Atlas jumps on 527% resource increase

19/05/2009 - 11:06

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Shares in Atlas Iron have risen after the miner announced a five-fold resource increase at its Wodgina iron ore project near Port Hedland.

Atlas jumps on 527% resource increase

Shares in Atlas Iron have risen after the miner announced a five-fold resource increase at its Wodgina iron ore project near Port Hedland.

The company today said the iron ore resource has jumped from 8.1 million tonnes grading at 57.5 per cent iron to 42.7mt grading at 56.3 per cent iron.

Managing director David Flanagan said the resource jump was a result of an aggressive drilling campaign over the past six months.

"As yet we've only drilled half the targets in the area, which suggests Wodgina is likely to get even larger," Mr Flanagan said.

"We are now fast tracking feasibility studies to underpin our plans to commence mining here in Q1 2010 and take full advantage of the recently signed Wodgina mine infrastructure access agreement."

Shares in Atlas jumped 20 cents or 14 per cent to a high of $1.68 before easing to $1.57 at 12:43 AEST.

 

 

The announcement is below:

 

 

Atlas Iron Limited [ASX Code: AGO] is pleased to announce a 527% increase in the DSO resource at its
Wodgina DSO Project from 8.1Mt at 57.5% Fe (see announcement of 15 January 2009) to 42.7Mt at 56.3% Fe.
The Wodgina DSO Project (Atlas 100% Fe Rights) is located 100km south of Port Hedland in the Pilbara of
Western Australia.

"This is a 5-fold increase in the DSO resource since January 2009, and a direct result of our aggressive drilling
campaign at Wodgina in the past 6 months", commented David Flanagan, Atlas' Managing Director.

"As yet we've only drilled half the targets in the area, which suggests Wodgina is likely to get even larger. We are
now fast tracking feasibility studies to underpin our plans to commence mining here in Q1 2010 and take full
advantage of the recently signed Wodgina mine infrastructure access agreement."

"Wodgina fits Atlas' project profile perfectly as it provides good potential for a low capex mine with low strip
ratios and established infrastructure, very close to a world class port," Mr Flanagan added.

The inferred resource increase is the result of an extensive exploration campaign at Wodgina, consisting of
724 holes for 41,000m of drilling, testing surface iron enrichment within a 1.5 to 5km radius of Talison's
crushing and screening plant. Atlas has completed infill drilling on the Anson orebody, and metallurgical test
work is underway. This inferred resource total includes 17.5 million tonnes at 57.3% Fe at Anson, which is
likely to be the first area to be mined. A new resource estimation, incorporating the closer-spaced infill drilling
which will bring Anson to JORC Indicated category, is on track to be delivered in June 2009.

When reported using a 55% Fe cut-off grade, the inferred resource at Wodgina contains a higher grade
component of 26.8 million tonnes at 57.6% Fe.

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