Afferro Mining Inc. AFF Nkout Iron Ore Project - Operations Update

  Afferro Mining Inc. (AFF) - Nkout Iron Ore Project - Operations Update

RNS Number : 8359Q
Afferro Mining Inc.
12 November 2012




12 November 2012



TSX-V: AFF

AIM: AFF

                                      

                             AFFERRO MINING INC.



                  Nkout Iron Ore Project - Operations Update



Afferro  Mining  Inc.  ("Afferro"  or  the  "Company"),  the  exploration  and 
development company focused on iron ore in Cameroon, is pleased to provide  an 
update on operations at its 100% owned Nkout project ("Nkout"). The Company is
continuing its programme of exploration for further potential direct  shipping 
ore ("DSO") zones.



Highlights

· High  grade intercepts  at  Nkout East  indicate  a potential  DSO  zone 
similar to that delineated at Nkout Centre. Highlights include:

o NKEGS003 44.8m @ 55.5% Fe from surface

o NKEGS008 85.5m @ 55.3% Fe from surface

o NKEGS010 101.8m @ 54.1% Fe from surface

o NKEGS004 77.3m @ 53.2% Fe from surface

o NKEHC070 84.3m @ 51.8% Fe from surface

· Metallurgical testwork shows that material above a 50% iron  mineralised 
cut-off is amenable to processing through the potential DSO plant with a  mass 
yield of approximately 75%

· Reconnaissance  drilling  of the  D8  target zone  ("D8")  identifies  a 
high-grade zone consisting  of iron-bearing saprolite,  overlying a  magnetite 
banded iron formation ("BIF") that is open at depth. Highlights include:

o NKDE026 35.9m @ 38.9% Fe from 4.0m

o NKDE004 35.8m @ 38.9% Fe from 13.6m

o NKDE010 44.5m @ 37.8% Fe from surface

o NKDE023 30.5m @ 37.7% Fe from 3.0m

· Assays returned from a total of 77 diamond drill holes totalling  4,872m 
of drilling. Assays currently outstanding from a further 108 holes,  totalling 
6,434m of drilling

· Further high-grade intersections from Nkout Centre include:

o NKHC139 96.4m @ 47.4% Fe from surface

o NKHC147 71.0m @ 46.5% Fe from surface

o NKHC140 59.5m @ 46.5% Fe from surface

o NKHC144 55.9m @ 45.6% Fe from surface

o NKHC141 65.0m @ 45.2% Fe from surface

· Drilling  programme to  continue,  targeting identification  of  further 
potential DSO resource at Nkout







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



"These excellent  results from  our  on-going exploration  programme  identify 
further DSO resource at Nkout. In particular, the results indicate a  separate 
DSO zone  in  Nkout  East,  with  wide intercepts  grading  up  to  55%  iron. 
Metallurgical testing has indicated that material with a 50% cut-off should be
amenable to processing with a DSO plant.



These results,  the  results from  assays  pending and  results  from  further 
drilling will be collated  in an updated  Mineral Resource Estimate  ("MRE5"), 
which will  be used  as  the basis  for a  prefeasibility  study which  is  to 
commence in Q1 2013"





Nkout Iron Ore Project



Afferro has continued  reconnaissance and resource  drilling at Nkout  through 
2012. The  results reported  are  from 77  drill  holes comprising  4,872m  of 
drilling conducted  between 16  April 2012  and 20  August 2012.  Drilling  is 
on-going and assays are pending from 108 holes comprising 6,434m. Results from
all of this drilling will be incorporated into MRE5 in H1 2013.



The target areas  are a series  of east-west to  north-west striking  magnetic 
anomalies coincident with magnetite  rich BIF and  topographical highs with  a 
cumulative strike length of approximately 10km. Following MRE4 the Company has
focused drilling at Nkout East and  Nkout Centre to investigate shallow,  high 
grade iron mineralisation contained in  the oxide and transitional  saprolitic 
zones overlying the primary magnetite  BIF. Reconnaissance drilling of the  D8 
magnetic  anomaly  was   also  conducted.   A  summary   of  the   mineralised 
intersections are shown in Table 1 and in the two links below.



http://www.afferro-mining.com/i/maps/cameroon/OpsUpdate-Nkout.png

http://www.afferro-mining.com/i/maps/cameroon/OpsUpdate-D8.png



The primary magnetite BIF mineralisation remains open at depth.



