Afferro Mining Inc. is an established iron ore exploration and development company listed on AIM and TSX-V (AFF).The Company is managed by a team with strong track records in the discovery and development of new commercial deposits. It is focussed on an area of central, west Africa previously underexplored for iron ore, but now rapidly emerging, with a number of companies all likely to benefit from cooperation on infrastructure. All Afferro’s projects (Nkout, Ntem, Akonolingaand Ngoa)are in the south of Cameroonbeside the same proposed infrastructure route. 

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 only 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, with the focus of drilling now on further developing the direct shipping ore (DSO) potential, now that there is sufficient magnetite BIF to underpin the Project. The Company plans to deliver a preliminary economic assessment in March, with an updated mineral resource estimate soon after and a pre-feasibility study later in Q1 2013.

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 development of these assets to 2013 and beyond, once the divestment of SLIO to Severstal Resources completes.

NKOUT PROJECT

Overview

• Ownership: 100%
• Licence size: 242.5 km2
• Current resource: 2.0Bt at 32.2% iron
• 944 Mt at 32.7% iron at Indicated status
• Includes 18.5 Mt at 60.3% iron, with DSO potential
• Resource from 8.9km of 20km total strike of major magnetic geophysical anomaly
• 35,000m drilling to date
• Metallurgical work indicates high-grade magnetite concentrate achievable at coarse grind sizes, with high recoveries and low deleterious materials
• Sinter fines potential for higher grade saprolite being investigated
• Located in the south of Cameroon at the heart of a rapidly emerging iron ore district, with economic benefits possible from cooperation on the infrastructure solution for the area
• 330km from proposed deep water port, currently under construction near Kribi, and 30km from proposed rail corridor to the port

Current programme and targets

• Q1 2012: Deliver Preliminary Economic Assessment (PEA), assessing economics of the project
• Q2 2012: further update Mineral Resource Estimate (MRE) focussing on delineating further DSO potential, while adding to BIF resource
• 2012: Continue to build on DSO potential, with 7 rigs operational in the Country
• Further drilling for DSO over the 8.9km of strike on which resource is based and further prospective targets over the rest of the 20km strike
• 2012: Further bench-scale and pilot-scale work to be undertaken as a part of Pre-Feasibility Study (PFS)
• Q1 2013: Fast-track PFS for delivery early in 2013
• H2 2014: Target Definitive Feasibility Study (DFS), 18 months after delivery of PFS

8.9km strike drill tested to date at Nkout: 

Infrastructure

• Nkout is 330km from the deep-water port (Capesize or Chinamax for iron ore terminal) near Kribi, currently under construction by the Cameroon Government
• Strategically well-situated in an emerging iron ore district, including: Mbalam (Sundance), Belinga (BHP Billiton), Avima (Core)
• Government of Cameroon focused on opportunity to ensure infrastructure is scaled up front for likely projects
• Nkout with the advantage of being closest to port of all advance projects and 100% within Cameroon. Situated only 30km from the proposed rail corridor
• Grid power likely to be available for the project, as stated by the Government. Very high hydroelectric potential, with the Government aiming to triple grid capacity to 3,000MW by 2020 
• PEA, scheduled for March 2012, to give greater detail on economics and infrastructure of project

Nkout at the heart of rapidly emerging iron ore district: 

Metallurgy

• Processing of magnetite appears simple and low-cost. Magnetite comprises the majority of the current resource at Nkout
• Magnetite is liberated at relative coarse grind size. Concentrate of over 65% Fe content achieved at p80 of 150 microns
• High iron recovery of 80-90% achieved across a range of particle sizes from 150 to 45 microns
• Combination of moderate work index (12-13 kWhr/t) with coarse grind is expected to result in low comminution energy requirement
• Magnetite concentrate contains low levels of deleterious elements, particularly phosphorous and alumina
• Coarse magnetite concentrate should be readily filtered, yielding a relatively dry product for shipping, thereby saving on transportation costs
• Low-cost processing, potential DSO (high-grade saprolite) ore totalling 18.5mt at 60.3% iron, with further potential to be defined
• Potential for saprolite to deliver sinter fines product has been identified
• Further bench-scale and pilot-scale test work to be undertaken as part of Pre-Feasibility Study during 2012

Metallurgical Work Completed on Samples of Nkout BIF:

Phosphorous and sulphur levels are very low. P205 approx. 0.01% for all grind sizes and sulphur content is negligible.

