron Ore District hosts a number of world class iron ore deposits including the large El Mutun deposit and Vale's Corumba mining operations.
Commenting on the new resource estimate, Nick Tintor President and CEO of Ferrum said, "We are very encouraged by our maiden resource estimate which has defined significant open pittable resources at a relatively high grade of up to 52% Fe. Combined with the proximity of the project to barge logistics on the Hidrovia river system, we believe Cerro Rojo has the potential to support a viable iron ore mining operation."
Resource Estimate Details
The mineral resource estimate is confined within a 2,800-metre strike length, an average true thickness of 68 metres and average down dip length of 450 metres. This mineralized zone remains open to the west and to the east along strike and at depth. The resource model was based on 21 diamond core drill holes completed on 14 cross-sections totalling 2,586 metres of drilling.
In-Pit Mineral Resource Estimate at 15% Fe Cut-Off (1)(2)(3)(4)
|Classification||Tonnes (M)||Fe %|
In-Pit Mineral Resource Estimate at 50% Fe Cut-Off (1)(2)(3)(4)
|Classification||Tonnes (M)||Fe %|
- Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
- The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to the Indicated or Measured mineral resource category.
- The mineral resources in this press release were estimated using the inverse cubed grade interpolation method and the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions adopted by CIM Council.
- P&E utilized a mining cost of $2.00/rock tonne and a charge of $15.00/ore tonne for the total processing, G&A, and freight costs. The process recovery, estimated to be 85%, an Iron ore price of $1.50/dmtu and a 45º overall pit-slope, were used to complete the Whittle pit optimization and estimate the portion of in-situ Mineral Resource within the pit shell.
Contaminants are generally low. Ferrum believes that with further beneficiation test work, contaminant levels may be reduced further.
The Company believes there is considerable exploration potential to increase resources at Cerro Rojo, especially towards the west where banded iron formation in outcrop has been mapped west of the last drill hole CR12-17 which intersected 59.3 metres grading 52.4% Fe. This adds another 1,200 metres of prospective strike which will be followed up later this year.
As a result of the very consistent nature of the iron mineralization at Cerro Rojo which correlates very well over long distances from section to section, the likelihood of finding additional resources is considered good.
Preliminary field mapping has also identified another banded iron formation unit striking parallel to and located 500 metres north of Cerro Rojo. This iron formation, which is characterized by a subtle discontinuous magnetic response, has never been drilled tested. Prospecting and mapping will be conducted to better understand the dimensions and iron grades of this zone in outcrop. Mapping and compilation work completed by previous companies, suggests a potential strike length in excess of 3,000 metres.
Beneficiation Test Work Program
Ferrum has engaged Mintrex Pty. Ltd., an Australian-based metallurgical and process design engineering consultancy with expertise in iron ore beneficiation. The first sample totalling 9 kilograms of drill core has been shipped to Mintrex as part of an initial beneficiation test program. Results from this program are expected in the first quarter of 2013.
As a result of the high grade nature of iron resources at Cerro Rojo of up to 52% Fe, the beneficiation work will focus on determining a simple upgrading process to produce a direct shipping ore, ("DSO"). The Cerro Rojo-Mutun-Corumba region of Bolivia and Brazil is characterized by hosting zones of secondary enriched iron ore or DSO.
Quality Control-Quality Assurance
Sample preparation is being carried out at ALS Minerals lab in Oruro, Bolivia. ALS is a multinational company which operates to ISO 9001 quality assurance standards. All samples are HQ core and vary in length from 1.5 to 4 metres. When received at ALS laboratory in Bolivia, the sample is logged in the tracking system, weighed, dried and finely crushed to better than 70% passing a 2 millimetres (Tyler 9 mesh, US Std. No.10) screen. A split of up to 250 grams is taken and pulverized to better than 85% passing a 75 micron (Tyler 200 mesh, US Std. No. 200) screen. These pulps are sent to ALS Chemex Lima and grades are reported as total Fe%. Assays are completed using the "High Grade/Ores Method" and XRF analysis. The QA/QC program included the insertion of systematic standards, blanks and duplicate samples within every sample batch submitted to ALS. In addition, ALS inserts its own duplicate samples. The results from these control samples indicate an acceptable consistency of analysis.
P&E conducted a site visit in early November 2012 where sampling protocols were audited and ten independent verification core samples were collected and brought back to Canada for iron and bulk density analysis at Agat Laboratories of Mississauga, Ontario.
Agat Laboratories are accredited to international certification standards ISO 9001 and ISO/IEC 17025.
Cerro Rojo is located approximately 55 kilometres from Puerto Suarez which is located on the Hidrovia river system, the Mississippi of Latin America according to The World Bank(1). Large barge convoys are currently used to transport iron ore down river to off load sites in Argentina.
Vale and MMX, both operating in the Corumba-Urucum Iron Ore District in Brazil across from Puerto Suarez, are currently shipping more than 8 million tonnes of iron ore annually utilizing barge tug convoys on the Hidrovia.
|(1) "Strengthening Bolivia's Competitiveness-Export Diversification and Inclusive Growth" A World Bank Country Study, 2009, The World Bank|
Cerro Rojo Project
Cerro Rojo is a large Neoproterozoic banded iron formation which is part of the regional iron ore trend extending into Bolivia from the world class Corumba-Urucum iron ore fields located 75 kilometres to the east in Brazil. Cerro Rojo strikes for more than 4 kilometres and has been mapped for more than 1,000 metres along its dip slope.
Preliminary metallurgical test work completed by Ferrum on surface samples, generated excellent results suggesting iron ore from Cerro Rojo will liberate well and can be upgraded to produce a product suitable for the steel markets. The test work shows that a good quality iron concentrate can be produced at a relatively coarse grind size and with a high mass yield. (See Press Release date January 19, 2012 for complete details of the metallurgical test work)
About Ferrum Americas Mining
Ferrum Americas is focused on developing low capital expenditure iron ore projects in the Americas which are characterized by access to logistics and transportation to markets and relatively simple beneficiation processing requirements.
The Company is also currently evaluating additional iron ore projects in neighbouring jurisdictions which meet the objectives listed above, including proximity to logistics and markets and requiring relatively small capital expenditure requirements to be brought to production.
Ferrum Americas has rights to acquire a 98% interest in the Cerro Rojo iron ore project in Bolivia. Located 600 kilometres east of Santa Cruz and approximately 55 kilometres from Puerto Suarez and the Hidrovia river system near Corumba, Brazil, Cerro Rojo is a large banded iron formation striking for more than 4 kilometres, according to reports prepared by Rio Tinto in 1999 and verified by Ferrum.
Mr. Eugene Puritch, P. Eng and Paul Pitman, P. Geo., both Qualified Persons as defined by National Instrument 43-101, have reviewed and approved the contents of this press release.
Mr. Alain Vachon, P.Geo., the Company's Qualified Person as defined by National Instrument 43-101, has also reviewed and approved the contents of this press release.
Forward Looking Statements
This news release may contain forward-looking statements that are based on Ferrum Americas Mining Inc.'s expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
Neither 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: Ferrum Americas Mining Inc.
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