robertson range iron ore project upgrade

ROBERTSON RANGE IRON ORE PROJECT
Total Resource now 45 Million Tonnes after
30% Increase in Main Zone Deposit
The Company is pleased to announce a significant upgrade to the resource
estimate for the Main Zone at its Robertson Range iron ore project, East
Pilbara region, Western Australia.
Main Zone = 40 Million Tonnes @ 58.8% Fe
4.8% SiO2, 2.8% Al2O3, 0.11% P and 7.6% LOI
Calcined Fe = 63.6%
“This resource upgrade for the Main Zone deposit represents a 30%
increase over the 30.6Mt resource announced on 24 October 2007.”
“The shape and size of this iron ore deposit will likely support production
rates of at least 4-5 million tonnes per year and comparatively low cost
structures.”
“Mine planning and feasibility studies will be revised to include this resource
upgrade and evaluate improvements in project economics from increased
production rates” said FerrAus Managing Director – David Turvey.
Resource
Classification
Material
Type
Tonnes
(Mt)
Grade %
Fe SiO2 Al2O3 P LOI
Indicated
Hardcap 6.2 57.0 6.08 3.62 0.095 8.29
Mineralised 27.9 59.1 4.45 2.65 0.117 7.63
Sub-total 34.1 58.7 4.74 2.82 0.113 7.75
Inferred
Hardcap 0.5 55.9 6.75 3.02 0.126 7.96
Mineralised 5.4 59.3 5.26 2.55 0.096 6.55
Sub-total 5.9 59.1 5.38 2.59 0.100 6.66
Total 40 58.8 4.83 2.79 0.111 7.59
(refer to attached resource statement completed by Coffey Mining in accordance to JORC Code)
Highlights:
�� The combined resource for the Main Zone and South West Zone at
the Robertson Range project is 45 million tonnes (refer to location
plans.) Exploration potential of these zones is 50-55 million tonnes.
RC drilling of extensions to the resources and mineralisation is
currently underway.
�� Overall at its Pilbara iron ore projects, FerrAus believes it has a
realistic opportunity to identify iron mineralisation and grow the
resource base to 100 million tonnes grading 57 to 60% Fe during
2008 and ultimately to 250 million tonnes (refer also announcement
released to ASX 24 April 2008).
ROBERTSON RANGE IRON ORE PROJECT:
Resource Upgrade 22 May 2008
Figure 1: East Pilbara Iron Ore Projects - Location Plan
(Note: gravity geophysical surveys as coloured inset images)
Mr David Turvey - BSc (Hons), MAusIMM, who is Managing Director and a full-time employee of FerrAus Limited, has over 25 years
experience in mineral exploration and resource project evaluation. He has more than five years relevant experience in 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 “AusIMM Australasian Code for Reporting of Exploration Results”. Mr Turvey consents to the inclusion in
the report of the matters based on the information in the form and context in which it appears
FerrAus Limited has not yet reported Mineral Resources from exploration of unnamed gravity targets on its Davidson Creek or Robertson
Range iron ore project. While the company remains optimistic it will report resources in the future, any discussion in relation to exploration
potential or targets or potential iron mineralisation is only conceptual in nature and it is uncertain if further exploration will result in
determination of a Mineral Resource.
This release may include forward‐looking statements that are based on management’s expectations and beliefs concerning future events.
Forward‐looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of FerrAus
Limited, that could cause actual results to differ materially from such statements. FerrAus Limited makes no undertaking to subsequently
update or revise the forward‐looking statements made in this release to reflect events or circumstances after the date of this release.
ROBERTSON RANGE IRON ORE PROJECT:
Resource Upgrade 22 May 2008
Figure 2: Robertson Range Iron Ore Project
Location Plan: Resources and Exploration Targets
Notes:
The coloured base image is gravity geophysical survey.
Red = high density rocks including Fe mineralisation, blue & green = lower density rocks.
