Mutiny extends Deflector deposit
THE DRILL SERGEANT: Perth-based Australian gold-copper play Mutiny Gold has received results from the first 15 holes of its ongoing drilling program at its Deflector gold-copper deposit.
Deflector is the main deposit within the company’s flag-ship Gullewa project in Western Australia.
The current program was designed to test for further along strike extensions and upgrade existing resources to underpin a project feasibility study.
These results will be incorporated into the revised resource estimation to be carried out at the conclusion of the current RC and diamond drill programs.
Mutiny recommenced drilling at the deposit in early May have been able to add length to the Deflector deposit mineralisation.
According to Mutiny the currently known Deflector Gold-Copper deposit contains Mineral Resources of 3.4 million tonnes at 5.4 grams per tonne gold, 4.7g/t silver and 0.8% Copper for 590,000oz gold, 510,000oz silver and 25,500t copper, of which Measured and Indicated Resources total 1.5Mt at 4.8g/t gold, 6.4g/t silver and 1.1% copper for 235,000oz of gold, 310,000oz silver and 16,500t of copper.
The latest results, from holes drilled on three lines immediately to the south of the known West Lode mineralisation, have extended the known length of the mineralisation by 60 metres, bringing the total Deflector strike length to at least 800m.
Results received from drilling to the south of the existing Deflector resources include:
– 6m at 2.7g/t gold and 0.7% copper;
– 3m at 5.7g/t gold and 0.4% copper;
– 8m at 3.0g/t gold and 0.9% copper;
– 3m at 6.7g/t gold and 1.0% copper;
– 7m at 2.7g/t gold and 0.1% copper; and
– 1m at 3.6g/t gold and 5.8% copper.
The drilling program has provided Mutiny with some positive outcomes including an approximate 10% increase in the mineralised zone confirming the company’s expansion target of 1.65M to 2.5M ounces of Gold is on track giving it confidence to schedule an Initial resource upgrade for August.
The increased mineralised length also provides opportunities to boost production rates, extend the open pit mine life and enhance project economics.
Mutiny has commissioned two programs of field work to assist this current and future exploration programs.
These include a surface geological mapping and interpretation program, currently underway in the Deflector area to provide information that will be used to improve the identification of future drill targets.
The company will also be conducting a regional mobile metal ions (MMI) program, which will be “calibrated” against the known mineralisation in the area, and will also be used to assist in the identification of new exploration targets.
The mobile metal ions technique is a geological technique that is often used to identify new exploration targets.
Mutiny will run the MMI survey over areas where it will soon be carrying out exploration drilling in order to gain a better understanding of the geology of the Deflector surroundings.
The Gullewa leases have had a number of owners up until now. As a result many drill cores and RC chip samples have been produced. Mutiny geologists have commenced re-logging the cores, as there has not previously been a consistent method used to log this information.
When this has been done, Mutiny expects to produce a much better geological model of the area.
The Company will use the results to develop 2D models of the geological structures at Spanish Galleon, an area of high-grade mineralisation to the west of the Deflector Deposit.
Mutiny plans to commence production in late 2012 with an open pit mining operation at the Deflector Deposit, followed by underground mining after two years.