Ferrum Americas Mining Inc announce the receipt of positive results from preliminary magnetic separation metallurgical test work on the Company Cerro Rojo iron ore project, located in eastern Bolivia, approximately 55 kilometres west of Puerto Suarez and the Hidrovia River system near Corumba, Brazil.
Samples totalling 157 kilograms were collected from four surface locations along approximately 500 metres of strike across the scarp formed by the Cerro Rojo Neoproterozoic banded iron formation. Samples were sent to Nomos Laboratory, an ISO 9001 certified assay and metallurgical testing company based in Duque de Caxias, Brazil, for assay and basic magnetic separation tests.
Highlights from this preliminary test work are as follows:
1. Average head grade of the samples was 54% Fe
2. The ore can be upgraded using simple magnetic separation techniques with low yield loss.
3. At a grind size of 150 Microns a product of 63.33% Fe was obtained with a 78% mass yield
4. At a grind size of 106 Microns a product of 63.79% Fe was obtained with a 72.71% mass yield
5. At a grind size of 75 Microns a product of 67.6% was produced with a 71% mass yield.
The preliminary test work confirms expectations that iron ore from Cerro Rojo will liberate well and can be upgraded to produce a product of attractive iron grade. Based on the sample results, an excellent quality iron concentrate was produced at a relatively coarse grind size and with a high mass yield.
While preliminary, these results are significant in determining how iron ore can be upgraded and encouraging in terms of the efficiency with which this can be achieved. Based on these positive results, Ferrum intends to conduct a second phase and more comprehensive study based on representative samples from across the entire deposit and from drill core later this year.
1. 58% Iron Ore Benchmark
One of the most important developments last year in the iron ore physical market has been the growing acceptance of 58% benchmark iron ore price indices. The new Metal Bulletin 58% Iron Ore price Index, one of several in the marketplace, reflects the steel industry's growing acceptance of and demand for 58% iron ore product.
This development is of particular significance to Ferrum Americas as the Cerro Rojo project, which grades in excess of 50% iron, is very close to this new benchmark grade and creates a potential for producing a Direct Selling Ore product.
"We are extremely pleased with the results from our first metallurgical test work at Cerro Rojo and combined with the growing demand for 58% iron product, provides Cerro Rojo with a broader range of potential iron ore products which can be developed for sale" said Nick Tintor, President and CEO of Ferrum.
2. 2012 Program Objectives
Ferrum operating objectives for this year include the following:
1. Complete sufficient drilling leading to the completion of a NI 43-101 compliant resource estimate by the fourth quarter of 2012.
2. Complete additional metallurgical test work.
3. Complete preliminary logistics analysis of the rail and river barge potential for low cost shipping of ore iron ore products to market.
