TORONTO, ONTARIO--(Marketwire - Oct. 10, 2012) - Ferrum Americas Mining Inc., (TSX VENTURE:FEM) ("Ferrum" or the "Company") is pleased to announce that drilling on the Company's Cerro Rojo iron ore project has returned wide intersections of banded iron formation grading approximately 50% Fe in four additional holes. This program is part of the inaugural drilling underway at Cerro Rojo, 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 Vale's Corumba mine and the large El Mutun deposit in Bolivia.
Hole CR12-05 was successful in extending known mineralization along strike by 200 metres from previous hole CR12-04. The remaining three holes were completed as in-fill holes on a 200-metre spacing along strike. The eight holes completed to date have outlined iron ore mineralization along 1,600 metres of the more than 4 kilometres strike length of the mapped Cerro Rojo mineralized zone.
Hole CR12-05 intersected 88.48 metres grading 49.4% Fe, including a higher grade section of 68.28 metres grading 50.5% Fe. Complete results from this first phase drill program are listed in the table below.
|Cerro Rojo Drill Results
||Interval (m) (1)
||Intervals represent the down hole core intersection and, until more data is available on the geometry of the mineralized zone, are not considered true widths.
Mineralization at Cerro Rojo occurs as a massive hematite-magnetite iron formation overlying a Proterozoic basement sedimentary sequence.
Ferrum continues to focus on outlining iron ore resources grading in excess of 50% Fe and which will be amenable to open pit mining.
A detailed drill hole location map, including a compilation of surface geology and iron ore sample data from surface outcrops is available for review on the Company's website at: www.ferrumamericas.com.
Quality Control-Quality Assurance
Assaying is being carried out at ALS Minerals lab in Oruro, Bolivia for sample preparation and analysis. 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. No. 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. No. 200) screen. These pulps are sent to ALS Chemex Lima and grades are calculated from total Fe% sample assays 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.
Ferrum continues to enjoy unprecedented community support in the Puerto Suarez region of Bolivia. Considerable support was received from the communities near Cerro Rojo, in particular Yacuses, which took a proactive approach in supporting Ferrum's permit applications. This included letters of support and requests to meet with government officials to support our project.
The regional centre of Puerto Suarez has also generously provided the use of the town's road graders and other heavy equipment for site preparation.
"Our community relations in Bolivia are a priority for us at Ferrum and our policy is to ensure that as many economic benefits as possible flow from the Cerro Rojo project to the local region," Nick Tintor, President and CEO of Ferrum said. "This means hiring locally and buying supplies locally whenever we can," he added.
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 generated excellent results suggesting iron ore from Cerro Rojo will liberate well and can be upgraded to produce a product of attractive iron grade. The test work shows that an excellent 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).
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.
||"Strengthening Bolivia's Competitiveness-Export Diversification and Inclusive Growth" A World Bank Country Study, 2009, The World Bank
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.
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.
Mr. Alain Vachon, P.Geo., the Company's Qualified Person as defined by National Instrument 43-101, has 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.