THE BOURSE WHISPERER: Australian Gold-Copper resources company Mutiny Gold has announced an upgrade in the company’s gold resources at its Deflector project 160 kilometres east of the Port of Geraldton in Western Australia.
The upgrade comes on the heels of Mutiny’s 2011 drilling campaigns into the Deflector deposit that were designed to delineate extensions of mineralisation both to the north and south of the previous resource.
Mutiny said this drilling enabled an upgrade of significant portions of the deeper West Lode mineralisation taking it from the Inferred to Indicated status.
The company indicated the 2011 drilling was focused on providing an appropriate quantity of Measured and Indicated resources in order to improve the Resource quality.
The main driver behind this was to attract the interest of a first tier international bank, as well as to ensure a robust resource capable of delivering a strong conversion to Reserves and to prove-up an initial mine life.
The upgraded resources represent a 50 per cent increase in the gold Measured plus Indicated Resources from 230,000 ounces of gold to 350,000 ounces of gold.
The previous 1,500,000 tonnes at 4.8 grams per tonne gold has been upgraded to 2,100,000 tonnes at 5.2 grams per tonne gold.
The Measured plus Indicated Resources also contain an additional 6,000 tonnes of copper metal.
Deflector Deposit Mineral Resources. Source: Company announcement
”Importantly the upgrade provides Mutiny with increased levels of confidence in the geology and grade of the deeper resources to the extent that a significant portion of them is eligible for conversion to reserves as part of the ongoing Definitive Feasibility Study,” Mutiny Gold managing director John Greeve said in the company’s announcement to the Australian Securities Exchange.
Mutiny Gold said it anticipates the Reserve upgrade will be completed by mid-February 2012.