You are right my friend. After rescanning the article I read months ago, I realize that it does not actually extract iron from the water. It removes pretty much all other trace metals, my bad.
"What else does iron oxide hydroxide bind? Metals
These materials are known to bind a wide range of other compounds from water, including trace metals, arsenic, selenium,2 silicate, and organics. Metals such as manganese, cobalt, nickel, and zinc are known to bind to iron oxide hydroxide in simulated seawater solutions.4,5 It has also been claimed that the binding of copper and zinc by natural iron oxide hydroxide sediments exerts a powerful control on the concentration of copper and zinc in polluted rivers and estuaries.6 Although not studied in seawater, it has also been observed that phosphate binding by iron oxide hydroxide actually increases its binding of copper, cadmium, and nickel in freshwater.7 " quote from Randy's article.
Apparently the iron in GFO is ferric though, not ferrous. All that I know about the iron situation is that an excess of it has been directly linked to hair algae. Perhaps this is the ferrous iron? Beyond that subject, I do like GFO and I thought the lighting situation could have something to do with it. Didn't hear anyone else bring that subject up yet.