The South West Zone contains an inferred resource of 5.03 million tonnes at 59.6% Fe
(55% Fe lower cut-off applied – refer announcement released to ASX 1 April 2008)
Coffey Mining Pty Ltd ABN 52 065 481 209
1162 Hay Street West Perth WA 6005 Australia
PO Box 1671 West Perth WA 6872 Australia
T (+61) (8) 9324 8800 F (+61) (8) 9324 8877 www.coffey.com/mining
20 May 2008
Managing Director
FerrAus Limited
Unit 5, Ground Floor
60 Hindmarsh Square
Adelaide SA 5000
Attention: Mr David Turvey
Dear Sir
ROBERTSON RANGE PROJECT
The updated Mineral Resource for the Northern and Southern Iron Deposit (collectively King Brown Iron
Deposit) of the Robertson Range Project inclusive of Stages 1 to 5 drilling is complete. The Mineral
Resource Statement as at 20 May, 2008 is tabulated below in Table 1.
The information in the report to which this statement is attached that relates to the Mineral Resource is
based on information compiled by David Slater and Alex Virisheff, who are Members of The
Australasian Institute of Mining and Metallurgy. David Slater and Alex Virisheff are employed by
Coffey Mining Pty Ltd.
Alex Virisheff and David Slater have 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 Mineral
Resources and Reserves”. David Slater and Alex Virisheff consent to the inclusion in the report of the
matters based on their information in the form and context in which it appears.
___________________ ___________________
Alex Virisheff David Slater
Principal Consultant – Resources Senior Consultant - Resources
Coffey Mining Coffey Mining
This document has been prepared for the exclusive use of FerrAus Limited (“Client”) on the basis of instructions, information and data
supplied by them. No warranty or guarantee, whether express or implied, is made by Coffey Mining with respect to the completeness or
accuracy of any aspect of this document and no party, other than the Client, is authorised to or should place any reliance whatsoever on
the whole or any part or parts of the document Coffey Mining does not undertake or accept any responsibility or liability in any way
whatsoever to any person or entity in respect of the whole or any part or parts of this document, or any errors in or omissions from it,
whether arising from negligence or any other basis in law whatsoever.
COFFEY MINING PTY LTD
Coffey Mining
20 May 2008
2
Table 1
Robertson Range Project
Northern and Southern Deposits - Combined
Grade Tonnage for Mineralised and Hardcap Horizons – 20 May 2008
Reported at a 55% Fe Lower Cutoff Grade
Classification
Tonnes Fe SiO2 Al2O3 P LOI CaFe CaO K2O MgO Mn Na2O† S TiO2
(Kt) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
Hardcap
Indicated 6,151 57.0 6.08 3.62 0.095 8.29 62.1 0.05 0.02 0.10 0.11 0.001 0.034 0.16
Inferred 478 55.9 6.75 3.02 0.126 7.96 60.7 0.05 0.04 0.07 0.22 0.001 0.014 0.09
Mineralised
Indicated 27,925 59.1 4.45 2.65 0.117 7.63 64.0 0.03 0.02 0.09 0.22 0.001 0.014 0.08
Inferred 5,393 59.3 5.26 2.55 0.098 6.55 63.5 0.03 0.02 0.10 0.23 0.001 0.015 0.07
Combined
Total Indicated 34,076 58.7 4.74 2.82 0.113 7.75 63.6 0.04 0.02 0.09 0.20 0.001 0.018 0.10
Total Inferred 5,871 59.1 5.38 2.59 0.100 6.66 63.3 0.03 0.02 0.10 0.23 0.001 0.015 0.07
Total Indicated
+ Inferred 39,947 58.8 4.83 2.79 0.111 7.59 63.6 0.04 0.02 0.09 0.21 0.001 0.017 0.09
†Sodium estimates are based on reduced sample dataset than iron and are indicative only.
