Adelaide, Jan 15, 2007 (ABN Newswire) - FerrAus (ASX: FRS) announced today the new targets plus interpreted extensions of known mineralised areas of interest at the Robertson Range project, could take the Company's overall resource base there to between 40-50 million tonnes.

Two new iron ore targets identified by FerrAus Limited in the East Pilbara region of Western Australia could add up to 20 million tonnes to the Company's resource base at its flagship Robertson Range project.

"At this level, Robertson Range becomes robust enough to support a mine production rate of around 3-5 million tonnes per year, improving the overall commercial scope of this project," FerrAus's Managing Director, Mr David Turvey, said today.

Mr Turvey said the scope of the newly identified targets was such that FerrAus had scheduled an urgent 10,000 metre Reverse Circulation drilling program to commence in March, to prove up the zones.

The targets were identified by FerrAus after a ground gravity survey completed last month returned what the Company described as "results exceeding expectations".

The survey also found that the known South Zone deposit is much larger than has been identified to date by drilling, and remains open in a southwest direction.

One of the new targets is just to the southwest of the South Zone, while the second is to the northeast of the North Zone. All four areas of mineralisation are within close proximity.

Last November, FerrAus announced a JORC-compliant Indicated Resource of 18.4 million tonnes grading 58.8% iron at Robertson Range, sufficient the Company said then, to provide a platform for mine planning and development.

"The new targets show a strong positive correlation with known areas of >58% Fe with the southwest target more than 800 metres long and 300 metres wide," Mr Turvey said.

"The new target out from the North Zone is at least 600 metres in length and 400 metres wide and open ended.

"From the results to date of our exploration model successfully assigned to this area, we are confident these additional gravity targets have the potential to add 15-20 million tonnes to the existing resource base for a total project resource of 40-50 million tonnes overall."

The gravity survey(¹) had been ordered to better define known iron mineralisation at Robertson Range and to identify additional exploration targets under shallow sand cover.

Mr Turvey said that although some assays results were still awaited from the more recent Stage 3 RC drilling, the survey gave FerrAus sufficient belief that the North Zone's iron mineralisation was fully interpreted as defined by the Company's previous three drilling campaigns, with no extensions evident.

"However, the South Zone mineralisation is larger than previously identified by RC drilling and extends more than 250 metres in a southwest direction yet to be tested," Mr Turvey said.

"This anomaly is also much stronger than for the North Zone, suggesting a possible core of high grade iron mineralisation."

Both new zones are estimated to each potentially contain around 10 million tonnes of iron mineralisation.

Mr Turvey said the new results continued to reinforce the quality and calibre of the Robertson Range project.

"We have export quality iron ore which can be produced from Day 1," Mr Turvey said. Contaminant levels are medium to low, the near surface high grade pockets will allow for ready blending or product differentiation and mineralisation is contained in relatively flat sheets, ensuring lower cost strip ratios."

FerrAus is currently awaiting metallurgical testwork results from Robertson Range which will define the critical lump to fines ratio for the project's iron ore offering.

"We are confident of continuing to increase the size, grade and classification of this iron ore body," Mr Turvey said.

The mineralisation is of a hematite-martite-goethite type occurring within the Marra Mamba Formation within FerrAus' E52/1630 acreage in the Pilbara.

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