Ferraus Limited (ASX:FRS) Iron Ore Reserve Increases To 163 Million Tonnes

Sydney, May 13, 2011 AEST (ABN Newswire) - FerrAus Limited (ASX:FRS) (PINK:FRRAF) today announced that the iron ore reserve estimate has increased to 163 million tonnes, at 57.4 per cent Fe, for the FerrAus Pilbara Project in Western Australia.

The Mirrin Mirrin maiden reserve figure of 37 million tonnes has an analysis of 57.5 per cent Fe, 4.3 per cent SiO2, 2.3 per cent Al2O3 , 0.09 per cent P and 8.7 per cent LOI.

The recent Ore Reserve Statement provided by Snowden Mining Industry Consultants (Snowden), has determined that the FerrAus Pilbara Project contains Probable Ore Reserves of 163 million tonnes, contained within the optimised pit designs for the King Brown (Robertson Range), Python-Gwardar, Taipan and Mirrin Mirrin (Davidson Creek) Resources.

This Iron Ore Reserve figure represents an increase of 37 million tonnes or 29 per cent on the previous Reserve figure of 126 million tonnes (FRS ASX announcement 15 November 2010). The increase in the Reserve figure is directly attributable to the completion of mining studies for the Mirrin Mirrin Resource.

Managing Director, Cliff Lawrenson, considers that an increase of almost one third in the Reserve figure is another impressive milestone in the development of the Project.

"This is a fantastic result for the FerrAus Pilbara Project and one which provides another big boost for our team, as we continue to progress towards delivering the first shipment of iron ore before the end of 2014," he said.

"One of the key points to highlight is the excellent level of conversion from Resource to Reserve at Mirrin Mirrin.

"The Definitive Feasibility Study team is now running at full speed and the Study is on target to be completed by the end of 2011.

"Our current resource total is 331 million tonnes and the corporate resource target remains at 400 million tonnes.

"Also, the current DFS target specification for the product is 59 per cent iron, 2.3 per cent aluminium oxide, 4 per cent silica, 0.09 per cent phosphorous and 8.3 per cent Loss On Ignition, which will be achieved with minimal beneficiation.

"My first few months at FerrAus have been very exciting and the pace is only going to increase as we move through the different phases to achieve production," Mr Lawrenson said.

For the complete FerrAus Limited announcement including tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/541689.pdf

Contact

Martin Debelle Tel: +61-2-9290-3023 Email: info@ferraus.com http://www.ferraus.com