www.mutinygold.com.au
Mutiny Gold (ASX: MYG) is a diversified resource company focused on the exploration and development of the company's gold, copper and nickel tenements in Western Australia.
Mutiny’s main focus is the Deflector gold copper deposit which is located within the Gullewa project where gold production is forecast from 2012.
Mutiny Gold to move to 100% ownership of 590,000 gold ounce Gullewa
Mutiny Gold (ASX: MYG) has timed the full ownership of the Gullewa Gold and Copper Project in Western Australia perfectly as the gold price sits at record highs above US$1520 an ounce, with the copper price near all time highs.
Mutiny will raise A$8 million through an equity placement to predominately institutional investors to help fund the investment.
Deflector contains total Mineral Resources of; 3.4 million tonnes at 5.4 grams per tonne (g/t) gold and 0.8% copper for 590,000 gold ounces and 25,500 tonnes of copper.
What is most important about the resource is the significant gold and copper in the higher confidence categories of Measured and Indicated, including 235,000 gold ounces and 16,500 tonnes of copper.
Boosting the potential of Deflector is the deposit remains open in all directions.
Under the Gullewa farm-in agreement between Mutiny and Redhill Resources Corp, Mutiny is committed to pay $9 million by instalments to earn 70% ownership and has the right to acquire the remaining 30% by paying an additional $4 million.
Redhill will retain the right to 10% of net profit after capital payback.
To date Mutiny has made payments totalling $3 million.
John Greeve, managing director of Mutiny, said "Mutiny’s Scoping Study for the Deflector Deposit, within the Gullewa Tenements, and recent drilling results, make Gullewa a compelling acquisition.
"Importantly, the Deflector Scoping Study has confirmed the very low forecast production costs, making this project a launch pad for a significant mining house."
Mutiny is targeting; 1.65 to 2.5 million gold ounces and 40,000 to 80,000 tonnes of copper at Deflector.
