Atlas Iron Limited (ASX:AGO) Update on North Pilbarra DSO Projects
Perth, Oct 13, 2009 AEST (ABN Newswire) - Atlas Iron Limited [ASX:AGO] is pleased to report on progress towards the development of its Wodgina DSO mine, recent production outcomes and expansion initiatives at the Pardoo DSO mine, and updated DSO resources at the Mt Webber DSO project, all located in the North Pilbara region of Western Australia.
Highlights
- 1 millionth ore tonne mined at Pardoo in September
- Record production and shipments of 300,326t from Pardoo for the September quarter
- Pardoo crushing and screening infrastructure expanded, targeting 2.4Mtpa
- Atlas exercises its right with Talison Minerals to access the Wodgina Mine infrastructure
- Contracts awarded to commence construction of the Wodgina DSO mine
- Key Wodgina operational contract tenders underway
- Wodgina on track to commence exports from the 2nd quarter of 2010
- 34% increase in Mt Webber resources to 43.7Mt at 57.4% Fe
Pardoo DSO Mine Production Update
Atlas is pleased to report that it achieved record production at the Pardoo mine during the September quarter, as outlined in Table 1 below:
During the month of September the Company mined its 1 millionth ore tonne at Pardoo, and is on track to achieve 1 million tonnes shipped during 2009. With the recently installed and commissioned crushing and screening plant and construction of the Pardoo mine camp facility underway (targeted commissioning late November), the Company is well positioned to move towards its expand its production rate towards a target rate of 2.4Mtpa at Pardoo from the 2nd quarter of 2010.
-------------------------------------------------------Table 1: Pardoo Mine Production------------------------------------------------------- Sept. June Variance Variance Qrtr 09(t) Qrtr 09(t) Qrtr(t) (%)-------------------------------------------------------Ore Tonnes Mined 383,161 287,837 95,324 +33%-------------------------------------------------------Ore Tonnes Processed 293,838 265,499 28,339 +11%-------------------------------------------------------Ore Tonnes Shipped (Dry) 300,326 152,091 148,235 +97%-------------------------------------------------------
Wodgina DSO Mine Development Update
Atlas has recently exercised its right to access the existing Wodgina Mine Infrastructure under its arrangement with Talison Minerals, the owner of the Wodgina Tantalum Mine. In so doing, the Company has established a platform to rapidly progress towards the export of iron ore from the Wodgina Project at a low capital cost. The Company is on track to commence exports from Wodgina from the 2nd quarter in 2010, commencing at a rate of 2Mtpa.
Progress towards the development of the Wodgina DSO mine is well advanced with several of the of the construction contracts awarded. Work will commence on the upgrade to the intersection of the mine access road with the Great Northern Highway from early November, and CSI Pty Ltd is gearing up for the required modifications to the existing crushing and screening plant to facilitate iron ore sampling and final product stacking.
Tendering has commenced for both the Wodgina mining and haulage contracts, with the expectation that these key contracts will be awarded by the end of November and mid-December respectively. The crushing and screening contract is facilitated through the existing relationship between Talison Minerals and CSI Pty Ltd. Having recently signed the Wodgina DSO Project Native Title Agreement with the Kariyarra people and environmental assessment and approvals well underway, the Company is well placed to commence mining at Wodgina from February next year.
Discussions with potential off-take partners for Wodgina DSO product are also underway, with strong interest received from both existing Pardoo customers and a number of new parties. It is anticipated that initial off-take contracts for Wodgina will be signed during the December 2009 quarter.
Wodgina Resource Development
Wodgina is located 100km south of Port Hedland. Infill drilling is continuing at Wodgina, with the objective of converting the balance of the Anson Inferred Resource to JORC Indicated or Measured status for inclusion in reserve calculations. Recent significant intersections include:
Anson
92 metres at 58.2% Fe, 5.7% SiO2, 1.2% Al2O3, 0.08% P and 0.06% S from surface in WDRC105176 metres at 59.0% Fe, 4.3% SiO2, 1.3% Al2O3, 0.09% P and 0.06% S from 10m in WDRC104872 metres at 59.6% Fe, 3.7% SiO2, 1.4% Al2O3, 0.12% P and 0.02% S from 6m in WDRC109554 metres at 59.2% Fe, 5.8% SiO2, 1.0% Al2O3, 0.04% P and 0.04% S from surface in WDRC99754 metres at 60.3% Fe, 2.4% SiO2, 1.2% Al2O3, 0.12% P and 0.02% S from 22m in WDRC107750 metres at 59.2% Fe, 4.4% SiO2, 1.4% Al2O3, 0.06% P and 0.03% S from surface in WDRC955
Constellation
40 metres at 59.7% Fe, 3.5% SiO2, 1.6% Al2O3, 0.02% P and 0.13% S from 16m in WDRC91932 metres at 59.7% Fe, 3.2% SiO2, 1.6% Al2O3, 0.03% P and 0.11% S from 30m in WDRC925
Dragon
42 metres at 61.5% Fe, 3.5% SiO2, 0.6% Al2O3, 0.03% P and 0.07% S from 32m in WDRC89732 metres at 60.7% Fe, 4.3% SiO2, 0.4% Al2O3, 0.03% P and 0.10% S from 42m in WDRC898
Mt Webber Resource Growth
Mt Webber is located 150km south-southeast of Port Hedland. At the Mt Webber project, first-pass RC drilling is now complete, resulting in a 34% increase in Inferred Resource tonnes. The total resource at Mt Webber is now 43.7 million tonnes at 57.4% Fe, using a 53% Fe cut-off as set out in the Table below:
-------------------------------------------------------Mount Webber DSO Project Resource Table October 2009 >53% Fe------------------------------------------------------- Resource Kt Fe SiO2 Al2O3 P S LOI CaFe Classification (%) (%) (%) (%) (%) (%) (%) (%)-------------------------------------------------------Ibanez Inferred 25,005 57.3 6.2 2.0 0.08 0.03 9.0 63.0Fender Inferred 11,856 57.5 6.2 2.5 0.10 0.02 8.3 62.7Gibson Inferred 6,829 57.3 6.8 1.1 0.09 0.03 8.3 62.4-------------------------------------------------------Total Inferred Resources 43,690 57.4 6.3 2.0 0.09 0.03 8.7 62.8--------------------------------------------------------Total ResourcesMount Webber 43,690 57.4 6.3 2.0 0.09 0.03 8.7 62.8-------------------------------------------------------
Note: CaFe% is calcined Fe calculated by Atlas using the following formula (Fe%/(100-LOI%))*100
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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