Ferrum Americas Mining announces maiden 43-101 Mineral Resource at
Cerro Rojo iron ore project
TORONTO, Jan. 15, 2013 /CNW/ - Ferrum Americas Mining
Inc., TSXV-FEM ("Ferrum" or the "Company") is pleased to announce
the results of the maiden independent National Instrument (NI)
43-101 Mineral Resource estimate for the Company's Cerro Rojo iron
ore project in eastern Bolivia.
The In-Pit Mineral Resource Estimate, prepared
by P&E Mining Consultants Inc., ("P&E") includes Indicated
resources of 111.0 million tonnes at 48.1% Fe and Inferred
resources of 175.9 million tonnes at 48.8% Fe utilizing a 15% iron
cut-off grade.
At a cut-off grade of 50% Fe, In-Pit Indicated
resources are 31.2 million tonnes at 51.5% Fe and Inferred
resources are 63.0 million tonnes at 52.0% Fe.
This is the first resource estimate for the
Cerro Rojo iron ore deposit, which is located in eastern
Bolivia approximately 55
kilometres west of Puerto Suarez and
the Hidrovia River system near Corumba, Brazil. The Corumba Iron Ore District hosts a
number of world class iron ore deposits including the large El
Mutun deposit and Vale's Corumba mining operations.
Commenting on the new resource estimate,
Nick Tintor President and CEO of
Ferrum said, "We are very encouraged by our maiden resource
estimate which has defined significant open pittable resources at a
relatively high grade of up to 52% Fe. Combined with the proximity
of the project to barge logistics on the Hidrovia river system, we
believe Cerro Rojo has the potential to support a viable iron ore
mining operation."
Resource Estimate Details
The mineral resource estimate is confined within
a 2,800-metre strike length, an average true thickness of 68 metres
and average down dip length of 450 metres. This mineralized zone
remains open to the west and to the east along strike and at depth.
The resource model was based on 21 diamond core drill holes
completed on 14 cross-sections totalling 2,586 metres of
drilling.
In-Pit Mineral Resource Estimate at 15% Fe
Cut-Off (1)(2)(3)(4)
Classification |
Tonnes (M) |
Fe % |
Indicated |
111.0 |
48.1 |
Inferred |
175.9 |
48.8 |
In-Pit Mineral Resource Estimate at 50% Fe
Cut-Off (1)(2)(3)(4)
Classification |
Tonnes (M) |
Fe % |
Indicated |
32.1 |
51.5 |
Inferred |
63.0 |
52.0
|
- Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources
may be materially affected by environmental, permitting, legal,
title, taxation, sociopolitical, marketing, or other relevant
issues.
- The quantity and grade of reported Inferred resources in
this estimation are uncertain in nature and there has been
insufficient exploration to define these Inferred resources as an
Indicated or Measured mineral resource and it is uncertain if
further exploration will result in upgrading them to the Indicated
or Measured mineral resource category.
- The mineral resources in this press release were estimated
using the inverse cubed grade interpolation method and the CIM
Standards on Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standing Committee on Reserve
Definitions adopted by CIM Council.
- P&E utilized a mining cost of $2.00/rock tonne and a charge of $15.00/ore tonne for the total processing,
G&A, and freight costs. The process recovery, estimated to be
85%, an Iron ore price of $1.50/dmtu
and a 45ยบ overall pit-slope, were used to complete the Whittle pit
optimization and estimate the portion of in-situ Mineral Resource
within the pit shell.
Contaminants are generally low. Ferrum believes
that with further beneficiation test work, contaminant levels may
be reduced further.
Exploration Potential
The Company believes there is considerable
exploration potential to increase resources at Cerro Rojo,
especially towards the west where banded iron formation in outcrop
has been mapped west of the last drill hole CR12-17 which
intersected 59.3 metres grading 52.4% Fe. This adds another 1,200
metres of prospective strike which will be followed up later this
year.
As a result of the very consistent nature of the
iron mineralization at Cerro Rojo which correlates very well over
long distances from section to section, the likelihood of finding
additional resources is considered good.
Preliminary field mapping has also identified
another banded iron formation unit striking parallel to and located
500 metres north of Cerro Rojo. This iron formation, which is
characterized by a subtle discontinuous magnetic response, has
never been drilled tested. Prospecting and mapping will be
conducted to better understand the dimensions and iron grades of
this zone in outcrop. Mapping and compilation work completed by
previous companies, suggests a potential strike length in excess of
3,000 metres.
Beneficiation Test Work Program
Ferrum has engaged Mintrex Pty. Ltd., an
Australian-based metallurgical and process design engineering
consultancy with expertise in iron ore beneficiation. The first
sample totalling 9 kilograms of drill core has been shipped to
Mintrex as part of an initial beneficiation test program. Results
from this program are expected in the first quarter of 2013.
