TORONTO, ONTARIO--(Marketwire - July 19, 2012) - Ferrum Americas Mining Inc., (TSX VENTURE:FEM) ("Ferrum" or the "Company") is pleased to announce that a 4,000-m drilling program has started on the Company's Cerro Rojo iron ore project located in eastern Bolivia, approximately 55 km 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.
Ferrum's program is designed to further define the Cerro Rojo iron ore deposit along strike, which has been mapped for more than 4 km and along its dip slope which has been mapped for more than 1,000 m. 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.
First hole CR-01 has been completed and the core shipped for assay to ALS Minerals lab in Oruro, Bolivia for sample preparation and analysis. ALS is a multinational company which operates to ISO 9001 quality assurance standards.
Key objectives for the balance of this year include:
- Define a maiden NI 43-101 compliant resource estimate by the first quarter of 2013.
- Advance metallurgical test work.
- Complete preliminary logistics analysis of the rail and river barge potential for low cost shipping of iron ore products to market.
- Initiate baseline environmental studies in preparation for an Environmental Impact Assessment and future feasibility analysis.
Ferrum enjoys 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.
Bolivia has recently been hurt by a spate of conflicts between mining companies, local cooperative miners and communities primarily in the altiplano areas of western Bolivia. In several of these cases, this has resulted in the government forcing foreign companies to terminate their holdings and to turn the projects back to the government in an effort to appease protestors.
"This is a very regional issue which has also occurred in parts of Peru," Nick Tintor, President and CEO of Ferrum said. "In our case, Cerro Rojo and iron ore in particular, are not amenable to small scale mining activity so the issue of private local miners on our project does not exist. Unlike many jurisdictions around the world, the communities around Puerto Suarez such as Yacuses, have shown a remarkable level of support for our company and our project," he added.
Cerro Rojo Project
Cerro Rojo is a large Neoproterozoic banded iron formation deposit 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 km and has been mapped for more than 1,000 m along its dip slope. Surface sampling of outcrop suggests grades average in excess of 50% Fe according to reports prepared by Rio Tinto in 1999 and verified by Ferrum.
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 course 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 km 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 already used to transport iron ore down river to off load sites in Argentina.
Vale and MMX, both operating in the Corumba-Urucum iron ore fields 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 has rights to acquire a 98% interest in the Cerro Rojo iron ore project in Bolivia. Located 600 km east of Santa Cruz and approximately 55 km from Puerto Suarez and the Hidrovia river system near Corumba, Brazil, Cerro Rojo is a large banded iron formation striking for more than 4 km and grading in excess of 50% Fe, according to reports prepared by Rio Tinto in 1999 and verified by Ferrum.
Ferrum Americas is planning an aggressive exploration and development program for 2012 designed to advance Cerro Rojo and surrounding iron ore projects towards feasibility and production.
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.