Atlas Iron Limited (ASX:AGO)
Perth, May 19, 2009 AEST (ABN Newswire) - Atlas Iron Limited (ASX:AGO) is pleased to announce a 527% increase in the DSO resource at its Wodgina DSO Project from 8.1Mt at 57.5% Fe (see announcement of 15 January 2009) to 42.7Mt at 56.3% Fe.
The Wodgina DSO Project (Atlas 100% Fe Rights) is located 100km south of Port Hedland in the Pilbara of Western Australia.
"This is a 5-fold increase in the DSO resource since January 2009, and a direct result of our aggressive drilling campaign at Wodgina in the past 6 months", commented David Flanagan, Atlas' Managing Director. "As yet we've only drilled half the targets in the area, which suggests Wodgina is likely to get even larger. We are now fast tracking feasibility studies to underpin our plans to commence mining here in Q1 2010 and take full advantage of the recently signed Wodgina mine infrastructure access agreement."
"Wodgina fits Atlas' project profile perfectly as it provides good potential for a low capex mine with low strip ratios and established infrastructure, very close to a world class port," Mr Flanagan added.
The inferred resource increase is the result of an extensive exploration campaign at Wodgina, consisting of 724 holes for 41,000m of drilling, testing surface iron enrichment within a 1.5 to 5km radius of Talison's crushing and screening plant. Atlas has completed infill drilling on the Anson orebody, and metallurgical test work is underway. This inferred resource total includes 17.5 million tonnes at 57.3% Fe at Anson, which is likely to be the first area to be mined. A new resource estimation, incorporating the closer-spaced infill drilling which will bring Anson to JORC Indicated category, is on track to be delivered in June 2009.
When reported using a 55% Fe cut-off grade, the inferred resource at Wodgina contains a higher grade component of 26.8 million tonnes at 57.6% Fe.
Wodgina Resource Summary - May 2009---------------------------------------------------------------------Resource Mt Fe CaFe SiO2 Al2O3 P S LOI Density Classification (%) (%) (%) (%) (%) (%) (%) (g/cm3)---------------------------------------------------------------------Inferred 42.73 56.3 61.9 7.0 2.3 0.07 0.05 9.1 3.0---------------------------------------------------------------------
Note: Resources quoted at >53% Fe cut-off grade.
CaFe is calcined Fe calculated by Atlas using the formula (Fe%/(100-LOI))*100
For the full Atlas Iron Announcement, please see the link below;
http://www.abnnewswire.net/media/en/docs/60674-ASX-AGO-447261.pdf
About Atlas Iron Limited
Atlas Iron Limited (ASX:AGO) is an independent Australian iron ore company, mining and exporting Direct Shipping Ore (DSO) from its operations in the Northern Pilbara region of Western Australia. Since listing on the ASX in late 2004, Atlas has grown rapidly and is now a member of the ASX100 index.
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