Atlas Iron will continue exploration and economic assessment of its Abydos iron ore project in Western Australia"s Pilbara region after promising drilling results from the Trigg Deposit.

Results show an initial JORC-compliant inferred resource of 8.6 million tonnes at 57.5% iron. It is a virgin discovery of the Trigg Deposit on the previously untested mineralised Lalla Rookh Trend.

Atlas managing director David Flanagan says it clearly demonstrates strong potential for the company's remaining 6000sqkm Pilbara landholding to produce similar or better iron ore deposits.

"New entrants to the industry have an important role to play in making discoveries and contributing to the development of regional WA. This is the result of a great effort over a very short time and the whole team is to be congratulated."

Atlas has not yet reported reserves for the Abydos project and while it is not certain that the company will define commercial iron ore deposits the company considers the results further exploration and assessment.

Delineation of the Trigg Deposit occurred during completion of an initial RC drilling program during August to September 2007. This program was designed to test and delineate bedded iron (BID), supergene, goethite-hematite mineralization at two target areas on both the Lalla Rookh and Pincunah Trends.

Further exploration drilling is planned at Abydos before the end of the year. Drilling will include infill and extension drilling at Trigg which remains open along strike to the south-west and at depth. Drilling at Trigg has only been to a vertical depth of 85 metres from surface.

Atlas Iron is working to complete environmental approvals and begin shipping of direct shipping grade (DSO) iron ore from its Pardoo Project by October 2008. The company is targeting export of 1 million tonnes of DSO iron ore 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 6mtpa of DSO before 2012.

www.atlasiron.com.au