Afferro Mining Inc. - Maiden Mineral Resource Statement For Ntem

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TSX-V: AFF
AIM: AFF

LONDON, UK, May 7, 2013 /CNW/ - Afferro Mining Inc. ("Afferro" or the "Company"), the exploration and development company focused on iron ore in Cameroon, is pleased to announce the maiden National Instrument 43-101 ("NI 43-101") compliant Mineral Resource for the Ntem iron ore project ("Ntem").

Highlights:

• A total Indicated Mineral Resource of 39.1 million tonnes ("Mt") at a grade of 34.0% iron ("Fe")
• A total Inferred Mineral Resource of 76.4 Mt at a grade of  34.2% Fe
• Positive pilot-scale metallurgical testwork indicates a saleable and high grade product

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

"The maiden resource marks an important step in the development of Ntem. This resource, which has potential to increase, is of an appropriate size to build a small-scale operation to drive early cash flow for Afferro. This would take advantage of Ntem's strategic location, only 80km from the deep-water port under construction south of Kribi, where a shipping berth for a small operation should be available from mid-2014. It is also close to the Kribi gas-fired power station with a projected output of 216MW.

This MRE follows the release of the metallurgical results last week, which point to a saleable and high-grade concentrate at a coarse grind size, with low deleterious materials, and the Company is now progressing further work to investigate the viability of the project. The infrastructure scoping study will be released shortly, and should, in the first instance, build on the idea of using road haulage to transport the magnetite concentrate to port, given the project's proximity to the coast."

Mineral Resource Estimate

The maiden Mineral Resource Estimate has been managed and prepared by Howard Baker of SRK Consulting (UK) Ltd. ("SRK") in accordance with the provisions of NI 43-101. Mr Baker is an independent Qualified Person as defined by NI 43-101 and its companion policy 43-101CP.

The definitions of Measured, Indicated and Inferred Mineral Resources, and Mineral Reserves as used in the report, are as defined in the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council.

SRK conducted multiple site visits to the Ntem Project during the course of the drilling programme. This included a qualified person site visit, undertaken by Dean McMinn of SRK. Mr McMinn is an independent Qualified Person as defined by NI 43-101 and its companion policy 43-101CP. A further site visit by Paul Stenhouse of SRK was undertaken to prepare a detailed structural evaluation of the project and additional site visits were undertaken by Colin Rawbone of SRK to ensure that compliance to all appropriate Quality Assurance/Quality Control ("QA/QC") procedures were maintained throughout the drilling programme.

The Ntem Mineral Resource Statement is shown below and is based on a metal price of USD1.4/dry metric tonne unit ("dmtu") for magnetite fines which is taken from SRK's internal consensus market forecast data. It should be noted that the results of the optimisation study undertaken to enable the reporting of the Mineral Resource Statement are insensitive to metal prices down to approximately USD0.9/dmtu. The Ntem project is wholly owned by Afferro.

Notes:
(1) Mineral Resources which are not Mineral Reserves have no demonstrated economic viability
(2) The effective date of the Mineral Resource is 3 May 2013
(3) The Mineral Resource Estimate for the Nkout deposit was constrained within lithological and grade based solids and within a Lerchs-Grossman optimised pit shell defined by the following assumptions; metal price of USD1.4/dmtu; slope angles of 16º and 41º in the oxide and fresh material; a mining recovery of 95.0%; a mining dilution of 5.0%; a base case mining cost of USD1.60/t and an incremental mine operating costs of USD0.05/t/10 metres ("m") below the 70 m reference RL and USD0.05/t/10 m above the 70 m reference RL; process operating costs of USD4.20/t crushed oxide and USD5.50/t crushed BIF ore; Oxide processing recovery of 60%; BIF processing recovery of 88% and G&A costs of USD0.78/t and USD0.96/t crushed oxide and BIF ore.
(4) Mineral Resources for the Ntem deposit have been classified according to the "CIM Standards on Mineral Resources and Reserves: Definitions and Guidelines (December 2005)" by Howard Baker (MAusIMM(CP)), an independent Qualified Person as defined in NI 43-101.

