Atlas Iron
Limited (ASX: AGO)
ASX/Media Release – 25th
March 2008
ATLAS
TARGETS 120 TO 180 MILLION TONNES OF PILBARA IRON ORE
Atlas Iron Limited (ASX:AGO)
is pleased to report on continued exploration success from its tenements,
located between 75 and 150 kilometres from Port Hedland in the Pilbara of
Western Australia. Recent geological mapping and surface sampling has highlighted
exploration targets with combined potential for 120 to 180 million tonnes of
iron ore grading 57 to 60% Fe.
During recent mapping and
sampling the Company’s geologists have identified several new areas of
outcropping iron enrichment. These areas are typically delivering ore
grade mineralization in surface samples (57 to 63% Fe) and range in size up to
approximately 2,000 metres by 100 metres and 500 metres by 660 metres.
The program comprised a total of 144 surface samples (57 point and 87 traverse
samples). Individual traverse sample lengths varied from 19 to 91 metres
and were collected by geologists targeting representative true width and strike
length. The prospects discovered have subsequently been ranked for
drilling later this year.
Of a total of 144 surface
samples, 120 returned results above 55% Fe with only 10 samples returning results
below 50% Fe. Maximum individual value returned was 63.6% Fe with the
longest traverse results returning 660 metres averaging 58.3% Fe, 4.66% SiO2,
2.73% Al2O3, 0.067% P and 8.40% LOI. The average of
the 87 traverses samples was 47 metres long at 58.7 % Fe, 4.47% SiO2,
1.95 Al2O3, 0.07 % P, 8.51 LOI
Atlas remains on target to
commence exporting of iron ore in October 2008, from deposits discovered and
drilled out at Pardoo using the same exploration methods ie. geologists first
identify the largest and best outcrops and then test them with drilling (1,400
holes for 93,000 metres completed to date). Given the past success of
exploration exceeding previous targets, the company remains optimistic that
ongoing drilling during 2008 will deliver significant resource upside and a
rapidly growing production profile over the years ahead.
Atlas previously reported
it’s combined Pilbara tenements were prospective for a total of 30 to 40
million tonnes of Direct Shipping Ore (DSO) grading 57 to 60% Fe which was
sufficient to support a startup operation of 6 million tonnes per annum.
The revision to an exploration target of 120 to 180 million tonnes grading 57
to 60% Fe represents a fourfold increase and a major growth opportunity for the
Company.
In response to these recent
discoveries, Atlas has commenced conceptual studies into a larger project
centered on Abydos.
Atlas’ engineers are now investigating a 10MTPA DSO project with the
capacity for upgrade to 15MTPA.
“Atlas has a history of
getting our exploration targets right. These look like major discoveries and if
our assumptions are correct they have the capacity to make us Australia’s 4th
largest iron ore exporter.” commented David
Flanagan, Atlas’ Managing Director.
Background – Atlas
Projects
Environmental approvals remain on track for
commencing export of direct shipping grade (DSO) iron ore from the Pardoo
Project (75km east of Port Hedland) by October 2008. The company is
targeting export of 1 million tonnes of DSO iron ore during the first 12 months
of operations with production growing to 3 million tonnes per annum by
2010. Together with the development of the Abydos Project (120km south of
Port Hedland) the company is initially targeting production of 6Mtpa of DSO in
calendar year 2010, with continued growth thereafter.
For further information
please contact
David Flanagan,
Managing Director
Tel: (08) 9476 7900
While the
company remains optimistic it will report increases in resources and reserves
in the future, any discussion in relation to exploration targets, resource
potential, reserves or ‘ore’ is only conceptual in nature,
there has been insufficient exploration to define a Mineral Reserves and
resources and it is uncertain if further exploration will result in the
determination of a Mineral reserves and resources.
Rock chip
traverse sampling method involved collection a sample totaling approximately 1
to 2 kilogram of rock chips collected by hammering surface outcrop at nominal 1
meter spacing along a predetermined traverse generally across strike of
mineralization. Several rock chips are collected at each nominal 1 m spaced
sampling spot.
The
information in this report that relates to exploration results is based on
information compiled by Mr. Mark Gunther
who is a member of the Australian Institute of Geoscientists and is an employee
of Atlas Iron Limited. Mark Gunther
has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is undertaking
to qualify as a Competent Person as defined in the 2004 Edition of the
‘Australasian Code for Reporting of Exploration Results. Mark Gunther consents to the inclusion in the report
of the matters based on his information in the form and context in which it
appears.
READ CORPORATE
Public Relations
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T: (+61-8) 9388-1474
| F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au
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