Atlas Iron doubles Corunna Downs estimate

THE DRILL SERGEANT: Atlas Iron (ASX: AGO) has doubled the JORC Code-compliant resource estimate at the company’s Corunna Downs project in Western Australia.

The resource currently stands at 51 million tonnes at 57.3 per cent iron, which the company said is on track to meet its exploration target of 100 to 150 million tonnes at 55 to 58 per cent iron by June 2015.

The increase is due to maiden Inferred Resources for the Runway, Shark Gully and Razorback deposits, which have added a combined total of 26 million tonnes at 57.5 per cent iron.

 

Corunna Downs and McPhee Creek projects showing resource
locations, prospective stratigraphy, surface iron enrichment, Atlas
tenements and proposed infrastructure. Source: Company announcement

Atlas indicated it intends drilling its tenure from Corunna Downs to McPhee Creek, including Corunna South and Hales Grave later this year as it believes there is strong potential to grow the combined Corunna-McPhee Creek resource base, further underpinning its strategy to develop a blending hub in this region.

At Corunna Downs, each of the Runway, Shark Gully and Razorback resources remains open along strike and extensional RC drilling is now being completed to define the ultimate dimensions and size of each deposit.

Diamond drilling is underway on the Runway deposit, to be followed immediately by Shark Gully and infill RC programs have been planned for early 2015 to upgrade confidence in these resources.

Of the total Direct Shipping Ore Mineral Resource at Corunna Downs, 20 million tonnes (or 40 per cent), is in the Indicated category.

“In less than a year, the Corunna Downs project has moved from a new discovery to substantial Indicated and Inferred Mineral Resources of high quality,” Atlas Iron managing director Ken Brinsden said in the company’s announcement to the Australian Securities Exchange.

“This result demonstrates that the North Pilbara remains a favourable location for iron ore exploration and Atlas’ continued exploration success here is building a broad pipeline of potential opportunities for the company to maintain and grow its Reserve base.”

Email: atlas@atlasiron.com.au

Website: www.atlasiron.com.au