COFFEY MINING PTY LTD
Coffey Mining
20 May 2008
3
Table 2:
Robertson Range Project
Northern and Southern Deposits - Combined
Grade Tonnage for Mineralised and Hardcap Horizons – 20 May 2008
Subdivided by Member
Reported Using No Lower Cuttoff Grade
Classification/
Member
Tonnes Fe SiO2 Al2O3 P LOI CaFe CaO K2O MgO Mn Na2O† S TiO2
(Kt) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
Indicated Mineral Resources
Hardcap
Lower West
Angela 735 57.0 6.21 2.60 0.085 8.39 62.2 0.04 0.02 0.08 0.17 0.001 0.022 0.10
Mt Newman 5,999 56.7 6.32 3.83 0.097 8.30 61.8 0.05 0.02 0.11 0.10 0.001 0.035 0.18
Mineralised
Lower West
Angela 3,035 57.6 4.66 2.88 0.116 8.78 63.2 0.04 0.04 0.11 0.61 0.001 0.015 0.10
Mt Newman 25,268 59.2 4.47 2.65 0.117 7.51 64.0 0.03 0.01 0.09 0.18 0.001 0.014 0.08
Inferred Mineral Resources
Hardcap
Lower West
Angela 172 55.7 4.49 2.50 0.137 7.28 60.1 0.03 0.07 0.09 0.21 0.001 0.009 0.09
Mt Newman 465 55.3 8.58 3.33 0.123 8.51 60.4 0.06 0.02 0.06 0.22 0.001 0.017 0.09
Mineralised
Lower West
Angela 171 57.3 4.75 3.12 0.101 8.48 62.6 0.03 0.03 0.11 0.35 0.001 0.011 0.12
Mt Newman 5,246 59.4 5.29 2.53 0.097 6.48 63.5 0.03 0.02 0.10 0.23 0.001 0.015 0.07
Combined Indicated and Inferred Mineral Resources
Lower West
Angela 4,114 57.4 4.93 2.82 0.111 8.63 62.8 0.04 0.04 0.11 0.50 0.001 0.016 0.10
Mt Newman 36,977 58.8 4.94 2.83 0.111 7.51 63.5 0.04 0.01 0.09 0.17 0.001 0.018 0.10
Lower West
Angela and Mt
Newman
41,091 58.6 4.94 2.83 0.111 7.62 63.5 0.04 0.02 0.09 0.21 0.001 0.018 0.10
COFFEY MINING PTY LTD
Coffey Mining
20 May 2008
4
• Drilling coverage is predominantly on 50m by 50m grid orientated east-west cross sections in the northern zone
of the deposit and 100m by 100m elsewhere. Some 354 reverse circulation (RC) and 25 diamond (DD)
drillholes have been completed by FerrAus intersecting the targeted Marra Mamba Iron Formation. The
additional drilling conducted constituted an additional 43 RC and 10 diamond holes. Further RC drilling has
been completed recently and further DD drilling is planned to establish and refine mineralisation extents, further
understand metallurgical characteristics and obtain additional insitu bulk density data.
• A nominal 55% iron (Fe) lower cutoff grade was broadly used in conjunction with geological features
(stratigraphy and structure) to outline the extent of iron mineralisation including within the hardcap horizon.
• Statistical analyses on samples and 2m composites were completed. Variography and search neighbourhood
analysis were also conducted as input into grade estimation.
• The method used to obtain grade estimates within hardcap and mineralised horizons was Ordinary Kriging.
• The dry insitu bulk density has been derived for the various horizons from the examination of 297 direct
diamond core measurements performed by AMMTEC and ALS laboratories and of geophysical downhole
density logs obtained from 84 drillholes. From this analysis, an average density of 2.72t/m3 w as assigned to
hardcap and 2.85t/m3 to mineralised horizon.
• Resource classification was developed from the confidence levels of key criteria including drilling methods,
geological understanding and interpretation, sampling, data density and location, grade estimation and quality.
• Sodium estimates are based on reduced sample datasets than iron and are only indicative.