Iron Road Limited (ASX:IRD) Central Eyre Iron Project Progress Update

Perth, Mar 11, 2011 AEST (ABN Newswire) - Iron Road Limited (ASX:IRD) is pleased to report on current progress at the Central Eyre Iron Project (CEIP).

Summary

- Prefeasibility study on track with anticipated completion of Boo-Loo/Dolphin component of the report by end of March 2011.

- Processing scenario determined whereby high pressure grinding rolls (HPGR) crushers eliminate the need for dry magnetic separation altogether resulting in an 8% increase of mass recovery to produce a coarse-grained, high grade sinter feed - this will have a positive effect on both CapEx and OpEx.

- Prefeasibility study geotechnical drilling at Murphy South complete and confirms high quality of rockmass, allowing for favourable parameters when designing optimum open pit shells.

- Commencement of resource extension drilling programme at Murphy South, expected to add 80-120Mt to the existing mineral resource estimate of 907Mt.

- Approval by PIRSA of Stage VI resource expansion drilling programme immediately west of Murphy South comprising 66 diamond holes totalling in excess of 25,000m.

- Continued sponsorship and support of local community events and organisations.

Murphy South

Geotechnical Drilling

Ten HQ triple tube geotechnical drill holes (for 2,590m) were completed at Murphy South on 23 February 2011. Collected data will be used for optimisation and pit design of the Murphy South orebody for the prefeasibility study. These drill holes confirmed the excellent physical properties of the rockmass favouring stable pit benches.

Resource Extension

A resource extension programme of eight drill holes (for 4,520m) commenced at Murphy South on 20 February 2011 and is currently in progress.

The purpose of this drilling is to intersect and record the down dip extension of the magnetite along six existing traverses. This drilling is expected to add approximately 80-120Mt to the existing mineral resource estimate of 907Mt at Murphy South.

Resource Expansion

Primary Industries and Resources South Australia (PIRSA) has approved the Stage VI drilling programme at Murphy South comprising 66 diamond holes totalling in excess of 25,000m.

Individual diamond holes range from 100m-600m in depth with drilling on a 200mx100m pattern. This drilling programme will explore the western extension of the Murphy South orebody over an area 800m wide x 2000m long.

Prefeasibility Study

Work is continuing on the prefeasibility study with anticipated completion for Boo-Loo/Dolphin by the end of March 2011. Test work on Murphy South is still in progress and this data will be incorporated into a final combined prefeasibility study document by the end of May 2011.

The prefeasibility study has considered four processing scenarios in some detail. Dry magnetic separation (DLIMS or coarse cobbing) has proven to work extremely well for both Boo-Loo and Murphy South ores. Similarly test work shows that the use of high pressure grinding rolls (HPGR) crushers will work well and efficiently and in one process scenario HPGR crushers eliminate the need for DLIMS altogether. In this scenario CapEx and OpEx are much reduced with an increase in the mass recovery from 20.5% to 22.1%, translating to an 8% increase in recoverable product.

Marketing studies indicate that a coarse-grained, high grade sinter feed (P80 of -106 micron) with low impurities, is a product in high demand from the steel mills of southeast Asia.

In addition to excellent magnetic separation and HPGR test work results, communition tests are within acceptable limits and broadly consistent, with little variability within and between the Boo-Loo and Murphy South areas.

Dynamic thickening tests demonstrate magnetite concentrate settling readily with thickening to ~80%, well above the required target value of 60-65%. This allows for concentrate thickeners to be discarded from the process flow-sheet design altogether. Similarly, test work indicates that tailings can be readily thickened to the required target value. These characteristics allow for reduced CapEx and OpEx.

Horizontal belt filtration (HBF) test work produced exceptional results with respect to the filtration rate and drying times and the target moisture content of 8% is easily achieved. These have direct bearing on reducing the required CapEx and OpEx. A typical filtration rate for magnetite is 708 kg/m2/h. Boo-Loo concentrate produced rates 3939-4883 kg/m2/h, indicating the need for a relatively small filtration area.

Community

The Company continued to sponsor local community events in Wudinna and Lock and provided donations and support to local sporting clubs in Warramboo and Kyancutta. Recent notable events include the Lock Cup picnic races and the 20/20 Challenge exhibition cricket match organised by the Eyre Peninsula and Port Adelaide Cricket clubs.

For the complete Iron Road announcement including figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/533000.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