Mutiny Gold Ltd listed on the Australian Stock Exchange in
July 2006. In 2010, Mutiny achieved a company-changing event
when it entered into an agreement to acquire the Gullewa tenements
in the south Murchison region of Western Australia. At the time,
Mutiny was confident it could ramp up the resources at Gullewa
with a focus on the Deflector gold copper deposit.
Jump forward two years to 2012, and Mutiny has kept true to
its word. In July it reported findings from a bankable feasibility
study which confirmed Deflector to be a highly profitable, low cost,
premium gold copper project. Deflector boasts a low average cash
cost of $617 per ounce of gold equivalent.
“
Deflector is our flagship project and we worked very hard to
get the bankable feasibility study out,” Mr Greeve said. “It makes
the whole project eminently bankable and it shows that it is a very
robust, premium project with a lot of upside.”
The bankable feasibility study was based on an initial mine life of
seven years commencing with a two year open pit, followed by five
years of underground operation. Mining at Deflector is expected to
begin early next year, with gold production tipped for October 2013.
In August 2012, the company delivered an updated JORC
compliant resource for Deflector of 729,000 ounces of gold
equivalent. What is significant about this upgrade is that it
represents a 10% increase in gold ounces and a 26% increase in
average gold grades, compared to the previous resource model used
in the bankable feasibility study.
“
The key impact on the Deflector project is likely to be an
increased head grade, due to fewer tonnes mined at a higher grade,”
said Mr Greeve.
The upgrade is just the tip of the iceberg for Mutiny. The
company is targeting a Deflector resource in the order of 9 to 14
million tonnes at 4-8 g/t Au and 40,000 to 80,000 tonnes of copper.
To meet this target, Mutiny has begun planning an aggressive
exploration program targeting extensions of Deflector along
strike and at depth, as well as assessing anomalies within the
Deflector corridor.
“
There are huge opportunities to expand Deflector as it remains
open to the north and certainly at depth,” Mr Greeve said.
“
There are also a lot of opportunities within the Gullewa
tenements. The package contains five partially mined open pits,
areas of historical underground workings and numerous untested
soil geochemistry, gravity and aeromagnetic anomalies. We are
looking to bring some historically mined areas into the current
Deflector development schedule.”
In the meantime, Mutiny is busy securing finance to get
Deflector up and running. The company is currently in discussions
with investment bank Credit Suisse on finalising project finance
arrangements for the Deflector project.
Mr Greeve said financing for the project was in line with the
company’s objective to minimise overly dilutive equity issues while
progressing Deflector.
“
We are working on getting the project fully funded without the
need to go into dilutionary equity raisings.
“
Once that funding package is complete, we will make the big
push into production,” he said.
Deflector takes Mutiny
JOHN GREEVE
MANAGING DIRECTOR
MUTINY GOLD LTD
Gullewa site processing plant
one strategic step closer
MINESITE 2012
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