New WA iron ore discovery for FerrAus

  FerrAus Limited has made a new discovery of iron mineralisation at the Gwardar prospect, located within the company’s Davidson Creek iron ore project in the East Pilbara region of Western Australia.The potential resource at the Gwardar discovery is 30 million tonnes, with the iron mineralisation approximately 800m long by 250m wide by 30m thick. The mineralisation remains open both along strike and down dip. FerrAus Managing Director, David Turvey said: “This new discovery further confirms the excellent potential of our licences and the success of gravity surveys in identifying mineralised iron ore targets. This is the first of 13 gravity targets that we may test this year.”Iron mineralisation drill tested at the Gwardar prospect to date occurs near surface in a shallow dipping sheet-like deposit that would be amenable to low-cost, open pit mining.FerrAus has scheduled detailed infill RC drilling at the Gwardar prospect during mid-2008, followed by an initial resource estimate. FerrAus has applied for a mining license (M52/1043) and intends to “fast track” the evaluation and development of iron ore resources in the Davidson Creek project. Overall at the Davidson Creek project, systematic exploration of existing prospects and targets has the combined potential to increase FerrAus’ 100% owned direct shipping resource base to over 100 million tonnes grading 57 to 60% Fe during 2008. Along with its Robertson Range iron ore project, FerrAus believes it is well placed to ultimately grow the resource base at its East Pilbara iron ore projects to 250 million tonnes.