Atlas Iron Limited (ASX: AGO)

ASX RELEASE                                                   25 SEPTEMBER 2008

PARDOO DSO PROJECT ? MINING TEAM MOBILISED TO SITE

Atlas Iron Limited (ASX Code: AGO) is pleased to report on progress towards the commencement of mining and export operations from its 100% owned Pardoo Iron Ore Project, located 75 kilometres by road from the port of Port Hedland, in the Pilbara of Western Australia.

 ?The approvals management team, led by Garry Plowright have ticked all the boxes.  They have consulted, engaged and satisfied every local, state government and non government stakeholder who registered a concern or comment on the project and they have done a great job?, commented Atlas Managing Director, David Flanagan.

?We would like to acknowledge the assistance of Ngarla (the Traditional Owners of the Pardoo Project area), the Department of Industry and Resources and the Environmental Protection Authority.?

?We look forward to working with the new State Government, led by Premier Colin Barnett, to assist in the further development of regional Australia as Atlas becomes the first company to be provided access to third party Port and Rail infrastructure in the history of mining in the Pilbara.?

PROJECT PERMITTING

All relevant Decision Making Authorities (DMA?s) and their representatives have now been consulted in the approval process and they have recommended that the relevant Ministers provide consent to commence mining at Pardoo. 

Atlas has also received advice from Main Roads ? Heavy Vehicle Branch, that the concessional loading permit has been approved facilitating road-train haulage to the port.  This is a major milestone in the development of the Pardoo Project and represents the culmination of over two years consultation with government and the community regarding the transport methodology for the project.

Atlas has received advice that its Project Management Plan, as required by the Department of Consumer and Employment Protection (DoCEP), has been approved by the District Mines Inspector.

Atlas has been advised by the relevant Government agencies that departmental reviews have been completed with final ministerial sign off remaining as the only outstanding barrier to mine commencement. Atlas stands ready to commence operations on site within 24 hours of receiving ?Mining Proposal Approval? by the Minister for Mines.

MINE DEVELOPMENT ACTIVITY

All contractors have been given notice to mobilise to site and to be ready for the commencement of mining and construction activity from early October. This process is now well underway as described below;

?         CDE Capital, a majority indigenous owned and operated mining contractor, has now fully mobilised the mining fleet. CDE?s management and operating personnel are currently being inducted to the site;

?         Castle Equipment, the project?s interim crushing and screening plant operator, is currently mobilising to site and is preparing to commence operations from early October;

?         IES Pty Ltd (Gould Transport) has a fleet of Quad Configuration road-trains (nominal 105 tonnes capacity each) in Port Hedland and will be ready to commence haulage on commencement of stockpile construction on site;

?         Accommodation has been resolved for all Atlas and non-Atlas mine site personnel; and

?         All Material site construction contracts have been awarded, including the major civil construction packages comprising earthworks, road construction and mine administration facilities.

PARDOO EXPLORATION

Atlas continues to aggressively explore for additional DSO resources at the Pardoo project targeting mine life extensions. Recent drilling has focussed on the prospective mineralised trend between the existing Olivia and Bobby Pits. The company will continue to keep the market informed of exploration results as it comes to hand.

BACKGROUND

The Company is planning to export of 1 million tonnes during its first 12 months of operations of the Pardoo Project.  First exports are on target to be achieved before the end of December 2008.  Together with additional export tonnages from Abydos the Company is ultimately targeting export of 6 million per annum tonnes by 2010 and 12 million tonnes per annum by 2012.

Atlas continues to explore it?s other tenements in the Pilbara and Midwest.  First pass drilling of 15 holes has now been completed at Weld Range in the Midwest. The Company is currently operating 4 drill rigs and constructing a 24 man camp (expandable up to 72 man) at the Abydos Project 120km South of Port Hedland.  Results will be disclosed as they come to hand.

Off take negotiations are at a very mature stage and the company anticipates disclosing arrangements in the coming weeks.

For further information please contact

David Flanagan, Managing Director  

Tel: (08) 9476 7900

Garry Plowright, Land Tenure and Approvals Manager

Tel: (08) 9476 7900

Ken Brinsden, Operations Manager

Tel: (08) 9476 7900

Figure 1 - Atlas Project Location Plan

Figure 2 ? Pardoo Site Layout Plan

READ CORPORATE
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