Afferro Mining said that its reconnaissance drilling program on Nkout East in Cameroon had identified high grade iron ore that warrants further investigation.

The plan is to assess the potential of this higher grade ore in the surface oxidized cap to see whether it is of sufficient quality to be shipped to clients directly.

The work at Nkout East has defined two overlapping 1.6 kilometer units that together give a strike length of 2.4 kilometres. Each is between 100 and 120 metres in width, and the Nkout East anomaly in total is estimated to be in the order of 500 million tonnes.

An updated mineral resource statement for the project will be published later this month, to be followed in the fourth quarter with further revised estimate.

The maiden 43-101 resource estimate suggests Nkout project contains 1.04 billion tonnes of iron ore in the inferred category.

This is largely based on exploration of the Nkout Centre area, and management believes there may be headroom to increase the resource base to 4 billion tonnes by targeting the wider area, including Nkout East.

Mr Luis da Silva Affero chief executive said that "These results are highly encouraging and it is exciting to note that Nkout East exhibits similar geological and mineralization characteristics to the adjacent Nkout Centre anomaly. The project continues at pace having more than doubled drilling since the maiden resource statement in February with an additional four rigs expected within three months."

(Sourced from www.proactiveinvestors.co.uk)