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That is correct. There are alot of places in Mordor like The Black Gate, Barad'dur, Mount Doom, Minas Morgul, Shelob's Lair, Crith Ungol, etc. Plus There are the plains inbetween places. Where they said we can ride across.
I would imagine the Mordor in this game will be the size of Skyrim probably.
"There is good in this world, Mr.Frodo.....and it's all worth fighting for." Samwise Gamgee in Lord of the Rings: The Two Towers
Considering the many comparisons to Assassin's Creed 2 and Batman: Arkham City I would expect that kind of experience from this game. Meaning, you will be able to free-roam a small part of a much larger world like Italy and Gotham City respectively.
Knowing this is being published by WB, assuming it's successful, it is possible that the "Middle-Earth" name could become a brother franchise to the Arkham games. Without a doubt I expect the supposed sequels to have you free-roaming Gondor, Rohan, and maybe the Misty Mountains and Mirkwood as the rangers story takes him north. Remember that they have a 60 year timeline to play with here so anything is possible.