Flinders Mines Limited announced an updated JORC compliant resource for the Pilbara Iron Ore Project located in Western Australia’s central Pilbara region.

Flinders’ global JORC compliant Mineral Resource for the project has increased from 550.1 million tonnes 55.6% Fe to 658.3 million tonnes 55.4% Fe. The Mineral Resource inventory based on a +50% iron cut off now consists of an Indicated Resource of 156.6 56.5% Fe and an Inferred Resource of 501.7 million tonnes 55.0% Fe.

The higher quality component of this resource is 347.7 million tonnes 57.4% Fe. This component of the resource now includes a significantly larger proportion of BID mineralization. This comprises 206.6 million tonnes of Bedded Iron Deposit at 56.3% Fe and 141 million tonnes of Lower Channel Iron Deposit at 59.0% Fe.

The size of this higher quality resource significantly enhances the project development options available to Flinders and will now be assessed in the pre feasibility maiden resource at the Anvil tenement, a significant increase in the resource at the Ajax deposit on the Blacksmith tenement and extending several Bedded Iron Deposit mineralized zones.

The individual resources for each of the deposits have changed from the previous Inferred Resource estimate in April 2009. Some of the changes are due to additional drilling; however there are also changes due to modifications in the resource models.

The new geological model has improved the resource models to be more representative of mineralized zones based on geometallurgy. Additional knowledge was gained by carrying out the more detailed Indicated Resource at Delta, enabling modifications to be made to the existing models.

The maiden Inferred Resource for Anvil of 82.4 million tonnes 53.6% Fe is best developed in the southern part of the tenement with little coherent mineralization intersected on the remainder of the tenement. This resource is lower than the Exploration Target and contrasts with the richer iron mineralization at the Blacksmith tenement.