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

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TSX-V: AFF
AIM: AFF

LONDON, UK, Nov. 12, 2012 /CNW/ - 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:
• NKEGS003  44.8m @ 55.5% Fe from surface
• NKEGS008  85.5m @ 55.3% Fe from surface
• NKEGS010  101.8m @ 54.1% Fe from surface
• NKEGS004  77.3m @ 53.2% Fe from surface
• 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:
• NKDE026  35.9m @ 38.9% Fe from 4.0m
• NKDE004  35.8m @ 38.9% Fe from 13.6m
• NKDE010  44.5m @ 37.8% Fe from surface
• 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:
• NKHC139  96.4m @ 47.4% Fe from surface
• NKHC147  71.0m @ 46.5% Fe from surface
• NKHC140  59.5m @ 46.5% Fe from surface
• NKHC144  55.9m @ 45.6% Fe from surface
• 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

*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.