Atlas Iron has received some outstanding exploration drilling results from the Wodgina Iron Ore Project in the Pilbara region of Western Australia.

Selected results include 68 metres from surface @ 60.0% iron and 0.08% phosphorus, 46 metres from 18 metres @ 60.6% iron and 0.03% phosphorus, 36 metres from 20 metres @ 57.4% iron and 0.06% phosphorus, 34 metres from 42 metres @ 57.9% iron and 0.03% phosphorus, 28 metres from 2 metres @ 58.5% iron and 0.08% phosphorus, 26 metres from surface @ 60.6% iron and 0.05% phosphorus, 34 metres from 6 metres @ 59.2% iron and 0.08% phosphorus, and 26 metres from 16 metres @ 59.2% iron and 0.11% phosphorus.

By mid-year, Atlas expects to report increased resources, report initial reserves and disclose the findings of the Wodgina Scoping Study.

Atlas managing director David Flanagan says, “Wodgina is looking very good. In the last 3 months, we have completed a Mine Infrastructure Sharing Agreement with Talison, increased our port capacity allocation and enjoyed very significant exploration success.

“Wodgina is already showing strong potential for low strip ratio, highly marketable direct shipping grade ore, at a very low capital cost and it is less than 3km from the Wodgina production infrastructure.”

The scoping study is progressing well with metallurgical drilling having already been completed, metallurgical test work under way, initial environmental baseline surveys started and Native Title negotiations commenced. Wodgina is 100km south of Port Hedland.

Since mid-January Atlas has completed 390 RC holes for 21,685 metres as initial drill testing of targets abutting the Talison mine and adjacent to the maiden Anson resource. Assay results have been returned for 331 holes.

Atlas is mining at its Pardoo Iron Ore Project, 75km from Port Hedland, and completed its first shipment of Pardoo DSO in early December 2008. Atlas plans to export 1 million tonnes in its first 12 months of operations at Pardoo, growing to 3 million tonnes/year following commissioning of the Utah Point port facility.

When combined with additional export tonnages from its Abydos DSO Project, the company is targeting exports at an annual rate of 6 million tonnes in 2010, growing to 12 million by 2012.

www.atlasiron.com.au