MEDIA RELEASEPluton Resources announces 450 percent increase in...

MEDIA RELEASE
Pluton Resources announces 450 percent increase in Western Australian
iron ore resource estimates
Total resource estimates at Irvine Island, Western Australia, raised from 54 million to 294
million tonnes
Drilling results and beneficiation trials support a significant and highly profitable iron ore
operation at the site
Potential to produce up to 108 million tonnes of 66 percent iron concentrate, with very low
impurities
Exploration has been developed with support and involvement of the Native Title Claimant
Group ? the Mayala People
June 4 th 2010, Melbourne: Pluton Resources Limited (?Pluton?) has announced a substantial
increase in the iron ore resource estimate at its Irvine Island project in Western Australia.
The Company?s exploration program is achieving betterthanexpected
results to take the current
total iron ore resource estimate at Hardstaff Peninsula, Irvine Island from 54 million to 294 million
tonnes.
The program is less than half completed and Managing Director Tony Schoer says the highest
grade prospects are still to be explored.
Irvine Island is part of the Kimberley Iron Ore Hub, a threeisland
group which includes Koolan
and Cockatoo Islands, where Australia?s first iron ore mining began 60 years ago. Koolan and
Cockatoo Islands are still being mined today.
Pluton now expects the final Irvine Island resource, in terms of tonnage, to be bigger than the two
original mine sites combined.
The latest increase in resource is a combination of new discoveries and successful beneficiation
trials
CSIRO pilot scale test work has shown that magnetic separation can produce a concentrate with
an iron content of 65.62% iron (Fe) and 2.49% SiO2 with an iron recovery of 83.7% from
Wonganin sandstones (ASX announcement, February 5 th , 2010).
The sandstones were originally considered as waste but now represent an important additional
resource.
Mr Schoer said today that the exploration results indicated the proposed mining operation at
Irvine Island would be highly profitable. The iron ore can be loaded directly onto ships for the
Asian market. There is no need for expensive rail infrastructure and the access issues that rail
brings.
?We are anticipating capital investment of around A$350 million which includes beneficiation
plants and ship loading facilities,? he said.
?With total cash operating costs (including royalties) of around A$37/tonne onship,
it is expected
that a final product of 66% iron concentrate will produce tremendous profits and cashflow
for
Pluton for many years.
?At this stage of the exploration program, to be able to announce an upgraded Inferred Resource
of 294 million tonnes of quality feed to target production of up to 108 million tonnes of high grade
concentrate is a fantastic result.
?This has the potential to be an operation of