Atlas Iron has increased the iron ore reserves at its northern Pilbara projects by 50% up to 53.7 million tonnes.
The company said the increase would allow it to increase its planned production rate from six million tonnes per annum to 12 million tonnes per annum by the end of 2012.
The northern Pilbara projects comprise the Pardoo, Wodgina, Abydos and Mt Webber operations, which have an average iron grade of 57.7%.
The total reserve figure includes the maiden result for the Mt Webber project, which stands at 19.1 million tonnes at a grade of 57.6%.
“This latest reserve upgrade is an extremely strong result which will underpin Atlas’ next phase of growth from six million tonnes per annum,” managing director David Flanagan said.
“It is pivotal to our overall objective of increasing mine life, production, sales and shareholder returns.”
The maiden Mt Webber result represents a more than 97% conversion of the indicated resource at Ibanez.
The company is planning to complete infill drilling at the other iron deposits at Mt Webber during the remainder of this year and expects to announce a resource and a reserve upgrade in the fourth quarter.
Reserve conversion is also underway at the Wodgina project, in particular at the Avro Resource, where further reserve extensions are expected in the near term.
The company aims to complete infill drilling at Wodgina in the current quarter and expects to announce an upgrade in the fourth quarter.
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