JOHANNESBURG (miningweekly.com) – Perth-based Mutiny Gold has confirmed five new gold mineralisation zones within its White Well project area, in Western Australia.
White Well has a resource estimate of 113 000 oz gold, however, Mutiny believed that this could be enhanced by the extensions of the regional mineralsing shear zones, such as those uncovered in the Bounty Zone, adjacent to the White Well project.
In February, Mutiny’s initial scoping study reported that, based on preliminary modelling and sensitivity analysis estimates, a net cash flow of A$22-million, at a gold price of A$1 300/oz, or A$34-million at A$1 450/oz, or A$47-million at A$1 600/oz could be achieved at White Well.
Required capital for the project was also likely to be around A$10-million.
“The scoping study also confirmed that the White Well project could start production within 12 months,” the company said in a statement.
“While preparation for the feasibility of the White Well mine is under way, the company understands it is extremely important that it continues with development of the resource,” said Mutiny MD John Greeve.
Greeve added that the current resource project was expected to increase in line with the aggressive exploration activities being undertaken throughout the entire area.
“The confirmation of these new mineralisation zones is recognition of this resource development strategy.”