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Mutiny Gold Commences Exploration Within Deflector Corridor

Mutiny Gold (ASX: MYG) aims to add to its resource base by commencing drilling within the Deflector Corridor, at its 100% owned Gullewa Project in Western Australia.

The Deflector Corridor has not seen much exploration to date and based on previous success there would be expectations for a continuation of high-grade mineralization seen at depth.

Previously, this work yielded high grade gold and copper intercepts such as 3.6 metres at 153 g/t gold and 13.3% copper in the 2012 campaign.

The current Deflector deposit resources stand at 729,000 ounces of Equivalent gold including 591,000 ounces of gold, 27,000 tonnes of copper and 629,000 ounces of silver.

Southern Geoscience has reviewed all geophysical data to consolidate 80 targets for drilling.

Mutiny has committed to an initial 3,000 metres of RC drilling program for testing SAM-generated targets, aimed at defining high-grade gold/copper mineralisation amenable to open mining methods with the potential to extend the Life of Mine of planned open pit operations.

Work has now commenced developing a detailed structural framework to identify regional controls on mineralisation and highlight targets along the highly prospective yet under-drilled Deflector Corridor and extended areas surrounding the Gearless Well Intrusion.

Mutiny will employ advanced technologies such as Sub-Audio Magnetics (NYSE:SAM) to map the regolith under cover because the Deflector Corridor is blanketed with transported overburden.

The combination of SAM data and structural framework will provide the basis for vectoring in on prospective blind targets and further unlock the exploration potential of the Gullewa Project.

Mutiny Gold's managing director, John Greeve, said continued exploration is an important key to growth during this phase of Mutiny's transition to a successful and profitable gold producer.

"The Deflector Corridor and Gearless Well areas have seen very little exploration outside of Deflector, and we believe the likelihood of new discoveries is extremely high.

This innovative, yet well planned, exploration approach is the best strategy for maximising our exploration budget as we commence construction of the plant and mine".

"Early success in this exploration program will align with our strategy and allows us to ramp up production to over 100,000 ounces gold equivalent earlier than planned," said Mr Greeve.

Diamond drill program

In addition, diamond drilling has been designed and scheduled targeting extensions of Mutiny's gold/copper Deflector Deposit later in the year.

Exploration Strategy

After reviewing Mutiny data, SGC noted the aeromagnetic data coverage was suitable for generating a high resolution structural framework for identifying potential structural controls on mineralisation and therefore structural targets.

Mutiny believes this work will assist in identifying structures related to mineralisation, and plan to utilise this work for drill testing.

SGC also noted the conductive nature of the overburden in this area means any form of electrical surveying will struggle to get current penetration into the bedrock.

Instead of trying to detect bedrock anomalism, the overburden can be made the primary target; namely mapping out the base of the regolith using the sub-audio magnetics (SAM) method.

The SAM method has proven successful in other conductive environments in the Goldfields for mapping changes in the depth of weathering at the base of the regolith that are associated with structures of interest.

One of the key features of the Deflector Deposit is deep oxidisation of sulphides to 50 metres below surface, contrasting with very shallow weathering of the host-basalt.

Mutiny believes SAM surveying will allow the exploration team to vector in on prospective targets for drilling by highlighting deeper zones of weathering associated with oxidized sulphide mineralisation.

As the Deflector Corridor is highly under-drilled, this 'Smart Targeting' strategy will minimise drilling costs associated with section drilling maximising Mutiny's exploration budget.

Initial 3,000 metre program

With the aim of defining high-grade gold/copper mineralization amenable to open mining methods, an initial 3,000 metre RC drilling program will start in April testing targets generated from SAM surveying.

Further drilling and SAM surveys will follow later in the year, following up on previous drilling results and targeting stage 1 extensions of Deflector.

Project and finance update

Engineering works and supply contract discussions are progressing well and are on track to be ready for activation with the completion of project finance, which is also progressing well.

Mutiny said it is confident of being able to make a positive statement in regards to project finance within the coming weeks.

Key contracts include the Plant (NYSE:EPC), mining, village, power and communications.

Processing plant design is at an advanced stage, thanks to the early engagement of GR Engineering Services and detailed design of the ball mill from Citic HIC Australia.

The tendering process for the other key components of plant is all but complete, allowing the detailed design to continue.

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