Drilling at Atlas Iron’s Abydos Project, 100km south of Port Hedland in the Pilbara region of Western Australia, continues to improve confidence in existing resources and indicate potential for further increases.

Atlas completed a second campaign of RC drilling at Abydos late last year for a total of 64 drill holes for 3751 metres. The program comprised first pass testing of Mettams Prospect as well as infill and step out drilling at Trigg and Mullaloo.

Mineralization at Trigg, which has an Inferred resource of 8.6 million tonnes at 57.5% iron, remains robust, open to the west and at depth.

Mettams has not been drilled previously and now ranks as the company’s fourth discovery at Abydos since drilling started last July. Results intercepted validate the company’s exploration techniques and provide additional targets for drilling later in the year.

Atlas Iron’s managing director David Flanagan says: “Clearly we have great projects and a team that delivers. We look forward to more good results as we move from explorer to producer in 2008.”

The company has targeted 15 to 20 million tonnes of resources across the Abydos Project to underpin a 3 million tonnes per annum direct shipping grade (DSO) operation by late 2009.

Given the early indications on prospectivity, the close proximity to road, rail, port and existing BHP Billiton deposits aggressive exploration will continue at this project.

Atlas is progressing Abydos to the Pre Feasibility Study phase, due for completion by July 2008.

The company is also working to complete environmental approvals and begin shipping of DSO iron ore from its Pardoo Project by October 2008. The company is targeting export of 1 million tonnes during the first 12 months of operations with production growing to 3 million tonnes per annum by 2010. Together with the development of the Abydos project, the company is targeting an ultimate production of 6 million tonnes per annum of DSO before 2012.

www.atlastiron.com.au