September 07, 2008

Atlas targets up to 180 million tonnes of iron ore in Pilbara

Atlas Iron Limited recently said that recent geological mapping and surface sampling has highlighted exploration targets with combined potential for 120 million tonnes to 180 million tonnes of iron ore grading 57% to 60% Fe at its Western Australia tenements. Atlas said that a revision to an exploration target of 120 million tonnes to 180 million tonnes grading 57% to 60% Fe represents a four fold increase and a major growth opportunity for the company.

Atlas said that during recent mapping and sampling the company’s geologists identified several new areas of outcropping iron enrichment. It added that “These areas are typically delivering ore grade mineralization in surface samples and range in size up to approximately 2,000 meters by 100 meters and 500 meters by 660 meters.”

Atlas said the prospects discovered have subsequently been ranked for drilling later this year. It advised that it remained on target to commence exporting of iron ore in October 2008, from deposits discovered and drilled out at Pardoo.

Mr David Flanagan MD of Atlas Iron said that the discoveries appeared to be major and if assumptions were correct they had the capacity to make Atlas Australia’s fourth largest iron ore exporter. He added that “Atlas has a history of getting our exploration targets right.”

Atlas added that “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.”