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.
Mutiny Gold (ASX: MYG) has discovered additional high grade near surface gold at the Deflector Gold Deposit in Western Australia, which importantly delivers another positive for the economics of the ongoing Definitive Feasibility Study.
The impact of the new gold intersections is that they extend the defined high-grade mineralisation 100 metres to the north of the current Measured and Indicated Resources within the Central Lode of Deflector.
The latest highlights from the first seven reverse circulation holes include (from the Central Lode):
- 11 metres at 14.40 grams per tonne (g/t) gold and 0.2% copper from 54 metres;
- 4 metres at 10.23g/t gold and 0.3% copper from 75 metres; and
- 6 metres at 4.45g/t gold and 0.2% copper from 40 metres.
Deflector extension drill results – underground down dip
Deeper diamond drilling was carried out to extend underground resources to the south of the main known area of mineralisation at the Deflector Deposit.
Central Lode intersections down dip of the existing Deflector resources include:
- 2 metres at 21.35g/t gold and 1.06% copper from 193 metres; and
- 2 metres at 9.64g/t gold and 1.10% copper from 209 metres.
Milestone news flow to increase
Astute investors will be aware that the news flow for Mutiny is about to ramp up in the short term, with more drilling results to be received from a step out program in the following weeks, along with surface and down dip extensions of the more copper-rich West lode.
Not to be forgotten - just last month Mutiny announced some bonanza gold results and very high grade copper, including; 3.3 metres at 79g/t gold and 10.5% copper from 62 metres; and 2 metres at 24g/t gold and 2.4% copper from 234 metres.
On the milestone news front, a maiden reserve is pencilled in for May, with the Definitive Feasibility Study in the first half of 2012, along with the completion of project financing around mid-2012.
The first gold pour to be from White Well will be in the second half of 2012, with the mine development at Deflector in late 2012.
John Greeve discusses the latest gold discovers
John Greeve, managing director, commented on the new gold discoveries and said that the results continue to extend the known length of mineralisation of the Central Load and indicate the open pit mine life.
"Hence, the overall project economics of the Deflector project appear to be extending in line with robust forecasts of the Scoping Study and the company’s resource expansion program.
"The mining team is impressed with the grade and width of the gold interceptions which are over 100 metres to the north of the current Central Load open pit mine design.
“It has been a heavy work load for our team given they were asked to drill through Christmas and then extend the program as we received early indications that the drill program was achieving the target results and would be a boost to an already very strong project."
Deflector - by the numbers, reserves in 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 for; 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.
Existing infrastructure provides key production component
Mutiny is a near term gold producer, and to further highlight the potential of Deflector, existing infrastructure includes a 300,000 tonnes per annum mill which has the capacity to be upgraded to 620,000 tonnes per annum - along with accommodation and offices, power plant, water, haul roads and tailings dam.
The additional infrastructure required includes a ball mill, crusher, floatation circuit, additional accommodation for up to 150 and an upgraded power plant.
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