Afferro Mining Inc Afferro has provided an update on the exploration drilling program underway at Nkout.

Most encouraging are the higher grade intercepts at Nkout East, which indicate the potential for a direct shipping ore (DSO) zone, similar to that delineated at Nkout Centre.

While DSO material is currently a small component of the overall resource tonnage, it has the potential to be an important contributor to early cash flow generation.

AFF plans on releasing an updated overall resource in the 1H13. * AFF has reported further results from the drilling program currently underway at Nkout.

The latest assays come from 77 diamond holes drilled during Apr-Aug 2012 (totalling 4,872m), with assays from another 108 holes (totalling 6,434m) still outstanding.

* The results include several high-grade intercepts at Nkout East, maintaining the tenor of mineralisation announced from drilling earlier this year.

Recent notable intersections include 85.5m at 55.3% Fe and 101.8m at 54.1% Fe, both from surface.

Nkout East does not yet have a defined DSO resource, while the adjacent Nkout Centre has DSO potential from 36.4mt of resource grading an average 56.5% Fe.

Metallurgical test work has indicated that +50% Fe ore is amenable to relatively straight-forward upgrading through a DSO plant, with a mass yield of over 75%.

* The additional drilling should contribute to an updated resource in the 1H13, which is then to be used as the basis for a prefeasibility study.

The overall Nkout resource currently stands at 2.5bnt at 31.5% Fe (47% in the Indicated category).

* We retain our Buy recommendation.

Our target price of 107p, based on an equity-diluted NPV valuation, is unchanged.
To access the full note please click here Analysts: Europe: Hunter Hillcoat +44 (0)20 7597 5182 South Africa: Albert Minassian +27 21 416 1454 Australia: Tim Gerrard +61 2 9293 2168
To receive further information or change your Research Preferences please email: South Africa or United Kingdom and Australia IMPORTANT NOTICE: This communication forms part of an electronic communication sent to the intended recipient (or such persons authorised representative) for their sole use and is subject to important legal and regulatory restrictions, qualifications and disclaimers that may be accessed and read in the attached research publication.

If you cannot access the disclaimer, please obtain a copy thereof from us by sending an e-mail to in the case of SA or in the case of the UK or Australia: The disclaimer is deemed to form part of this communication.

In the event of a conflict between the disclaimer and this notice, the disclaimer shall take precedence.

This communication is confidential for the information of the addressee only (and may not be reproduced in whole or in part, copies circulated, or disclosed to another party, unless permitted pursuant to and in accordance with the disclaimer.

If you are not the intended recipient of this e-mail, then: (a) please notify the sender of this e-mail immediately by return e-mail, facsimile or telephone and delete this message from your system; (b) you may not print, store, forward or copy this message or any part thereof or disclose or cause information in this message to be disclosed to any other person.

Nothing in this message constitutes an offer, warranty or representation from us.

None of our employees or representatives are permitted to send unsolicited messages ("spam") and our company cannot be held liable therefore.

If you regard this message as spam, please inform us immediately by sending an e-mail to in the case of SA or in the case of the UK or Australia: Unless otherwise agreed: (a) We are only deemed to have received an e-mail once we have confirmed receipt thereof to you; (b) We are deemed to have sent an e-mail once reflected as “sent” on our e-mail server.

If this message contains offensive, derogatory or defamatory statements or materials, it means the message has been sent outside the sender’s scope of employment with us and only the sender can be held liable in his/her personal capacity.

Our corporate information and names of our office bearers can be accessed by sending an e-mail to in the case of SA or in the case of the UK or Australia: The disclaimer applies to our original message, any attachments and all subsequent messages or attachments we may send. ________________________________
-------------------------------------------------------------------------------- CONFIDENTIALITY NOTICE AND LEGAL LIABILITY WAIVER: The content of this email and any attachments are CONFIDENTIAL and may contain privileged information.

If you are not the addressee it may be UNLAWFUL for you to read, copy, distribute, disclose or otherwise use the information contained herein.

The content of the message and or attachments may not reflect the view and opinions of the originating company or any party it is representing.

If you are NOT the intended recipient then please email back to ------------------------------------------------------------------------------------