Mutiny Gold delivers impressive 3.6m at 153g/t gold and 13.3% copper at Deflector

Mutiny Gold (ASX: MYG) continues to deliver a string of high grade drill results at the Deflector gold deposit, and today was no exception.

The standout intersection from the recently completed 30 hole diamond drilling program was; 3.6 metres at 153 grams per tonne (g/t) gold and 13.3% copper from 145 metres.

Other highlights included:

- 3 metres at 47.6g/t gold and 1.5% copper from 249 metres;
- 4 metres at 17.4g/t gold and 1.2% copper from 300 metres; and
- 6 metres at 20.9g/t gold and 0.3% copper from 255 metres.

The outcome of the significant new high-grade gold intersections, which were from the West Lode of the Deflector deposit - is that they will be incorporated into the revised resource estimation, which is expected to be released in the coming weeks.

Importantly - Mutiny said that multiple intersections were achieved within some holes, as a number of parallel lodes are present at depth within the deposit.


The significance of the latest intersections

The highest grade hit of 3 metres at 153g/t gold and 3.3% copper in 11DD1A, the northern most diamond hole - implies that high-grade gold copper mineralisation is open below 130 metres vertical depth for at least 150 metres to the north of 19500N.

The high-grade intersections achieved at vertical depths of the order of 215 metres to 270 metres indicate that significant mineralisation persists at depth.

Finally, the intersection of 6 metres at 20.9g/t gold in 11DD27, drilled 600 metres to the south of 11DD1A, indicates the length of the deposit within which high-grade mineralisation can be expected to be present at depth.

For at least 100 metres to the south of 19000N, this high-grade gold copper mineralisation is open below 130 metres vertical depth.


Deflector by the numbers

Deflector currently hosts a resource of Measured 130,000 gold ounces and 12,000 tonnes of copper, and Indicated 105,000 gold ounces and 4,500 tonnes of copper.

The deposit contains a total resource of; 3.4 million tonnes at 5.4g/t gold, 4.7g/t silver and 0.8% copper for 590,000 gold ounces, 510,000 silver ounces and 25,500 tonnes of copper.

Mutiny has an exploration target of between 1.65 million to 2.5 million gold ounces.

Mutiny has said that the company has resolved to expand the scope of the Feasibility Studies to incorporate a re-assessment of Deflector, which is now expected to support production in the order of 100,000 to 120,000 gold ounces annually when fully ramped up.

The reason is exploration has uncovered high grade intercepts in multiple locations, which predicate likely extensions to the planned open pit.


Scoping Study - Recap

- IRR of 83%
- NPV of $187 million – likely to increase significantly
- Cash surplus of $427 million after payback of capital costs
- Capital cost of $52 million and State Royalties including A$19 million for plant upgrade and A$12 million for the first three months working capital
- Cash costs over first ten year life of mine estimated at $524 an ounce
- Estimated average production grade of ore ranges from 4.1g/t gold to 6.5g/t gold

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19710/mutiny-gold-delivers-impressive-36m-at-153gt-gold-and-133-copper-at-deflector-19710.html