As a result of the high grade nature of iron
resources at Cerro Rojo of up to 52% Fe, the beneficiation work
will focus on determining a simple upgrading process to produce a
direct shipping ore, ("DSO"). The Cerro Rojo-Mutun-Corumba region
of Bolivia and Brazil is characterized by hosting zones of
secondary enriched iron ore or DSO.
Quality Control-Quality Assurance
Sample preparation is being carried out at ALS
Minerals lab in Oruro, Bolivia.
ALS is a multinational company which operates to ISO 9001 quality
assurance standards. All samples are HQ core and vary in length
from 1.5 to 4 metres. When received at ALS laboratory in
Bolivia, the sample is logged in
the tracking system, weighed, dried and finely crushed to better
than 70% passing a 2 millimetres (Tyler 9 mesh, US Std. #10)
screen. A split of up to 250 grams is taken and pulverized to
better than 85% passing a 75 micron (Tyler 200 mesh, US Std. # 200)
screen. These pulps are sent to ALS Chemex Lima and grades are
reported as total Fe%. Assays are completed using the "High
Grade/Ores Method" and XRF analysis. The QA/QC program included the
insertion of systematic standards, blanks and duplicate samples
within every sample batch submitted to ALS. In addition, ALS
inserts its own duplicate samples. The results from these control
samples indicate an acceptable consistency of analysis.
P&E conducted a site visit in early
November 2012 where sampling
protocols were audited and ten independent verification core
samples were collected and brought back to Canada for iron and bulk density analysis at
Agat Laboratories of Mississauga,
Ontario.
Agat Laboratories are accredited to
international certification standards ISO 9001 and ISO/IEC
17025.
Logistics
Cerro Rojo is located approximately 55
kilometres from Puerto Suarez which
is located on the Hidrovia river system, the Mississippi of Latin
America according to The World Bank(1). Large
barge convoys are currently used to transport iron ore down river
to off load sites in Argentina.
Vale and MMX, both operating in the
Corumba-Urucum Iron Ore District in Brazil across from Puerto Suarez, are currently shipping more than
8 million tonnes of iron ore annually utilizing barge tug convoys
on the Hidrovia.
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(1) "Strengthening Bolivia's
Competitiveness-Export Diversification and Inclusive Growth" A
World Bank Country Study, 2009, The World Bank |
Cerro Rojo Project
Cerro Rojo is a large Neoproterozoic banded iron
formation which is part of the regional iron ore trend extending
into Bolivia from the world class
Corumba-Urucum iron ore fields located 75 kilometres to the east in
Brazil. Cerro Rojo strikes for
more than 4 kilometres and has been mapped for more than 1,000
metres along its dip slope.
Preliminary metallurgical test work completed by
Ferrum on surface samples, generated excellent results suggesting
iron ore from Cerro Rojo will liberate well and can be upgraded to
produce a product suitable for the steel markets. The test work
shows that a good quality iron concentrate can be produced at a
relatively coarse grind size and with a high mass yield. (See Press
Release date January 19, 2012 for
complete details of the metallurgical test work)
About Ferrum Americas Mining
Ferrum Americas is focused on developing low
capital expenditure iron ore projects in the Americas which are
characterized by access to logistics and transportation to markets
and relatively simple beneficiation processing requirements.
The Company is also currently evaluating
additional iron ore projects in neighbouring jurisdictions which
meet the objectives listed above, including proximity to logistics
and markets and requiring relatively small capital expenditure
requirements to be brought to production.
Ferrum Americas has rights to acquire a 98%
interest in the Cerro Rojo iron ore project in Bolivia. Located 600 kilometres east of
Santa Cruz and approximately 55
kilometres from Puerto Suarez and
the Hidrovia river system near Corumba, Brazil, Cerro Rojo is a large banded iron
formation striking for more than 4 kilometres, according to reports
prepared by Rio Tinto in 1999 and verified by Ferrum.
Qualified Persons
Mr. Eugene
Puritch, P. Eng and Paul
Pitman, P. Geo., both Qualified Persons as defined by
National Instrument 43-101, have reviewed and approved the contents
of this press release.
Mr. Alain Vachon,
P.Geo., the Company's Qualified Person as defined by National
Instrument 43-101, has also reviewed and approved the contents of
this press release.
Forward Looking Statements
This news release may contain forward-looking
statements that are based on Ferrum Americas Mining Inc.'s
expectations, estimates and projections regarding its business and
the economic environment in which it operates. These statements are
not guarantees of future performance and involve risks and
uncertainties that are difficult to control or predict. Therefore,
actual outcomes and results may differ materially from those
expressed in these forward-looking statements and readers should
not place undue reliance on such statements. Statements speak only
as of the date on which they are made, and the Company undertakes
no obligation to update them publicly to reflect new information or
the occurrence of future events or circumstances, unless otherwise
required to do so by law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Ferrum Americas Mining Inc.