Atlas Iron Limited (ASX:AGO) Wins Final Government Approval For Wodgina
Perth, April 30, 2010 AEST (ABN Newswire) - Atlas Iron Limited (
ASX:AGO) is pleased to announce that it has secured final Government approval for its Wodgina DSO Iron Ore Project ("Wodgina") to allow the commencement of mining. A mining fleet will now mobilise to site immediately, with mining due to start in early June 2010.
Atlas is now on target to achieve iron ore exports at a combined rate of 6 million tonnes per annum (Mtpa) from its Wodgina and Pardoo DSO mines in Western Australia by December 2010.
"This is a huge achievement and we are enormously proud of the whole team, Atlas Managing Director, David Flanagan said. "To take a project from an iron ore discovery to an iron ore mine in less than 18 months is simply remarkable. We are now well positioned to benefit from very strong demand, high iron ore prices moving forward, and to meet our target export rate of 6 Mtpa by December 2010.
WODGINA MINING CONTRACT
With all environmental approvals complete, mining is set to commence in early June 2010.
Following an extensive competitive tender process, BGC Contracting has been awarded the Wodgina Mining Contract with mobilisation commencing immediately and mining due to start in early June. BGC is an experienced iron ore mining contractor with existing contracts in place within Atlas' peer group.
Costs realised through the tender process are consistent with Atlas' expectations arising from its previous feasibility studies for the Wodgina DSO Project.
WODGINA NORTH PROSPECT EXPLORATION
Atlas is also pleased to advise that it has commenced drilling at the Wodgina North iron ore prospect.
Wodgina North has a previously reported exploration target of 20 to 40Mt at 57% Fe to 60% Fe. The extent and quality of the grade of outcropping iron enrichment (up to 900 metres wide grading 59% Fe) compares favourably to other prospects which have delivered resources and reserves elsewhere on Atlas tenements. An extensive programme of some 200 RC holes is currently underway.
In the event that drilling is successful, Atlas will move to fast rack feasibility studies, targeting a production expansion of Wodgina during late CY 2011.
BACKGROUND ATLAS IRON LIMITED
Atlas Iron Limited is mining and exporting from its 100%-owned Pardoo Iron Ore project, located 75 kilometres by road from Port Hedland in the Pilbara region of Western Australia. Atlas shipped over 1 million tonnes of Pardoo Direct Shipping Ore (DSO) in its first year of operation. Atlas is working to further expand its production following commissioning of the Utah Point port facility expected in late Q3 2010. When combined with additional export tonnages from its Wodgina DSO Project, the Company is targeting exports at an annualised rate of 6 million tonnes by the end of 2010, growing to 12 million tonnes by 2012.
View the Release here:
http://www.abnnewswire.net/media/en/docs/62741-ASX-AGO-489270.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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