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FerrAus Limited (ASX:FRS) Mirrin Mirrin Iron Ore Project Indicated Resources Up 75 Per Cent.

Perth, Australia, Mar 8, 2011 - (ABN Newswire) - FerrAus Limited (ASX:FRS) (PINK:FRRAF) today announced that metallurgical test work has led to the reclassification of its 50 per cent Fe to 55 per cent Fe Inferred Resource material. This has resulted in a reclassification of some of the iron ore resources from (JORC) Inferred Resources to Indicated Resources and as a consequence, boosting the overall confidence in the resource base for mine plan studies.

The resource reclassification was provided by Snowden Mining Industry Consultants (Snowden) following the results of metallurgical test work conducted in 2010 as part of the Pre Feasibility Study.

Previously, Snowden had classified the medium grade material, which was defined as mineralisation between 50 per cent Fe and 55 per cent Fe, as an Inferred Resource due to the preliminary nature of metallurgical test work demonstrating the ability to beneficiate the medium grade material into a saleable product.

The completion of additional infill RC drilling at Mirrin Mirrin Prospect has provided outstanding results that have exceeded expectations. The results delivered an 89 per cent conversion of the +55 per cent Fe primary and hardcap mineralisation from Inferred Resources to Indicated Resources.

Executive Director, Bryan Oliver, considers that the reclassification, coupled with the new Mirrin Mirrin infill drilling results, support the robust nature of the FerrAus Pilbara Project.

"Setting an accurate foundation for classification of the ore is vital and the completion of these two milestones is a big plus for the viability of the Project.

"It has the effect of fully utilising the available resource and ensuring that we maximise the amount of saleable material available, particularly as we move further into the Definitive Feasibility Study process.

"At this stage we remain on target to complete the DFS by the end of this year," he said.

The metallurgical test work was undertaken on drill core collected between January and August 2010 at both Davidson Creek and Robertson Range. This test work included simulated drill and blast, crushing, dry screening, wet screening, desliming and gravity separation.

Final analysis shows that material in the 52 per cent Fe to 55 per cent Fe range at Davidson Creek and the 53 per cent Fe to 55 per cent Fe range at Robertson Range can be upgraded and that the beneficiated product has a comparable value to similar iron ore products currently shipped from the Pilbara Region.

As a result, Snowden has revised the Mineral Resource classification (2004 JORC Code) of the Medium Grade based on the cut off grades provided by FerrAus. Material between 50 per cent Fe and 52 per cent Fe at Davidson Creek, and between 50 per cent Fe and 53 per cent Fe at Robertson Range has been designated as Low Grade and remains classified as an Inferred Resource. It should be noted that the figures for the High Grade Resource (+55 per cent Fe) have not changed, for Robertson Range and Davidson Creek.

Mirrin Mirrin Resource Upgrade

Following the completion of infill RC drilling, along with support PQ3 twin core hole drilling, Mirrin Mirrin Prospect has continued to deliver outstanding results.

A total of 84 infill RC drill holes (for 12,515 metres ) were undertaken to achieve a drill hole spacing of 100 metres by 50 metres; a drill hole density designed to give confidence for resource estimation purposes.

Drilling highlights from the infill program are presented in Table 1, with a number of outstanding intercepts forming the basis of a robust resource. A best assay result was received from hole DCRC1051, which includes 72 metres at 60.71 per cent Fe, from 106 metres to 178 metres.

Mirrin Mirrin Prospect as an exploration target is still open along strike.

During January 2011, Snowden Mining Industry Consultants completed a resource update on the Mirrin Mirrin iron ore deposit. The Mineral Resource was classified and finalised during February in accordance with the 2004 JORC Code.

Results of the resource update exceeded expectations, with an 89 per cent conversion of the +55% Fe primary and hardcap mineralisation converting to Indicated Resources from Inferred Resources.

Importantly, despite a nominal increase in overall iron resource tonnes from the Mirrin Mirrin resource update, there has been a major increase in the Project's overall Indicated Resources; from 112.3 million tonnes to 197.6 million Indicated Resources - a 75 per cent increase.

These results will be incorporated into the initial Definitive Feasibility Study work. The information provides strong support for the estimated life of mine production of 227 million tonnes (wet) used in the Pre Feasibility Study financial viability assessment.

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

http://www.abnnewswire.net/media/en/docs/532466.pdf

About Ferraus Limited:

FerrAus Limited (ASX: FRS) is a junior exploration company based in Australia with its focus on the discovery and production of ferrous raw materials, including iron ore, manganese, and nickel. The company has four exploration licences located in the East Pilbara region of Western Australia with excellent potential for iron ore and manganese deposits.

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Publication:ABN Newswire
Geographic Code:8AUST
Date:Mar 8, 2011
Words:852
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