Nkout East



19 diamond drill holes were completed, comprising 1,571m. The objective of the
drilling was to  further define the  potential DSO unit  detailed in the  news 
release of 23  April 2012. Results  of this drilling  are highly  encouraging, 
with metallurgical testing  indicating that high-grade  saprolite above a  50% 
iron mineralised cut-off should  be amenable to be  processed in a DSO  plant. 
Examples include NKEGS008 (85.5m @ 55.3% Fe from surface) and NKEGS010 (101.8m
@ 54.1% Fe from surface).



D8



The target zone is the fourth area to be drilled within a 9km radius of  Nkout 
Centre. First  pass reconnaissance  drilling of  39 diamond  holes  comprising 
1,988m was completed over a 1km strike on 200m spaced drill traverses with 50m
centres. Drilling  was  targeted  on a  high  intensity,  coherent  north-west 
striking magnetic  anomaly  and designed  to  test for  high-grade  oxide  and 
transitional mineralisation. A number of drill holes were advanced deeper into
primary BIF mineralisation  to gauge  depth continuity.  Results indicate  the 
tenor is the  same as that  of the  Nkout mineralisation and  remains open  at 
depth.



Nkout Centre



19 drill holes were completed comprising  1,313m to further define and  extend 
the potential DSO. Drilling is on-going  and will further explore a  potential 
south-western extension of the DSO.



The potential DSO, saprolite and magnetite BIF mineralisation at Nkout is  the 
subject of metallurgical  testwork being  carried out by  SGS Laboratories  in 
Perth, Western Australia. The results of this test work are pending.



