Afferro Mining Inc. - Progress Update and Q3 Results

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TSX-V: AFF
AIM: AFF

LONDON, UK, Nov. 21, 2011 /CNW/ - Afferro Mining Inc. ("Afferro" or the "Company"), the TSX-V / AIM listed exploration and development company, with iron ore projects in Cameroon and Liberia, announces a progress update, together with its financial results for the third quarter ended 30 September 2011.

Operational highlights

Nkout:

• The Company announced on November 14, 2011 that it had increased its overall mineral resource at Nkout by 41%. This is the third resource update this year delivering an indicated mineral resource estimate of 944Mt grading 32.7% iron and an inferred mineral resource estimate of 1.05Bt grading 31.6% iron
• The tonnage of Direct Shipping Ore ("DSO") increased by 70% to 18.5Mt grading 60.3% iron
• Six drill rigs are now operating with a seventh rig due to arrive shortly
• 25,147m have been drilled to date, including 15,662m in the nine months to end September 2011 and 19,654m to November 9, 2011
• Key positions in country have been filled in health and safety, logistics and finance teams 

Putu:

• The Company announced on July 11, 2011 that it had upgraded the resource by 36% with an indicated mineral resource estimate of 1.89Bt grading 33.9% iron and an inferred mineral resource estimate of 1.36Bt grading 34.7% iron
• Resource delineation drilling for the prefeasibility study ("PFS") is completed with approximately 75,000m drilled as at the end of September 2011
• Engineering, port and railway contractors have been selected for the PFS
• The majority of studies required for the PFS are underway
• The PFS is expected to be delivered in the first half of 2012

Financial and Corporate highlights

• Cash and cash equivalents of $21.8m
• Total assets increased by 57% to $63.2m since 30 June 2011
• Net proceeds of $24.2m raised from a private placement in July
• $5.7m spent on Nkout and $1.8m on Putu during the quarter
• Loss for the three months at $0.4m is $1.4m below last year
• The key corporate highlight was the successful fundraising in July which raised gross proceeds of approximately $25m (£15.5m)
• Discussion with strategic partners remains on-going as regards to the future development of the Group's assets

Outlook and key deliverables

Afferro is focused on developing its highly promising iron ore assets in Cameroon (Nkout) and Liberia (Putu). The key objectives for the remainder of 2011 and first half of 2012 are:

Cameroon:

• Complete the logistics and infrastructure scoping study at Nkout by end of December 2011;
• Further increase the estimated mineral resource at Nkout;
• Identify additional amounts of potential DSO material at Nkout;
• Complete the preliminary economic assessment on Nkout by the end of Q1 2012; and
• Further explore Ntem and other properties.

Liberia:

• Complete the PFS for the magnetite phase of the Putu project; and
• Complete the drilling programme on potential DSO at Putu.

Luis da Silva, Chief Executive of Afferro, commented:

"There has been significant progress at our lead project Nkout where we have grown the resource to 2Bt over the past 10 months. This has been achieved under budget and ahead of schedule. The Company has also increased its attributable, contained iron by 150% to 1.1Bt over the previous 12 months.

The focus for the Company is to bring these assets to feasibility stage and subsequently to develop them as soon as possible. The Board continues to review all strategic opportunities available in order to generate value for our shareholders."

A copy of the Financial Statements and Management's Discussion and Analysis can be obtained via www.sedar.com and on the Company's website www.afferro-mining.com.

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 iron ore project and surrounding iron ore targets in Cameroon. Afferro also has a 38.5% interest in the Putu iron ore project in Liberia, which is managed by joint venture partner Severstal Resources (the mining division of London and Moscow listed OAO Severstal). Severstal Resources are making good progress on the PFS having completed the resource drilling, appointed lead contractors and are progressing all necessary feasibility studies. In September 2010, the Putu project was granted a 25 year renewable Mineral Development Agreement by the Government of Liberia.

Qualified Person
Howard Baker has some ten years experience in the exploration, definition and mining of iron ore Mineral Resources. Howard 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 mineralization 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 NI43-101 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.

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.