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 eyes full ownership of Gullewa Gold Project and Deflector 'in near future'
Mutiny Gold (ASX: MYG) continued drilling program at the Gullewa Gold Project and Deflector Deposit has already yielded the company some world class drill results during 2011, such as 3.6 metres at 153 grams per tonne g/t gold and 13.3% copper.
Mutiny has now moved to a 70% interest in the project, by making a payment of A$2 million to ATW Gold Corp Australia Pty Ltd, under the Gullewa Project Acquisition Agreement.
Importantly - Mutiny has previously advised ATW Gold Corp that the company intends to move to 100% ownership in the near future, which would be done with a final payment of A$4 million.
Mutiny is currently working with ATW Gold Corp to transfer the titles of the tenements to Mutiny, and arranging the replacement bonds.
Deflector - the next step
Mutiny is continuing work on a Feasibility Study, with the company having engaged GR Engineering Services to head up the mechanical engineering and plant design works.
Xstract Group is conducting the mine studies and Mutiny’s in-house project manager and metallurgist, Kevin Reynolds is managing the Feasibility Study process as well as overseeing the metallurgical test work, with the study expected to be completed in early 2012.
Earlier this year Mutiny delivered a bumper Scoping Study, which included an IRR of 83%, a NPV of $187 million – which is likely to increase significantly, and cash costs over a ten year life of mine of just A$524 an ounce.
Deflector - by the numbers
Deflector currently hosts a resource of Measured 130,000 gold ounces and 12,000 tonnes of copper, and Indicated 105,000 gold ounces and 4,500 tonnes of copper.
The deposit contains a total resource of; 3.4 million tonnes at 5.4g/t gold, 4.7g/t silver and 0.8% copper for 590,000 gold ounces, 510,000 silver ounces and 25,500 tonnes of copper.
Mutiny has an exploration target of between 1.65 million to 2.5 million gold ounces.
Mutiny has said that the company has resolved to expand the scope of the Feasibility Studies to incorporate a re-assessment of Deflector, which is now expected to support production in the order of 100,000 to 120,000 gold ounces annually when fully ramped up.
The reason is exploration has uncovered high grade intercepts in multiple locations, which predicate likely extensions to the planned open pit.
