FerrAus Limited (ASX:FRS) Announce Maiden Iron Ore Reserve Of 126 Mt At FerrAus Pilbara Project With Total Resource Increased to 328.7 Mt

Perth, Nov 15, 2010 AEST (ABN Newswire) - FerrAus Limited (ASX:FRS) (PINK:FRRAF) today announced its maiden iron ore reserve estimate of 126 million tonnes at 57.3 per cent Fe for the FerrAus Pilbara Project in Western Australia.

The Ore Reserve Statement provided by Snowden Mining Industry Consultants (Snowden), is a foundation component of FerrAus Limited's Pre Feasibility Study (PFS) for mining, which has determined that the FerrAus Pilbara Project contains Probable Ore Reserves contained within optimised pit designs.

Also, analysis of additional drilling results at the Mirrin Mirrin Prospect has led to a 23 per cent increase in the +55 per cent Fe resource, to 37.9 million tonnes. This takes the total resource for the FerrAus Pilbara Project to 328.7 million tonnes.

Iron Ore Reserve

Snowden has been a key consulting group driving the FerrAus PFS resources, geotechnical and mine planning evaluation activities. The FerrAus Pilbara Project total ore reserve estimate comprises iron ore material from both Davidson Creek (excluding Mirrin Mirrin) and Robertson Range Areas. This Ore Reserve estimate is inclusive of the total Mineral Resource for the FerrAus Pilbara Project.

During the mining study, advanced metallurgical test work was completed and subsequently reported confirming the assumed metallurgical recoveries. Based on that report, the current Inferred Mineral Resource material for Robertson Range between 53 per cent and 55 per cent Fe and Davidson Creek between 52 per cent and 55 per cent Fe, was upgraded to an Indicated Mineral Resource.

Comprehensive metallurgical test work has been conducted and reported by Sinclair Knight Merz (SKM) for the PFS and the assumptions used for the PFS and subsequently confirmed, are presented in Table 2.1. These assumptions form the basis for resource and mining studies conducted by Snowden.

This maiden probable reserve is a significant milestone for FerrAus as it progresses towards mine development.

Mirrin Mirrin

In addition the analysis of recent RC drilling results from the Mirrin Mirrin Prospect has lifted the total resource for the FerrAus Pilbara Project to 328.7 million tonnes.

The analysis of the results increased the +55 per cent Fe resource from 30.8 Mt to 37.9 Mt and the 50-55 per cent Fe resource from 18.1 Mt to 23.3 Mt, an overall increase in resources of 12.3Mt.

The Mirrin Mirrin Prospect is part of the Davidson Creek Area within the Project and this program of 200 metre x 50 metre spaced RC drilling was completed in late September.

The results from the new exploration holes, which are outside the defined resource area, continue to indicate that Fe mineralisation is continuous along strike to the east and west, as well as to the north.

"The announcement of a maiden iron ore reserve is a major milestone for FerrAus," the Executive Director, Bryan Oliver, said.

"Together with the new total resource this represents a very significant and exciting step as we continue to build toward our corporate goal to achieve a resource of 400 million tonnes.

"As our exploration programs continue and the drilling results are analysed Mirrin Mirrin is growing in importance and it could now be considered the cornerstone area within the FerrAus Pilbara Project.

"These recent Mirrin Mirrin results will be included, as part of the initial work on finalising and optimising the scope of the project, in the DFS," he said.

The total resource (JORC) for the FerrAus Pilbara Project is 328.7 million tonnes. FerrAus Limited has stated that its corporate objective is to achieve a resource total of 400 million tonnes which, depending on future drilling and development, may or may not be achieved.

For the complete FerrAus announcement including figures and tables, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/64184-ASX-FRS-515277.pdf

Contact

Bryan Oliver Executive Director Tel: +61-8-9474-3770 http://www.ferraus.com