Afferro Mining Inc. - Encouraging Results at Ngoa, Adjacent to Nkout

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TSX-V: AFF
AIM: AFF

LONDON, UK, Oct. 24, 2012 /CNW/ - Afferro Mining Inc. ("Afferro" or the "Company"), the exploration and development company focused on iron ore in Cameroon, is pleased to provide initial results for the exploration work undertaken at its 70% owned Ngoa prospect, which lies within the Essong exploration permit, adjacent to the Nkout iron ore project ("Nkout") and 20km from the proposed south Cameroon rail corridor.

Highlights

• Mineralised zone with 1km strike remains open at depth
• Drilling highlights, from 33 diamond drill holes over 1,790m, include:
• NGHC003  11.0m @ 61.1% Fe from surface
• NGGS026    8.8m @ 54.6% Fe from surface
• NGGS019  12.8m @ 47.0% Fe from surface
• NGGS002  28.0m @ 45.6% Fe from 2.6m
• NGGS021  15.6m @ 42.4% Fe from surface
• NGGS014  29.2m @ 40.9% Fe from surface
• NGGS010  14.7m @ 40.8% Fe from surface
• NGGS003  31.0m @ 39.8% Fe from surface
• NGGS010  28.2m @ 38.8% Fe from 37.8m
• Located adjacent to Nkout, with any resource likely to be processed centrally and enhance the economics of the current stand-alone Nkout project

Luis da Silva, Chief Executive Officer of Afferro, commented:

"Drilling results at Ngoa are encouraging with multiple intersections from surface above 40% Fe and a number of down-hole length intersections in excess of 55% Fe. We believe Ngoa can become a satellite resource to support scalable mining of up to 35mtpa at Nkout, which is situated less than 5km to the north of Ngoa. The recent preliminary economic assessment showed Nkout to be a robust project; additional high grade resources at Ngoa will enhance the already attractive economics."

"Afferro continues to explore all four of its exploration permits in Cameroon. With these initial results for Ngoa, Afferro has defined mineralised banded iron formations in three of these permits. Further results from additional drilling at Nkout are pending."

Ngoa Anomaly

Exploration at Ngoa was carried out in two phases. The first phase comprising 10 diamond drill holes totalling over 520m was completed in December 2010. A second phase of 25 holes totalling 1,270m was completed in June 2012. Drilling was targeted on two parallel, high intensity magnetic features striking north east to south west with approximately 1km of strike extent and coincident topographic high. The magnetic anomaly is the geophysical expression of quartz-magnetite bearing banded iron formations ("BIFs") at depth beneath a cap of laterite, indurated ferruginised saprolite and colluvial scree. Airborne magnetics were flown over the Ngoa area in Q1 2010 and interpreted by Southern GeoScience Consultants of Perth, Western Australia.

Results of the drilling are shown in Table 1 below. The higher grade intersections above 55% Fe are from weathered and oxidised primary iron rich BIF originally containing magnetite which is now altered to haematite. Mapping of limited surface outcrop, geophysical interpretation and interpretation of the current broadly spaced drilling suggest two parallel BIF units, striking north east to south west and dipping moderately to the north-west. The BIF mineralisation remains open at depth. The magnetite BIFs are structurally deformed with associated amphibole meta-sedimentary country rock underlain by a strongly foliated granitoid gneiss basement.

Table 1 - Ngoa Mineralised Intersections

*results are reported as down-hole lengths with a lower cut-off grade of 30% and a maximum internal waste of 5m. Datum WGS84,   Zone 33, some minor errors occur due to rounding. # reported with a >55% Fe COG.

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. Afferro's cash position at the end of Q2, 2012 of US$51 million, leaves it well placed for the medium-term funding of 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.

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 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) accept responsibility for the adequacy or accuracy of this release.

SOURCE Afferro Mining Inc.