EXCELLENT FIRST DRILL RESULTS FROM WELD RANGE
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1 27 th October 2008 EXCELLENT FIRST DRILL RESULTS FROM WELD RANGE Atlas Iron Limited (ASX Code: AGO) is pleased to announce a number of high grade results from the first drilling programme completed at its Weld Range DSO Project in the Midwest region of Western Australia. This first round of drilling was designed to test two parallel mineralised zones along strike from an existing open pit. A total of 14 RC holes were drilled for 1,131 metres to test two parallel lodes over a strike length of 350 metres. Intercepts corresponded well to interpretations based on previous drilling and surface mapping. Mineralisation remains open at depth over the entire strike. Better intercepts include: 58 metres at 65.1% Fe and 0.05% P from 62 metres in WRRC006 56metres at 63.7% Fe and 0.06% P from 18 metres in WRRC metres at 66.3% Fe and 0.03% P from 52 metres to end of hole in WRRC011 We are very pleased with these results, they are better than we had anticipated and we look forward to the outcome of resource estimation and scoping studies due for conclusion by year end. commented David Flanagan, Atlas Iron s Managing Director. The lodes outcrop discontinuously over a strike length of over 1,000 metres. In drilling completed to date the main lode varies in width between 30 and 50 metres and the hanging wall lodes vary in width between 10 to 15 metres. Some holes ended in mineralisation as a result of difficult drilling conditions. Further drilling will utilise larger drill rigs, with sufficient capacity to achieve target depths. Background Atlas Iron Limited Atlas recently commenced mining at its 100%-owned Pardoo Iron Ore Project in the Pilbara of Western Australia where it is targeting its first shipment in December Atlas is fully funded with approximately $100 million cash at bank and zero debt as it completes commissioning of Stage One and ramp up to 1Mtpa. Atlas is planning to export 1 million tonnes during its first 12 months of operations at the Pardoo Project, growing to 3 Mtpa for year 2. With additional export tonnages from Abydos, the Company is targeting exports of 6 Mtpa for 2010, growing to 12 Mtpa by Together with Mount Gould, Weld Range forms part of Atlas 100%-owned Midwest Iron Ore Project. Both deposits are located on granted mining leases with historical iron ore production. The tenements are located within 30km of the planned railway infrastructure being proposed for development as part of the Oakajee Port Development. Consistent with Atlas strategy, the Midwest tenements present a low capital cost mining opportunity with potential for start-up using road trains trucking to facilitate exports through the existing Geraldton Port prior to completion of the new port at Oakajee. The Company is targeting a resource of 30 to 40Mt of iron ore grading 60-66% Fe across the two projects.
2 For further information please contact David Flanagan, Managing Director Andrew Paterson, Geology Manager Ken Brinsden, Operations Manager Tel (08) Exploration Results 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. References to Exploration/Production targets and Potential While the company remains optimistic it will report resources and reserves in the future at its Midwest Projects, any discussion in relation to exploration targets, resource potential, reserves or ore is only conceptual in nature, as there has been insufficient exploration to define a Mineral Resource at the company s Midwest Projects and it is uncertain if further exploration will result in the determination of a Mineral Resource.
3 Midwest - Project Location Plan
4 Drill hole location Plan Drill hole section A-B
5 WELD RANGE RC DRILLING RESULTS East North Az Depth Width SiO2 Al2O3 P LOI Hole ID MGA94 MGA94 Dip (MGA) (m) From to (m) Fe% % % % % WRRC Includes WRRC Includes Includes WRRC Includes WRRC Includes Includes WRRC Includes Includes WRRC006* Includes Includes WRRC WRRC WRRC010* Includes Includes WRRC011* Includes WRRC Includes WRRC Includes WRRC includes Note: 2m composite samples, riffle split sampling, 55.0% Fe lower cut, no upper cut, maximum internal waste of 2 m, analysis by X-Ray Fluorescence Spectrometry Method with Loss on Ignition (LOI) determined using Thermo-Gravimetric Analyses. Note: * denotes mineralisation to end of hole.
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