Mutiny doubles Deflector size

21st May 2013 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Gold developer Mutiny Gold has more than doubled the footprint of its Deflector gold/copper deposit, in Western Australia, following recent exploration activities.

The ASX-listed company said that, in addition, favourable structural settings for Deflector clones have been identified near the Gearles Well intrusive. Mutiny said this significantly increased the potential of the Deflector project beyond the current exploration target range of between 1.65-million and three-million ounces.

“The success of the use of sub-audio magnetics technology at Deflector supports our belief in the prospectivity of the Deflector project and Corridor, which suggests it may become one of the most significant gold discoveries in Western Australia, in recent years,” said Mutiny MD John Greeve.

“The company’s exploration strategy has successfully delivered targets, aligning with Mutiny’s smart targeting approach and unlocking the exploration potential of the Gullewa tenements.”

The Deflector project currently has a 2.86-million-ton resource, grading 6.4 g/t gold for about 591 000 oz of contained gold, and 0.9% copper for 27 000 t of copper.

The Western Australian government in February approved the mining proposal for Deflector, securing the last of the key government approvals required before mining could start.

A definitive feasibility study has indicated a A$223-million profit with an initial production rate of 65 000 oz of gold, with a forecast average operating cash cost of $618/oz and an initial mine life of seven-and-a half years.