Various production scenarios have been identified and Afferro is looking to fast track DSO operations to secure early cash flow. A pre-feasibility study will be advanced to 2013, subject to further metallurgic studies.

Afferro chief executive officer Luis da Silva said, "We are very pleased to report that Nkout is an economically viable project. The study is the culmination of months of technical, economic and socio-political work. The PEA considers various material handling and production scenarios from 15mtpa to 35mtpa."

Production expected to commence in the second half of 2017, the mine has a life period of 21 to 48 years. Based on an average production rate of 15 to 35mtpa, the project currently has a net value of $1bn to $4.6bn, post-tax.

Afferro is currently working with Government of Cameroon and Sundance Resources towards developing the south Cameroon iron infrastructure that further enhance Nkout’s viability.

It is hopeful of the Government extending a favorable fiscal regime, the same which has been included in the PEA.