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  • Mutiny Gold Gets Final Mining Proposal Nod For Deflector Project 0 comments
    Feb 6, 2013 6:52 PM

    Mutiny Gold (ASX:MYG) is on the road to mining at Deflector with acceptance of its Mining Proposal for the gold-copper project in mid-west of Western Australia.

    The WA Department of Mines and Petroleum (DMP) is the last of the key government approvals required for the Deflector Project before commencement of mining.

    Approval is subject to payment of appropriate security bonds.

    Mutiny Gold's managing director, John Greeve, said that with the completion of the approvals process, Mutiny's project team can now focus on implementing the Deflector Project plans leading into mining and production.

    Deflector background

    Mutiny Gold completed a comprehensive Definitive Feasibility Study (NYSE:DFS) on the Deflector Project in the last quarter of 2012.

    This highlighted Deflector as a profitable, low cost (cash cost of $618 per ounce), high gold grade project with significant gold recoveries and strong scope to increase resources, profit and mine life.

    The DFS forecast an A$223 million profit with an initial production rate of 65,000 oz Au Eq (annual range 48,000 (1st year) to 71,000 oz Au Eq), with a forecast low average operating cash cost of $618 per oz Au Eq and an initial mine life of seven and a half (7½) years.

    The initial mine plan allows for a seven and a half (7½) year Mine Life commencing with a two (2) year open pit followed by five and a half (5½) years underground.

    Production will commence at 480,000 tonnes per annum in the open pit, followed by 380,000 tonnes per annum in years three (3) to seven (7) in the underground mining operation, resulting in total metal production of 479,000 oz Au Eq (including 391,000 oz Au, 18,000 t of Cu and 396,000 oz of Ag).

    On December 6, 2012 Mutiny announced it had entered into a major financing agreement for Deflector with Canadian company Sandstorm Gold Ltd.

    The US$43 Metals Purchase Agreement struck with Sandstorm Gold involved US$38m in upfront payments, US$5m in equity and a possible additional US$4m in performance based payments.

    The latter is intended as supplemental finance for plant expansion in year 3 of mining at Deflector.

    The MPA is designed to complement the more traditional bank provided project finance which will collectively meet the majority of requirements for the development of the Deflector Mine and associated infrastructure.

    The Bank Project Finance with Credit Suisse and other banks is being finalised in conjunction with A$11m finance leasing of the project's accommodation village.

    The receipt of the Mining Proposal approval is seen as an important technical step in completing the Bank Project Finance.


    Today's approval paves the way that places Mutiny Gold that much farther down the mining and production road at Deflector. It is part of a step change and transition from explorer to producer ranks.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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