The goal of the present work was to report and investigate the performances of a new iterative reconstruction algorithm, using a model observer. For that, a dedicated low-contrast phantom containing different targets was scanned at four volume computed tomography dose index (CTDIvol) levels on a Siemens SOMATOM Force computed tomography (CT). The acquired images were reconstructed using the ADMIRE algorithm and were then assessed by three human observers who performed alternative forced choice experiments. Next, a channelised hotelling observer model was applied on the same set of images. The comparison between the two was performed using the percentage correct as a figure of merit. The results indicated a strong agreement between human and model observer as well as an improvement in the low-contrast detection when switching from an ADMIRE strength of 1-3. Good results were also observed even in situations where the target was hard to detect, suggesting that patient dose could be further reduced and optimised.