Ntem Resource Potential

The Ntem model is open along strike and SRK recognises that there is potential to increase the Mineral Resource Estimate by targeting material that falls below the optimised pit shell but remains potentially economic. This material, based on a metal price of USD1.4/dmtu is considered by SRK to be potentially economic, should sufficient exploration data be collected that confirms the geometry and continuation of the mineralisation and that enables a classified resource to be estimated. SRK has estimated that an additional 50 Mt to 150 Mt lies below the optimised pit shell used for constraining the Inferred and Indicated Mineral Resources. The potential quantity of tonnes is conceptual in nature as there has been insufficient exploration or demonstration of economic viability to report these in the Inferred Mineral Resource category at the current time. It is uncertain if further exploration will result in these targets being defined and reported in a future Mineral Resource Estimate. These potential tonnages reflect a range of material within SRK's wireframe solid models outlining the interpreted down dip extent of mineralisation.

Database Validation

The QA/QC programme for Ntem consists of alternating the insertion of a blank, standard and duplicate sample on a regular basis within the sample train. The Company uses standards with varying grades which are also alternated. All samples have been assayed at the accredited ALS Minerals in Ireland and ALS in Johannesburg. SRK found that the results of the above described QA/QC programme indicate that Ntem's assay databases were appropriate for mineral resource estimation.

Data Verification

Howard Baker and Dean McMinn, as Qualified Persons, completed the verification of data on which the maiden Mineral Resource Estimate was based. This verification included an assessment of QA/QC data, sample preparation and assay methodologies, density data, data inputs and survey data used in the estimate. Data was validated by using field checks, statistical methods and evaluating the Company's protocols.

Drilling, Geological Modelling, Resource Estimation Assumptions, Parameters and Methods

The Company recently completed a 7,400 m core drill programme on the Ntem (Fe08) property in south west Cameroon. The drilling confirmed the occurrence of a northeast-southwest trending magnetite bearing Itabirite that was discovered after the completion of regional grab sampling and aerial and ground magnetic surveys within the Ntem exploration permit area that is 100% owned by Afferro.

The drill programme that has been completed was designed to target the magnetite Itabirite and overlying oxidized cap material with 56 inclined drillholes intercepting on average a 40 m thick Itabirite unit.

SRK created a geological model based on the lithological logging, magnetic susceptibility data and incorporating the results of the structural study undertaken, enabling the hanging wall and footwall contacts of the Itabirite unit to be modelled and a three dimensional solid model to be created. The oxide cap was modelled using the magnetic susceptibility data and Loss on Ignition values.

A 5 m composite file was used in a geostatistical study (variography and Quantitative Kriging Neighbourhood Analysis, "QKNA") that enabled Ordinary Kriging ("OK") to be used as the main grade interpolation method. The interpolation used an elliptical search following the predominant dip and dip direction of the geological domains. The results of the variography and the QKNA were utilised to determine the most appropriate search and estimation parameters.

The interpolated block model was validated through visual checks and a comparison of the mean input composite and output model grades. SRK is confident that the interpolated block grades are a reasonable reflection of the available sample data.

The NI 43-101 compliant technical report will be filed on www.sedar.com within 45 days of the date of this announcement.

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 (subject to government rights).  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. Ntem comprises a National Instrument 43-101 ("NI 43-101") compliant Indicated Mineral Resource Estimate of 39.1Mt at 34.0% Fe and an Inferred Mineral Resource Estimate of 76.4Mt at 34.2% Fe. The Company had cash, cash equivalents and short-term deposits totaling $89m on the 31 December 2012.

Qualified Person

Howard Baker (MAusIMM(CP)) has 19 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, 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 matters relating to the geology, exploration results and mineral resources 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 2012, 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.