Successful drilling campaign allows Mutiny to increase Deflector Resource
THE DRILL SERGEANT: Mutiny Gold has updated the JORC-compliant Resource for the company’s Deflector gold-copper deposit in Western Australia.
Using a 0.5 grams per tonne gold cut-off grade, Mutiny announced the August 2012 Deflector resource model represents an increase of 61,000 ounces of gold, and a 26 per cent increase of average gold grades when compared to the previous resource model the company used in its recently released Bankable Feasibility Study.
Plan and three-dimensional view of Deflector. Source: Company announcement
“As expected, the recent highly successful exploration results have translated into a more robust resource model with significantly higher gold grades and additional ounces,” Mutiny Gold managing director John Greeve said in the company’s announcement to the Australian Securities Exchange.
“The key impact on the Deflector project is likely to be an increased head-grade due to fewer tonnes mined at a higher grade, which will be determined by mining studies.
“The drilling programs from November 2011 to March 2012 have been outstanding.
“Mutiny Gold’s exploration strategy has been to support a low-cost, profitable operation and the results have achieved this.
“With an improved understanding on the geological controls of mineralisation and gold distribution, the company will now aggressively pursue our corporate goal of reaching 2.5 million ounces for Deflector.”
The new estimate for Deflector includes all drilling, including high-grade intersections the company reported in June from the 2012 exploration program.
The Deflector resource now contains JORC-compliant mineral resources of 2.87 million tonnes at 6.41 grams per tonne gold, 6.82 grams per tonne silver and 0.95 per cent copper for 729,000 ounces of Equivalent gold including 591,000 ounces gold, 628,000 ounces silver and 27,000 tonnes of copper using a 0.5 grams per tonne gold cut-off grade.
Mutiny has commissioned consultants to update the open-pit and underground mine designs, with the intention of converting the updated resource to a new reserve.
The company said indications so far demonstrate the higher-grades have the potential to increase the metals production rate of gold and gold copper concentrate, with an associated positive impact on the economics of the project.
Mutiny anticipates the higher head grade should lead to a greater metals output per tonne of ore processed, potentially up to a 28 per cent increase.
The company said the resource model appears to lend itself to a greater overall increase in tonnes of ore mined leading to the expectation that that the deliverables from the new model will be a significant increase.
