Ferrum Americas Mining has received positive results from preliminary magnetic separation metallurgical test work at its Cerro Rojo iron ore project in eastern Bolivia.

Brazil-based Nomos Laboratory conducted the assay and basic magnetic separation tests for the samples. The samples, totalling 157kg, were collected from four surface locations along approximately 500m of strike across the scarp, formed by the Cerro Rojo Neoproterozoic banded iron formation.

Preliminary test work confirms that iron ore from Cerro Rojo will liberate well and can be upgraded to produce an iron grade product.

Later this year, the company intends to undertake a more comprehensive second phase study based on representative samples from across the entire deposit and from drill core.

Ferrum plans to complete sufficient drilling, leading to the completion of a NI 43-101 this year, and also intends to close the compliant resource estimate by the fourth quarter of 2012. The company also plans to complete preliminary logistics analysis of the rail and river barge, which will allow it to ship iron ore products to market.