Friday, 1 February 2013

UPDATE: Afferro Mining reveals encouraging early results from fourth Cameroon permit


--adds broker comment—
Afferro Mining (LON:AFF, CVE:AFF) has revealed some early encouraging exploration results from its Akonolinga permit in Cameroon.
Surface sampling found grades of up to 58.5% iron, while trenching work uncovered intersections grading 55.9% Fe (iron).
In all, four drill targets have been identified with a total of 50 magnetic anomalies discovered.
Chief executive Luis da Silva said: “The results from Akonolinga demonstrate the potential at the fourth of the company's iron exploration permits, as Afferro looks to create value across its portfolio of projects in Cameroon.
“Akonolinga demonstrates strong potential transport synergies with our flagship project, Nkout, as it lies alongside the proposed rail corridor, which Afferro intends to use for transferring iron ore from Nkout to the planned terminal at Kribi.
“Akonolinga provides further optionality and exploration upside.”
The permit area is 85 kilometres north-west of the company’s flagship Nkout project.
Broker Panmure Gordon hailed today’s “encouraging results” from the project.
Analyst Alison Turner said the results provide a timely reminder that Nkout represents only part of the Afferro story.
“Nevertheless, in the short term the identification of a strategic partner for Nkout or buyer for Afferro will continue to dominate the agenda,” she added.
Afferro confirmed earlier this month that Indian giant Jindal Steel and Power is one of a number of the junior miner’s potential suitors.
Another is AIM-listed IMIC (LON:IMIC), which increased its stake in Afferro yesterday to 4.99% after it bought another 1.1mln shares, with an option to acquire a further 1.86mln shares at 90p each.
Shares drifted 1% lower to 83.68p each.

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