Mutiny Gold rethinks Deflector

THE CONFERENCE CALLER: Mutiny Gold (ASX: MYG) took the opportunity of being at Diggers & Dealers to announce its new management regime has completed an internal Mine Operators Review of the company’s Deflector gold, copper and silver project, located within the Murchison Region of Western Australia.

The company said the review was undertaken on details from its 2013 Definitive Feasibility Study (DFS), from which it considers to have produced a much simpler plan for developing the ore body.

The review has taken place over the past couple of months, during which time the new management team has completely reviewed the Deflector project, beginning with the geology and the rock type and conditions.

The review has determined the mine as a shallow, narrow vein, high grade underground mine in excellent rock conditions, which the management considers to be straight forward for experienced Western Australian underground miners.

A purpose-built processing facility will be constructed for the Deflector mine based on an optimal underground production rate of 380,000 tonnes per annum.

The underground mine now equates to 80 per cent of the project’s value with the size of the open pit reduced in line with a natural change-over point at 80m depth on the Western Lode based on rock type, rock conditions and expected thickness.

 

Deflector open pit and underground isometric. Source: Company announcement

 

This review work has generated a new reserve of 1.8 million tonnes at 5.6 grams per tonne gold (322,000 ounces), 6.3g/t silver (360,000 ounces) and 0.9 per cent copper (16,000 tonnes).

The company has also completed a detailed technical review of the exploration strategy associated with its Gullewa gold project, from which it says it has identified a logical order to exploration targets.

Mutiny Gold said its immediate focus will be on the seven kilometre long Deflector Corridor, which it explained is untested and under-explored outside of the upper parts of the Deflector ore body.

Email: mlg@mutinygold.com.au

Website: www.mutinygold.com.au