Afferro Mining uncovers high grades with direct shipping ore (DSO) potential at Nkout

West Africa-focused iron ore miner Afferro (LON:AFF, CVE:AFF) has uncovered significant high grade material at its Nkout iron ore project in Cameroon with direct shipping ore (DSO) potential.

The find means the firm could begin production from the project at an earlier stage requiring less initial capital expenditure.

The DSO material was found in one minable area in a line of adjacent holes and the headline results include 51 metres at 63.4 per cent Fe,  30 metres at 60.4 per cent Fe and 48 metres with 58.6 per cent  Fe.

They support the existence of a high grade cap overlying a BIF deposit.

Afferro said that the results will be included in the forthcoming mineral resource estimate (MRE) in November together with the revised banded iron formation (BIF) resource.

Chief executive of the company Luis da Silva said: "These results are very encouraging and continue to support the DSO potential of the Nkout project and the possibility of having an early phase of production."

Meanwhile, the firm said it continued to make "excellent" operational progress at Nkout. It delivered the MRE update three months ahead of schedule in June, showing 1.42 billion tonnes at 33.6 per cent Fe.

It is on track to deliver a further resource update in November.

So far, the company has drilled 113 holes totalling 18,500 metres and this rate of drilling is expected to increase, with two further drill rigs bringing the total number of rigs on site to seven.

Meanwhile, the scoping study for infrastructure and logistics, due in October, will estimate the capex required for Nkout firstly, as a stand-alone project and secondly, utilising the synergies resulting from infrastructure cooperation with other nearby iron ore developers, primarily Sundance Resources.

From these early results the firm will gain a deeper understanding of the economics of the project and the minimum resource required to justify an investment based on a standalone project.

da Silva added: "The increase in the number of rigs will enable us to progress our resource drilling programme, and ultimately the project, more quickly, creating value for our shareholders."