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: Deflector gold drilling program expanded, timeline for DFS defined
Mutiny Gold (ASX: MYG) remains focused at the Deflector deposit, where the company has an extensive drilling campaign underway to increase the gold resource.
The current timeline of events is that the first results from the campaign started in December are due within weeks. The first Reserves from the project are also expected very soon.
The infill program will then wrap up towards the end of February, with results which would be expected around April, to then be included in the highly anticipated Definitive Feasibility Study to be released to the market around mid-2012.
Extension drilling will continue over February and March, with results then expected to flow to the market from late April and into May.
The reason this study has taken longer than planned is due to being expanded to support production in the order of 100,000 to 120,000 gold ounces annually when fully ramped up, compared to the initially considered 50,000 ounces.
Investors will be aware that Mutiny has already created some major inroads in moving Deflector to production, including moving to full ownership of the Gullewa Gold Project (which hosts deflector), while also acquiring the 10% Net Profit Interest Royalty for 40 million shares, which are escrowed until 15 March 2013.
Expanded drilling program
The drilling program which kicked off towards the end of 2011 was initially going to comprise 12,000 metres of diamond and reverse circulation drilling targeting infill and extensions, but this has now been extended by a further 3,000 meters with two short programs of verification drilling.
This drilling addresses two separate areas of the current resource estimate with the view of providing additional support to the Definitive Feasibility Study. Currently there is one diamond rig and one reverse circulation rig active full time at the deposit.
Deflector - by the numbers, reserves in early 2012
Deflector has a resource of 3.4 million tonnes at 4.9g/t gold for 530,000 gold ounces, 0.85% copper for 29,000 tonnes and 5.7g/t silver for 620,000 ounces.
Measured and Indicated accounts 2.1 million tonnes at 5.2g/t gold for 350,000 ounces, 1.1% copper for 22,000 tonnes and 7.3g/t silver for 490,000 ounces. Inferred is 1.3 million tonnes at 4.5g/t gold for 180,000 ounces, 0.5% copper for 6,000 tonnes and 6.2g/t silver for 130,000 ounces.
Future drill programs target 2 million gold ounce operation
To continue to progress Deflector, Mutiny has already formulated drill programs for 2012 and onwards, which is both aimed at increasing the mine life and gold ounces - with the target 1.6 million to 2.4 million ounces of gold.
