FerrAus Limited (ASX:FRS) Recent Infill Drilling Results Support Pre Feasibility Study (PFS)

Perth, May 24, 2010 AEST (ABN Newswire) - FerrAus Limited (ASX:FRS) (PINK:FRRAF) is pleased to announce the results from recent infill RC drilling at the Davidson Creek Area, undertaken to support the ongoing Pre Feasibility Study (PFS).

A total of 18,648 metres in 180 drill holes were completed during a program that commenced in January and was completed in April, 2010.

The bulk of the drilling comprised 100 metre infill lines to the existing 200 metre drill line spacing. The drill line density covering this part of the Davidson Creek Area now stands at 100 metres by 50 metres, which is required before consideration can be given to a resource upgrade higher than an Inferred Category level.

These results will form the foundation of a new resource model for this Area.

A number of the RC infill drilling results, where a cut-off at greater than 55% Fe content is used, show intersections of more than 50 metres. The best drill hole result was a 92 metre intersection at 59.93% Fe content.

Following the compilation of these results, Snowden Mining Industry Consultants has been commissioned to complete a new resource estimate.

Also, a series of PQ metallurgical core drill holes, which are a vital part of the PFS process, have been completed and the results from this drilling are expected in the near future.

FerrAus Limited Chief Executive Officer, Mike Amundsen, said that the PFS was on track to be completed in the third quarter of the 2010 calendar year.

"These results will contribute data for the upgrade of resources to an indicated category required for the PFS.

"Within the next month we are also expecting to receive results from additional drilling at the Mirrin Mirrin Prospect.

"FerrAus is well advanced with its project studies. The metallurgical test work in progress will provide key ore properties for mine planning and process plant design as well as assessing the specifications for a marketable product," he said.

For the complete FerrAus announcement including figures and tables, please view the following link:

http://www.abnnewswire.net/media/en/docs/62919-ASX-FRS-492060.pdf

Contact

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