Simple plant proposed for magnetite processing:

Geology

• Nkout deposit located in the northern limits of the Congo Craton, on Archaean rocks, within the Ntem complex

• Ntem complex rock types comprise schist, amphibolite, quartzite, granites, gneiss, greenstone and itabirite-like rocks

• Nkout is a magnetite banded iron formation (BIF), with a high-grade oxidised cap. This is underlain by biotite gneiss

• The BIF is made up of distinguishable layers of granular quartz alternating with magnetite, haematite and limonite

Magnetic intensity map of the Djoum exploration permit: 

Resource Estimate

Table 1: Nkout Centre, Mineral Resource Estimate:

Notes:

(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability

(2) The effective date of the Mineral Resource Statement is 11 November 2011

(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 USD1.40/dmtu; slope angles of 35º and 44º in the oxide and fresh material; a mining recovery of 97.5%; a mining dilution of 2.5%; a base case mining cost of USD1.40/t and an incremental mine operating costs of USD0.05/t/10 m below the 80 m reference RL and USD0.05/t/10 m above the 80 m reference RL; process operating costs of USD4.39/t crushed DSO, USD2.3/t crushed oxide and USD4.49/t crushed BIF ore; and G&A costs of USD 2.31/t crushed ore.

NTEM PROJECT

Overview

• Ownership: 100%
• Licence area: 491.0km2. Renewable exploration licence for iron ore (and other minerals, including gold)
• Location: South-west Cameroon, located only 80km from the Government-led, deep-water port complex, which is currently under construction, and 10km from the proposed rail corridor
• Geology: Archaean age rocks with banded iron formations (BIFs) and greenstone belts
• Strongly modelled magnetic signature has defined a new target, with magnetic amplitude of 26,200nT, higher than Nkout at 22,700nT

Current Programme and Targets 

• Systematic exploration programme on-going including taking grab samples and ground magnetics
• Currently building access roads to the site
• Reconnaissance drilling programme on track to commence in Q2 2012, with results of the programme expected in H2 2012

Multiple Targets Identified by Airborne Magnetics:

Ntem Located only 80km from the Government-led Port near Kribi

AKONOLINGA PROJECT

Overview

• Ownership: 100% (Akonolinga licence held through wholly-owned subsidiary, Caminex SARL)
• Licence area: 241.6km2
• Renewable exploration licence for iron ore (and other minerals, including gold)
• Location: South Cameroon, 85km North-west of the Nkout project
• Target: 4km total strike length from three separate BIF occurrences, each 1-2km in length. The prospect was discovered as a cluster of small dipoles coincident with areas of higher ground
• Geology: Archaean age rocks with itabirite/banded iron formations 
• Rock sampling (7 samples) has shown iron percentages up to 67% with an average of 57%. Six of these samples were enriched Itabirite and one was Itabirite/BIF

NGOA PROJECT

Overview

• Ownership: 70% (Essong exploration permit held through 70% interest in Ridgeway Energy SARL)
• Licence area: 491.6km2
• Renewable exploration licence for iron ore (and other minerals, including gold). 
• Location: South Cameroon, adjacent to the Company's Nkout project and 30km from the proposed railway corridor leading to the Government-led, deep-water, port complex
• Target: 2km long iron-rich hill rising 300m above the regional landscape and showing an intense magnetic dipole
• Geology: Archaean age rocks with itabirite/banded iron formation float
• Rock sampling (23 samples) has shown iron percentages up to 69% with an average of 62%. 20 of these samples were enriched itabirite and three were itabirite/BIF

David Netherway - Chairman and director (Independent)

