Atlas Iron Limited - Discovered New Direct Shipping Ore At Wodgina

13:47 AEST June 16, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.

Perth, Australia (ABN Newswire) - Atlas Iron Limited (ASX: AGO) is pleased to report the discovery of 'Hercules', a new direct shipping grade iron ore (DSO) prospect, at its Wodgina DSO operation, 110 kilometres south of Port Hedland in Western Australia.

Hercules, located 3 kilometres from the mine infrastructure, has now been drilled on an 80 metre by 80 metre grid pattern and better results include:


Hercules

- 52 metres at 59.5% Fe from surface in WDRC1446
- 46 metres at 59.3% Fe from 2 metres in WDRC1506
- 32 metres at 58.5% Fe from surface in WDRC1421
- 34 metres at 58.0% Fe from 16 metres in WDRC1422

'Clearly there is an opportunity to generate significant value and mine life from these types of discoveries,' commented David Flanagan, Atlas' Managing Director. 'As the team continues to find new deposits, the Wodgina project is becoming the company maker we always thought it could be.'

As part of ongoing resource development the Company is also following up on extensions to discoveries at Avro and Anson reported during 2009. New areas of mineralisation have been identified and it is likely they will provide material contributions to the Wodgina resources and reserves later in the year. Better results include:


Dragon

- 70 metres at 59.7% Fe from surface in WDRC1221
- 64 metres at 59.2% Fe from surface in WDRC1215
- 56 metres at 59.4% Fe from 10 metres in WDRC1230
- 52 metres at 59.6% Fe from 36 metres in WDRC1296


Avro

- 38 metres at 59.9% Fe from 34 metres in WDRC1451
- 26 metres at 58.9% Fe from 36 metres in WDRC1315
- 32 metres at 58.3% Fe from 30 metres in WDRC1262
- 38 metres at 58.1% Fe from 10 metres in WDRC1455

Atlas remains on track to achieve iron ore exports at a combined rate of 6 million tonnes per annum from its Pardoo and Wodgina operations by December 2010.


Background

Atlas Iron Limited is mining and exporting from its 100%-owned Pardoo Iron Ore project, located 75 kilometres by road from Port Hedland in the Pilbara region of Western Australia. Atlas shipped over 1 million tonnes of Pardoo Direct Shipping Ore (DSO) in its first year of operation. Atlas is working to further expand its production following commissioning of the Utah Point port facility expected in late Q3 2010. When combined with additional export tonnages from its Wodgina DSO Project, the Company is targeting exports at an annualised rate of 6 million tonnes by the end of 2010, growing to 9 million tonnes by the end of 2011.


For the complete Atlas Iron Limited announcement including Wodgina Drill Results Table and Wodgina DSO Project Figure, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/63100-ASX-AGO-494464.pdf


About Atlas Iron Limited:

Atlas Iron (ASX:AGO) is an emerging producer and active explorer focused on the discovery and development of iron ore projects. With a growing number of high quality iron ore projects and one of the largest landholdings in the Pilbara (8,900km2) located close to infrastructure, the Company has created a successful business by targeting resources and reserves capable of being mined with relatively low capital expenditure.



Contact:

David Flanagan, Managing Director
Andrew Paterson, General Manager Geology
Atlas Iron Limited
Tel: +61-8-9476-7900
Fax: +61-8-9476-7988
www.atlasiron.com.au