The Wodgina DSO Project is located approximately 90km south of Port Hedland on the Great Northern Highway. Atlas holds 100% of the iron ore rights to the project area, acquired from Talison Minerals Pty Ltd in February 2008. This exciting and highly prospective project has been the main focus of Atlas' exploration and resource development activities since drilling commenced in November 2008, and Wodgina is now scheduled to be the Company's next mining operation, with production commencing in January 2010.

Atlas' DSO deposits and exploration prospects at Wodgina are located within the Wodgina Greenstone Belt, centred on Talison's Wodgina Tantalum mine - the world's largest single tantalum resource. Bedded iron enrichment is situated along the range of hills which mark the Wodgina anticline. Iron ore is commonly outcropping, with enrichment depths in excess of 60m.

The pace of exploration at Wodgina has been frenetic since drilling commenced. The first RC programme was successful in discovering the Anson deposit, for which a maiden resource was announced in January 2009. This was quickly followed by additional discoveries extending Anson to the north and west, and subsequent discoveries between Anson and Talison's open pit operations which accounted for over 40 million tonnes of resource inventory by May 2009. Atlas has now completed over 60,000m of RC and diamond drilling at Wodgina. The rapid rate of exploration success led to a re-evaluation of development priorities by the Company, and a decision was made to fast-track development at Wodgina as the logical next step in Atlas' expansion plans.

The decision to fast-track Wodgina was made easier by a landmark agreement between Atlas and Talison, granting the Company access to Talison's unused mine infrastructure following Tallison's decision to place the tantalum operation into care and maintenance. This agreement, announced in February 2009, includes crushing and screening plant capable of processing up to 6 million tonnes of iron ore per year, as well as a 10MW gas-fired power plant, a high-quality 300-person accommodation camp and associated mine administration facilities. Having this infrastructure in place, in such close proximity to the newly discovered DSO resources, is expected to save Atlas many millions of dollars in capital expenditure which would otherwise be required prior to the commencement of production.

In the future Wodgina may become increasingly important to Atlas as a potential central processing hub for ore mined at Abydos and Mt Webber.

Production at Wodgina is due to commence in January 2010 at the rate of 2Mtpa, with initial mining from the Anson deposit (see fig 1 below). The mine will produce a quality, low-alumina fines-only product, which will be trucked to the nearby port at Port Hedland for export.

Wodgina remains a highly prospective exploration target for Atlas, with follow-up drilling to be completed south of the Wodgina area, and reconnaissance drilling on additional targets at Wodgina North. Atlas is confident that these targets have an excellent likelihood of increasing the current resource portfolio.

Please click to view enlarged version of above map.

Figure 1: Resource locations and schematic pit outline, Wodgina.