Table 1 - Nkout Mineralised Intersections





Hole ID   Area   Azm   Dip  Elev.  North   East    EOH  From   To    Int  Fe % P %  Al^2O[3] SiO[2]
                (deg) (deg)  (m)    (m)     (m)    (m)   (m)   (m)   (m)               %       %
NKEGS003 Nkout   180   -80   804              110.7  0.0  44.8  44.8  55.5 0.10   3.9     10.4
          East                    286,847 256,603       52.8  90.0  37.2  39.0 0.04   0.8     42.3
                                            including^#  6.0  33.4  27.4  60.8 0.12   2.5     3.6
NKEGS004 Nkout   180   -80   806              90.2   0.0  77.3  77.3  53.2 0.14   4.2     12.1
          East                    286,801 256,604
                                            including^#  6.0  38.3  32.3  59.2 0.13   2.7     5.0
                                                        46.3  62.3  16.0  58.5 0.21   2.5     5.5
NKEGS005 Nkout   180   -80   767              81.8   0.0   8.8   8.8  43.6 0.05   13.3    14.6
          East                    286,893 256,512
NKEGS006 Nkout   180   -80   800              74.8   0.0   9.6   9.6  53.7 0.05   7.8     8.4
          East                    286,756 256,603
                                            including^#  2.0   4.0   2.0  59.3 0.05   6.6     3.6
NKEGS007 Nkout   180   -80   789              73.8   0.0  10.3  10.3  38.8 0.04   12.6    7.9
          East                    286,700 256,603
NKEGS008 Nkout   180   -80   825              113.6  0.0  85.5  85.5  55.3 0.08   4.6     5.8
          East                    286,803 256,794       106.5 113.6  7.1  37.6 0.05   0.6     43.5
                                            including^# 14.7  76.5  61.8  58.8 0.08   2.3     2.4
NKEGS009 Nkout   180   -80   779              84.8   0.0   5.6   5.6  47.9 0.04   12.5    9.9
          East                    286,849 256,498
NKEGS010 Nkout   180   -80   823              101.8  0.0  101.8 101.8 54.1 0.05   3.6     7.6
          East                    286,845 256,800
                                            including^#  6.0  92.8  86.8  56.4 0.05   3.2     4.3
NKEHC061 Nkout   180   -80   785              88.9   0.0   9.2   9.2  46.6 0.05   10.3    15.1
          East                    286,663 256,602
NKEHC062 Nkout   180   -80   754              89.0   0.0  19.5  19.5  49.1 0.08   5.7     8.6
          East                    286,940 256,505
NKEHC063 Nkout   180   -80   779              61.0   0.0  13.5  13.5  41.6 0.03   6.0     29.5
          East                    286,755 256,509
NKEHC064 Nkout   180   -80   757              42.5   0.0   3.5   3.5  43.1 0.04   12.1    17.2
          East                    286,653 256,499
NKEHC065 Nkout   180   -80   768              63.4   0.0   6.4   6.4  49.6 0.13   8.9     11.9
          East                    286,704 256,500
NKEHC066 Nkout   180   -80   805              34.8   0.0   3.8   3.8  76.6 0.13   20.5    10.2
          East                    286,662 256,800
                                            including^#  5.0   7.0   2.0  55.8 0.05   9.5     4.3
                                                        11.5  13.8   2.3  55.7 0.26   5.1     5.4
NKEHC069 Nkout   180   -80   784              70.8   0.0   6.0   6.0  43.9 0.04   13.1    14.8
          East                    286,798 256,507       48.0  50.0   2.0  35.1 0.06   4.8     41.8
NKEHC070 Nkout   180   -80   826              84.3   0.0  84.3  84.3  51.8 0.09   4.8     12.7
          East                    286,756 256,801
                                            including^# 10.8  63.8  53.0  57.3 0.11   3.9     4.2
NKEHC071 Nkout   180   -80   813              114.5  0.0  114.5 114.5 47.5 0.06   4.0     20.4
          East                    286,893 256,800
                                                         9.5  11.5   2.0  55.9 0.06   5.9     2.7
                                             including# 18.0  34.0  16.0  61.4 0.09   2.0     2.0
                                                        50.5  72.0  21.5  59.4 0.06   1.3     7.3
                                                        82.0  84.0   2.0  58.6 0.08   1.3     6.6
NKHC139  Nkout   180   -80   733              96.4   0.0  96.4  96.4  46.5 0.05   1.9     25.8
         Centre                   286,009 254,305
                                             including#  0.0  19.9  19.9  56.8 0.1    5.2     7.4
                                                        25.9  34.9   9.0  58.5 0.02   0.6     14.6
NKHC140  Nkout   180   -80   728              69.5   0.0  59.5  59.5  47.4 0.04   1.9     27.7
         Centre                   286,049 254,302
                                             including# 18.5  21.5   3.0  56.5 0.02   0.9     16.2
NKHC141  Nkout   180   -80   749  285,996 254397  84.5   0.0  12.5  12.5  55.3 0.07   6.8     7.0
         Centre                                         19.5  84.5  65.0  45.2 0.04   0.8     29.9
                                                         7.0  12.5   5.5  58.6 0.05   2.4     9.7
                                             including# 19.5  27.5   8.0  56.9 0.05   0.6     16.0
                                                        33.5  36.5   3.0  55.1 0.06   0.4     19.2
NKHC142  Nkout   180   -80   704              39.4   0.0  39.4  39.4  42.2 0.05   3.0     33.4
