Iron Road Limited (ASX:IRD) Processed Murphy South 'Discovery Traverse' Results For Central Eyre Iron Project

Perth, Jan 10, 2011 AEST (ABN Newswire) - Iron Road Limited (ASX:IRD) (Iron Road) is pleased to advise that XRF assay and DTR results for the Stage IV 'Discovery Traverse' at Murphy South have been processed.

Summary

- Assays indicate wide continuous intervals of magnetite mineralisation suited to bulk mining by open cut methods.

- DTR test work from composite samples from all drill hole across the 'Discovery Traverse' confirms that a high quality iron concentrate with very low impurities may be produced.

- Distribution of iron grades suggests low strip ratio and minimal dilution likely in an open pit scenario.

- Stage V drilling programme comprises an additional nine traverses across Murphy South that all indicate similar intervals of magnetite gneiss easily correlatable between sections (refer announcement 17 December 2010).

Discovery Traverse

The Discovery Traverse (562140mE) was completed during the Stage IV drilling programme designed to test the Murphy South magnetic anomaly. Summary geological logging of the cross-section indicates a large body of magnetite mineralisation, with a sectional area of approximately 179,000m2. Based on this single cross section, a potential open cut pit may be expected to have a vertical depth of approximately 450m and a width exceeding 1000m.

The magnetite mineralisation is characterised by two main rock types. One is a fairly uniform disseminated coarse-grained magnetite gneiss and the other a banded magnetite gneiss comprising layers of disseminated coarse-grained magnetite separated by barren quartz-feldspar bands. Test work from the nearby Boo-Loo prospect indicates that magnetite gneiss of similar character is amenable to upgrading by dry LIMS (coarse cobbing or dry magnetic separation) at -25mm during the first stage of mineral processing.

Structural analysis will determine the exact nature of the geology, though it is possible that the mineralisation outline defines an overturned isoclinal synform with both limbs truncated by erosion below shallow surface cover.

Significant Assays

All RC pre-collars and diamond tails were sampled by XRF. RC holes were sampled using 2m composites and diamond core using 4m composites (and 2m across contacts). Assays indicate consistent continuous down hole intervals of magnetite gneiss of up to 331m width and within these broad intervals higher grade zones occur of varying width - these are included in the tabulation.

DTR Test Work

Davis Tube Recovery (DTR) test work was undertaken on diamond core across intervals logged as magnetite with certain qualifying criteria by the geologist (visually and with the use of various aids). Individual samples comprise 4m composites with 2m composites across ore / waste contacts. All DTR's were conducted at a standard P80 of -40µm and are presented in Table 2 (see link at the bottom of the release). A total of 251 DTR tests were completed.

DTR results indicate that a high quality iron concentrate may be produced from all drill holes with very low impurities. Metallurgical test work done on samples from the nearby Boo-Loo prospect indicates that a high grade blast furnace feed at a coarse grind of 106µm may be produced. It is expected that current test work on the magnetite gneiss at Murphy South will produce similar results.

For the complete Iron Road Limited announcement including figures, tables and appendix, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/64952-ASX-IRD-523922.pdf

Contact

Andrew Stocks Managing Director Iron Road Limited Tel: +61-8-9200-6020 Mob: +61-403-226-748 Email: astocks@ironroadlimited.com.au http://www.ironroadlimited.com.au