Mr. Netherway received a B.E. in Mining Engineering from the University of Melbourne in 1975 and a Certified Diploma in Accounting and Finance from the Chartered Association of Certified Accountants in the United Kingdom in 1985. Mr. Netherway is a mining engineer with over 30 years of experience in the mining industry. He was until the recent takeover by Gryphon Mineral Ltd (GRY-ASX), the CEO of Shield Mining Limited, an Australian listed company exploring for gold and base metals in Mauritania. Prior to this, Mr. Netherway served as the CEO of Toronto listed Afcan Mining Corporation, a China focussed gold mining company which was successfully taken over by Eldorado Gold. He is also a former director of Orezone Resources Inc. Kazakhgold Ltd and Equigold NL. Mr Netherway is a mine developer and operator who was involved in the construction and development of the Iduapriem, Siguiri and Kiniero gold mines in West Africa and has mining experience which includes Australia, India, Nepal, Oman and Malaysia. Mr. Netherway has also held senior management positions in a number of mining companies, including Golden Shamrock Mines, Ashanti Goldfields and Semafo Inc. 

Mr Netherway is currently the Chairman of Afferro Mining Inc.(TSX:AFF & LSE:AFF), GMA Resources plc (LSE:GMA), Aureus Mining Inc (TSX:AUE & LSE:AUE) and Altus Strategies Ltd and a non-executive director of Gryphon Minerals Ltd (GRY-ASX) and Altus Resource Capital Ltd (ARCL-LSE).

Luis Guilherme Cabrita da Silva - President & CEO

Luis da Silva is CEO of TSX-V/AIM listed Afferro Mining Inc. (symbol: AFF). He gained his extensive international experience with multinationals Lafarge S.A. and Blue Circle Industries Plc. Since 2007, Luis has presided over the restructuring of the three commodities within the original Mano River company, more recently known as African Aura Mining Inc., that resulted in the listed diamond and gold companies.He is a Non-Executive Director of Aureus Mining Inc. (TSX / AIM: AUE) and Stellar Diamonds plc (AIM:STEL).Luis is a graduate Mining Engineer from Camborne School of Mines and read for his MBA at the Cranfield School of Management. 

Guy Pas - Independent Director

Guy Pas is a Geneva based financier who has been involved with numerous successful resource ventures, through his investment vehicles Eastbound Resources and AddVenture Capital Partners. Between 1973-1983 he was a Vice President of Chase Manhattan Bank in structured and commodity finance. In 1987 he co-founded The Addax & Oryx Group Ltd., an integrated African oil group. In 1989 he co-founded and was the chairman of Samax Resources Ltd, which was focused on gold in Tanzania and was acquired on the TSX by Anglogold Ashanti for $189m in 1998. In 1995 he founded Mano River Resources Inc (Now Afferro Mining Inc) a TSX-V and AIM listed gold, diamond and iron ore company in west Africa. In 2004 he co-founded GAIA Resources Fund Ltd, focused on early stage private and public resource companies as well as co-founding Afren plc, a West African oil & gas company listed on the FTSE 250. Guy has been involved in establishing a number of FSU focussed ventures, most recently Ovoca Gold Plc and Siberian Diamonds.

David B. Evans - Independent Director

David Barry Evans joined the Company on 1st October 2007, as Executive Chairman. David brings with him over 30 years of experience across the natural resources sector, with particular expertise in the development of precious and base metal projects for both large mining houses and emerging producers. David is currently a Director for AIM-listed Tianshan Goldfields Ltd., and was previously a Director of Kroondal Platinum Ltd. and Aquarius Platinum Ltd., where he played an integral part in their growth, financing and successful development. David is also a Director of Orlando Investments Plc. Within the last five years, David has held directorships or partnerships at Exterra Consulting cc, Tarapaca Resources Ltd. (Bermuda).

Boris Granovsky - Independent Director

Mr Granovsky is the Head of Strategy and Corporate Development at Severstal Resources ('Severstal') and is the representative for Severstal's strategic interest in Afferro. Mr Granovsky is responsible for defining the iron ore and coking coal strategy for Severstal Resources, origination and execution of M&A transactions, greenfield projects and partnerships. He is a member of the Severstal Resources' Executive Board, and a member of the Board of Directors for several portfolio companies and joint ventures.

Prior to Severstal, Mr Granovsky held various posts gaining management and financial consulting experience with A.T. Kearney and KPMG over a period of nine years.

Updated from company website 16/11/11