At Mt Webber, 150km south-southeast of Port Hedland, Atlas has acquired 70% of the iron ore rights from Haddington Resources. Extensive surface iron enrichment was mapped within a 2.5km by 2.5km area, and initial rock chip traverses included results such as 166m at 62% Fe, 302m at 59% Fe and 656m at 58% Fe.

Drill testing of the first Mt Webber bedded DSO targets commenced in May 2009. RC drilling was immediately successful in discovering ore-grade enrichment, with the first significant intersections returning up to 66 metres at 58.5% Fe from surface. The Company has now defined an inferred resource of 43.7 million tonnes at 57.4%Fe, which exceeds the previous exploration target for the project of 30 to 40 million tonnes. Exploration is ongoing over other prospects in the area.

Atlas intends to convert this inferred resource to indicated category with infill RC resource definition drilling, and diamond drilling to determine bulk densities and metallurgical characteristics. This work is expected to commence shortly.

In October 2009 Haddington Resources opted to exercise their clawback right to Mt Webber, by which they will regain 30% ownership in the project after paying Atlas four times its exploration expenditure for the work done to date. Once this process is complete Mt Webber will be operated as a Joint Venture, with costs shared on a 70:30 basis between Atlas and Haddington.

Mt Webber has potential to be developed either as a stand-alone operation, or as a satellite mine delivering run-of-mine ore to a central processing facility at Wodgina. Mt Webber is approximately 40km east of the FMG railway line and immediately north of the Woodstock Road, which connects Marble Bar to the Great Northern Highway.

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