Atlas Iron Limited [ASX Code: AGO]
ASX
RELEASE
14
APRIL 2009
RIDLEY MAGNETITE PROJECT:
INITIAL ORE RESERVE STATEMENT
Atlas Iron Limited [ASX Code: AGO] is pleased to report the
initial Ore Reserve estimate for its 100%-owned Ridley Magnetite Project,
located 75km east of Port Hedland in the Pilbara region of Western Australia.
?
PROBABLE ORE RESERVE OF 970 MILLION TONNES at 36.0% FE
?
DAVIS TUBE CONCENTRATE GRADE OF
68.3% FE AND 3.8% SiO2
?
88% CONVERSION OF INDICATED
MINERAL RESOURCES TO PROBABLE ORE RESERVES
Following completion of Mining Studies for the Ridley Pre Feasibility
Study, international mining consultants AMC Consultants Pty Ltd (AMC) proceeded
to estimate the first JORC compliant Ore Reserve for the Ridley Magnetite
Project. The Ore Reserve is based on Mineral Resources developed by CSA
Consultants Pty Ltd of 2.01 billion tonnes @ 36.5% Fe (please refer to the
previously reported Resource Upgrade of 26 November 2008).
The Mineral Resources are inclusive of those Mineral Resources modified
to produce the Ore Reserves stated in this estimate.
Mineral Resources
were converted to Ore Reserves recognising the level of confidence in the
Mineral Resources estimate and reflecting modifying factors.
The initial Ore
Reserve was completed in accordance with The JORC Code (2004 Edition) by AMC
and estimates a total Probable Ore Reserve of 970 Mt @ 36.0% Fe. Details of the Ore Reserve estimate are summarized in
the table below:
Ridley Ore Reserve Estimate
|
Reserve
Classification
|
Tonnes
(Mt)
|
Fe
(%)
|
Concentrate
Product (Mt)
|
Fe in
Concentrate (%)
|
SiO2 in
Concentrate (%)
|
Probable Ore Reserve
|
970
|
36.0
|
330
|
68.3
|
3.8
|
Total Ore Reserve
|
970
|
36.0
|
330
|
68.3
|
3.8
|
?We are extremely
pleased to announce our initial magnetite Reserve at Ridley,? commented David Flanagan, Atlas? Managing
Director. ?This Probable Ore Reserve
demonstrates the size and quality of the Ridley Project and, when combined with
its strategic location close to Port Hedland, will ensure that the Ridley
Project is developed.?
Background Atlas Iron Limited
Atlas is mining at its 100%-owned Pardoo Iron Ore Project, located 75 kilometres by road from Port Hedland, in
the Pilbara region of Western Australia and completed its first shipment of
Pardoo Direct Shipping Ore in early December 2008. Atlas is planning to export
1 million tonnes during its first 12 months of operations at the Pardoo
Project, growing to 3 Mtpa following commissioning of the Utah Point port
facility. When combined with additional export tonnages from its Abydos DSO
Project, the Company is targeting exports at an annualised rate of 6 Mtpa by
2010, growing to 12 Mtpa by 2012.
For further information please contact
David Flanagan, Managing Director
Ken Brinsden, Operations Manager
Tel (08) 9476 7900
Ridley Magnetite In-Situ Resource - November 2008
|
Resource Classification
|
Mt
|
Fe
|
SiO2
|
Al2O3
|
P
|
S
|
LOI
|
Density
|
(%)
|
(%)
|
(%)
|
(%)
|
(%)
|
(%)
|
(g/m3)
|
Indicated
|
1,100
|
36.6
|
39.4
|
0.08
|
0.09
|
0.05
|
3.9
|
3.5
|
Inferred
|
910
|
36.4
|
39.1
|
0.08
|
0.09
|
0.05
|
4.4
|
3.5
|
All Resources
|
2,010
|
36.5
|
39.3
|
0.08
|
0.09
|
0.05
|
4.1
|
3.5
|
|
|
|
|
|
|
|
|
|
Ridley Magnetite Resource, Davis Tube Concentrate
Grades - November 2008
|
Resource Classification
|
Mt
|
Concentrate
Mass
|
Fe
|
SiO2
|
Al2O3
|
P
|
S
|
LOI
|
Recovery (%)
|
(%)
|
(%)
|
(%)
|
(%)
|
(%)
|
(%)
|
Indicated
|
1,100
|
37.0
|
68.9
|
4.1
|
0.03
|
0.01
|
0.01
|
-2.7
|
Inferred
|
910
|
37.5
|
68.9
|
4.1
|
0.02
|
0.01
|
0.01
|
-2.7
|
All Resources
|
2,010
|
37.2
|
68.9
|
4.1
|
0.03
|
0.01
|
0.01
|
-2.7
|
Mineral Resource tables in 26 November 2008 Resource Update, for the
Ridley Magnetite Project.
COMPETENT PERSONS STATEMENTS
Mineral Resource Estimation - Ridley Deposit
The information in this report that relates to mineral resources results
is based on information compiled by Mr Malcolm Titley who is a member of the
Australasian Institute of Mining and Metallurgy. Malcolm Titley is a full time
employee of CSA Global Pty Ltd. Malcolm Titley has sufficient experience which
is relevant to the style of mineralization and type of deposit under
consideration and to the activity which they have undertaken to qualify as a
Competent Person as defined in the 2004 Edition of the ?Australasian
Code for Reporting of Exploration results, Mineral Resources and Ore Reserves?.
Malcolm Titley consents to the inclusion in the report of the matters based on
their information in the form and context in which it appears.
Ore Reserve Estimation Ridley Deposit
The sections in this report that relate to the Ridley Ore Reserves are
based on information compiled under the direction of Mr Bruce Gregory. Mr
Gregory is a Member of the Australasian Institute of Mining and Metallurgy and
is a full time employee of AMC Consultants Pty Ltd. Mr Gregory has sufficient
experience relevant to the style of mineralization and type of deposit under
consideration to qualify as a Competent Person as defined in the 2004 Edition
of the ?Australasian Code for Reporting of Exploration results, Mineral
Resources and Ore Reserves?. Mr Gregory consents to the inclusion in the report
of the matters based on their information in the form and context in which it
appears.