         Centre                   285,855 254,294
NKHC143  Nkout   180   -80   723              65.0   0.0  29.0  29.0  48.1 0.07   4.2     21.9
         Centre                   285,906 254,305       35.0  65.0  30.0  34.7 0.05   3.2     43.2
                                             including#  4.0   8.0   4.0  55.4 0.1    5.8     7.1
NKHC144  Nkout   180   -80   737              55.9   0.0  55.9  55.9  49.8 0.04   2.0     20.8
         Centre                   285,954 254,302
                                             including#  0.0  23.0  23.0  58.6 0.05   2.8     8.3
NKHC145  Nkout   180   -80   739              56.0   0.0  52.0  52.0  42.8 0.05   3.0     32.7
         Centre                   285,906 254,397
                                             including#  5.0   8.0   3.0  57.8 0.1    1.7     12.0
NKHC146  Nkout   180   -80   706              64.5   0.0  45.5  45.5  47.9 0.06   1.7     26.7
         Centre                   286,047 254,195       54.5  64.5  10.0  38.7 0.04   0.4     42.7
NKHC147  Nkout   180   -80   707              71.0   0.0  71.0  71.0  45.6 0.05   0.6     30.5
         Centre                   286,005 254,196
NKHC155  Nkout   180   -80   755              93.1   0.0  93.1  93.1  40.6 0.08   5.6     29.7
         Centre                   285,842 253,892
NKDE001    D8     0    -90   658  287,048 246,143 59.5   3.0   5.5   2.5  30.9 0.07   3.6     35.8
                                                         0.0  10.0  10.0  37.3 0.03   2.6     42.2
NKDE002    D8    180   -80   714  286,803 246,259 56.5  24.0  28.0   4.0  37.1 0.05   0.6     44.2
                                                        30.0  43.0  13.0  33.8 0.04   3.2     45.6
                                                        46.5  56.5  10.0  37.5 0.03   1.1     41.9
NKDE004    D8    180   -80   805  286,450 246,654 48.4   0.0   8.3   8.3  49.9 0.05   6.6     15.7
           D8                                           13.6  49.4  35.8  38.9 0.04   1.5     40.3
           D8                                           12.8  14.8   2.0  31.0 0.05   0.8     52.0
NKDE005    D8    180   -80   746  286,193 246,853 50.3  20.8  22.8   2.0  35.4 0.04   1.2     45.6
                                                        33.8  40.3   6.5  26.3 0.06   1.6     58.6
NKDE006    D8    180   -80   760  286,736 246,548 36.0   0.0   4.0   4.0  41.3 0.06   12.8    19.0
NKDE010    D8    180   -80   751  286,650 246,446 44.8   0.0  44.5  44.5  37.8 0.04   0.7     42.6
NKDE011    D8    180   -80   691  286,750 246,202 56.3   6.1  14.4   8.3  43.8 0.09   8.2     22.2
NKDE012    D8    180   -80   721  286,598 246,404 53.1   0.0  13.8  13.8  42.8 0.07   4.9     39.4
                                                        41.5  50.3   8.8  39.1 0.04   0.4     42.0
NKDE013    D8    180   -80   703  286,540 246,367 57.8   5.3   8.3   3.0  42.3 0.06   11.1    21.4
NKDE014    D8    180   -80   805  286,499 246,699 65.3   0.0  10.5  10.5  50.5 0.11   11.5    8.2
NKDE015    D8    180   -80   785  286,546 246,753 47.8   0.0   6.0   6.0  35.6 0.17   20.9    13.8
NKDE018    D8    180   -80   770  286,698 246,503 38.7   0.0  10.3  10.3  41.0 0.05   4.5     32.5
NKDE019    D8    180   -80   691  285,954 246,853 55.4   4.0   8.0   4.0  43.6 0.09   5.4     27.5
NKDE021    D8    180   -80   721  286,835 246,295 42.9   0.0   8.1   8.1  37.6 0.03   4.2     40.6
                                                        14.0  38.0  24.0  35.5 0.04   2.8     43.7
NKDE023    D8    180   -80   707  286,108 246,750 62.8   3.0  33.5  30.5  37.7 0.06   2.2     41.7
NKDE024    D8    180   -80   780  286,402 246,601 55.6   0.0   8.9   8.9  39.7 0.06   5.9     32.4
NKDE025    D8     0    -90   754  286,358 246,556 33.2   2.0   4.0   2.0  38.0 0.17   14.0    21.4
NKDE026    D8    180   -80   747  286,159 246,804 67.6   4.0  39.9  35.9  38.9 0.04   1.0     40.9
                                                        46.5  60.5  14.0  33.4 0.05   2.3     45.7
NKDE027    D8    180   -80   739  286,783 246,605 51.8   3.0   5.3   2.3  35.3 0.06   17.0    20.7
                                                         0.0  10.5  10.5  39.4 0.04   1.6     40.6
NKDE028    D8     0    -90   716  286,015 246,896 60.9  17.0  25.0   8.0  37.7 0.05   1.5     43.6
                                                        31.0  50.5  19.5  37.8 0.05   1.0     41.9
NKDE030    D8    180   -80   662  286,992 246,104 57.1   6.7   8.6   1.9  38.1 0.05   9.9     28.8
NKDE031    D8    180   -80   707  286,104 247,000 43.3   4.0  10.0   6.0  49.2 0.08   7.2     16.0
NKDE034    D8    180   -80   700  286,150 247,035 50.7   6.0   8.0   2.0  39.3 0.06   11.7    21.4
NKDE035    D8    180   -80   733  286,241 246,895 56.8   0.0   7.3   7.3  50.3 0.11   5.4     17.2
NKDE036    D8    180   -80   671  286,648 246,105 47.3   8.3  11.3   3.0  35.8 0.08   5.7     38.1
NKDE038    D8    180   -80   685  286,052 246,704 63.5   6.3   9.5   3.2  41.1 0.09   8.8     24.4



*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







Afferro Mining Inc.

Luis da Silva / Jeremy Cave

Tel: +44 (0) 20 7010 7681



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. 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.



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


DRLUAAORUUAAAUA -0- Nov/12/2012 07:01 GMT