FerrAus Limited (ASX:FRS) Recent Drilling Results Increases Resources By 66% to 276.9 Million Tonnes

Perth, Mar 4, 2010 AEST (ABN Newswire) - FerrAus Limited (ASX:FRS) (PINK:FRRAF) announces that recent drilling results have lifted the total resources at the FerrAus Pilbara Project to 276.9 million tonnes.

Following intensive RC drilling, during the latter part of 2009 and early 2010, evaluation of the outstanding results has delivered a significant increase of 66 per cent or 110.3 million tonnes on its existing resource base.

Maiden resources have now been determined for the Mirrin Mirrin and Dugite Prospects, along with resource upgrades for the Tiger Prospect (within the Davidson Creek Area) and King Brown Prospect (within the Robertson Range Area).

In addition to the resource upgrades and new resources for the FerrAus Pilbara Project, another exciting development is the preliminary metallurgical results on the beneficiation opportunities for medium grade iron mineralisation previously not included in the FerrAus resource inventory.

Managing Director, Mike Amundsen, said; "FerrAus Limited is targeting more than 300 million tonnes of iron ore resource by the end of 2010 and we have many untested targets on the FerrAus tenements.

"It is very exciting to be able to confirm that FerrAus is working with world class deposits that will underpin a competitive production rate necessary to support long life infrastructure.

"This upgraded resource will be used in the Pre-Feasibility Study (PFS) and Feasibility Study scheduled for completion this year.

"With much of the medium grade ore positioned above the high grade ore, the PFS will examine the likely significant improvement in the overall strip ratio of mining operations. Most of the medium grade material will be mined in any event. This medium grade ore was not considered as a resource in the recently announced scoping study," he said.

Mirrin Mirrin

Following the announced discovery of iron mineralisation at the Mirrin Mirrin Prospect during January 2010 (ASX announcement dated 18 January 2010), Mineral Resource modelling by Snowden Mining Industry Consultants has defined a maiden Inferred Resource of 14.5 million tonnes @ 58.7% Fe. This is included in the Davidson Creek +55% Fe Inferred Resource figures in the above table.

The mineralisation at Mirrin Mirrin remains open along strike and at depth. To date approximately one third of this mineralisation trend has been tested. Not included in the maiden resource and of particular interest is south trending detrital mineralisation within a palaeo-channel heading away from the zones of primary insitu mineralisation.

Medium Grade Resources

Medium grade resources (50-55% Fe) are located adjacent to and overlying existing modelled higher grade (+55% Fe) resources.

Total medium grade Inferred Resources for FerrAus Pilbara Projects identified to date are 85.6 million tonnes @ 53.1% Fe based on work completed by Snowden Mining Industry Consultants.

Recent preliminary metallurgical results from beneficiation test work indicate that medium grade ore (50 to 55% Fe) is a valuable addition to the resource base.

A range of beneficiation techniques using conventional technologies and methods were trialled. All beneficiation techniques tested generating products with iron contents higher than the initial head grade. Product recoveries were high, ranging from 63 to 82 per cent.

Infrastructure Access

Recent announcements from many of the significant junior iron ore developers underline the important role each will play, either individually or collectively, in changing the face of iron ore production in Western Australia.

"The North West Iron Ore Alliance, of which FerrAus is a founding member, has sought authorisation from the ACCC for its members to negotiate jointly with Pilbara infrastructure providers for rail track and/or rail haulage services. We welcome the Western Australian State Treasury support for authorisation and also BHP Billiton's submission that it does not object to authorisation being granted," Mr Amundsen said.

"Further we welcome the Federal Government's proposed amendments to Part IIIA of the Trade Practices Act to streamline access to infrastructure by making Part IIIA more cost efficient, quicker and more transparent.

"Access will ultimately increase the volume and diversity of supply of iron ore exports from Australia, enhance government revenues and ensure the future of junior iron ore developers. This can only be good for Western Australia and the nation as a whole.

"The role of both State and Federal governments in facilitating effective access through these and other processes is crucial. Effective and timely access to rail infrastructure is of vital interest to this company's shareholders, employees and nearby indigenous communities.

"FerrAus remains committed to equitable and fair infrastructure access for junior iron ore developers in the Pilbara," he said.

For the complete FerrAus Limited ASX Announcement, please click the link below:

http://www.abnnewswire.net/media/en/docs/62391-ASX-FRS-482671.pdf

Contact

Investor / Media Contact: Gareth Widger Mob: +61-4-1991-8272