THE BOURSE WHISPERER: Mutiny Gold (ASX: MYG) has updated the underground JORC-compliant resource and ore reserve for the company’s Deflector gold-copper deposit in Western Australia.
The update comes after a resource classification review, which paid particular attention to the West Lode splay zones which contain some of the highest grade mineralisation discovered to date at the Deflector gold-copper deposit.
The result is a reclassification of four complete or partial West Splay Lodes from Inferred to Indicated resource category.
Table 1: Deflector JORC-compliant resource. Source: Company announcement
The increase to the Indicated resource category totals 184,000 tonnes at 13.2 grams per tonne gold for 79,000 ounces gold, 26,000 ounces of silver and 2,000 tonnes of copper upgraded from Inferred to Indicated Resource Category, representing 87,000 ounces gold equivalent.
A review of the revised classification has led to a material reclassification from the Inferred Life of Mine (LOM) into the Probable Reserve Category.
Table 2: Deflector JORC-compliant Reserves. Source: Company announcement
The changes to the resource classification has affected Deflector’s underground mining reserve, whereby material initially included in the Inferred LOM plan has now been up-graded to JORC-compliant ‘Probable’ Ore Reserve category.
While the open pit ore reserve remains unchanged from the October 2012 update, the underground Ore Reserve has increased ‘Probable’ Ore Reserves by 196,000 tonnes at 9g/t gold, 2.8g/t silver and 0.6 per cent copper for 57,000 ounces gold, 18,000 ounces silver and 1,000 tonnes of copper for 63,000 ounces gold equivalent without changes to the current mine design.
Mutiny Gold considers the reclassified Indicated Resources demonstrate Deflector’s high-grade tenor delivered from the company’s successful drilling campaigns.
“The flow-through to Ore Reserves adds increased revenue to the project and places even greater confidence in our mining plan,” Mutiny Gold managing director John Greeve said in the company’s announcement to the Australian Securities Exchange.
“Furthermore, the Splay Lodes offer further opportunity for additional high-grade ounces within close proximity to planned mine development and will be included as targets in our exploration strategy.”