TIDMAFF
RNS Number : 0483E
Afferro Mining Inc.
07 May 2013
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
07 May 2013
TSX-V: AFF
AIM: AFF
AFFERRO MINING INC.
Maiden Mineral Resource Statement For Ntem
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.
Zone Resource Tonnes Fe % SiO(2) Al(2) P %
Category (Mt) % O(3)
%
--------------------- -------------- ------- ------ ------- ------ ------
Oxide Measured
--------------------- -------------- ------- ------ ------- ------ ------
Indicated
--------------------- -------------- ------- ------ ------- ------ ------
Meas. + Ind.
-------------- ------- ------ ------- ------ ------
Inferred 12.8 36.44 40.92 3.12 0.041
------------------------------------ ------- ------ ------- ------ ------
Magnetite Itabirite Measured
--------------------- -------------- ------- ------ ------- ------ ------
Indicated 39.1 33.95 44.82 2.01 0.054
------------------------------------ ------- ------ ------- ------ ------
Meas. + Ind. 39.1 33.95 44.82 2.01 0.054
------------------------------------ ------- ------ ------- ------ ------
Inferred 63.6 34.42 44.37 1.78 0.059
------------------------------------ ------- ------ ------- ------ ------
TOTAL Measured
--------------------- -------------- ------- ------ ------- ------ ------
Indicated 39.1 33.95 44.82 2.01 0.054
------------------------------------ ------- ------ ------- ------ ------
Meas. + Ind. 39.1 33.95 44.82 2.01 0.054
------------------------------------ ------- ------ ------- ------ ------
Inferred 76.4 34.24 44.54 1.87 0.057
------------------------------------ ------- ------ ------- ------ ------
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 16 and 41
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.
Contact 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) 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
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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