Afferro Mining is an established iron ore exploration and development company with multiple projects in Cameroon, listed on TSX and AIM. The Company is managed by a team with strong track records in the discovery and development of new commercial deposits. The Company holds four exploration permits in the South of Cameroon, all along the same proposed infrastructure.
The flagship project is Nkout. This currently has a NI 43-101 compliant mineral resource estimate of 2.0bt at 32.2% iron (944mt Inferred at 32.7% iron and 1,054mt at 31.6% iron), including 18.5mt of direct shipping ore (DSO) at 60.3% iron (Inferred). This resource covers 8.9km of the 20km total strike length. In addition to being strategically well-placed beside the proposed infrastructure route, the project also benefits from excellent metallurgy, with a +70% iron product possible at high grind sizes and high recovery rates, with low deleterious materials. Seven drill rigs are currently at the site, drilling to develop both the magnetite BIF and potential DSO resource. The Company plans to deliver a preliminary economic assessment in March and a pre-feasibility study later in 2012.
The other exploration permits include Ntem, Ngoa and Akonolinga. Airborne magnetics of Ntem recently identified a significant magnetic anomaly, greater in strength than Nkout. Reconnaissance drilling of this anomaly is planned for Q1 2012.
The balance sheet is strong, with the Company fully-funded for its exploration and development of these assets to 2013 and beyond. Recent cash in-flows arose from the sale of 38.5% of the Putu project in Liberia to Severstal. There was an initial payment of $65m and then a minimum deferred payment of $50m from July 2013, with the Company able to benefit from any upside in the subsequent sale (fully or in part) of Putu by Severstal.Company Website: www.afferro-mining.com/