Seeking Alpha

Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
Proactiveinvestors
My blog:
Proactiveinvestors
  • Mutiny Gold Uses SAM Survey To Double Strike Length Of Deflector Gold Project  0 comments
    May 20, 2013 7:33 PM

    Mutiny Gold (ASX: MYG) has availed the Sub-Audio Magnetics, or SAM technology survey to effectively double the "footprint" of the Deflector Corridor, within the 100% owned Gullewa Project in the Mid-West Region of Western Australia.

    Southern Geoscience used SAM to find favourable structural settings for Deflector where 'clones' of Deflector have been identified near the Gearless Well Intrusive - supported by historical drilling results.

    The SAM Survey results more than double the strike length of the mineralised host structure, where data indicates a strike length of some 2,350 metres, which remains open to the north and south.

    Previously, the strike of the Deflector resource had been identified as being 950 metres in length.

    However, interpretation of new SAM data has confirmed the existing resource signature, and indicates the mineralised host-structures continue at least 450m north and 950m south to a combined strike length of over 2,350m.

    Mutiny Gold managing director, John Greeve, said: "The success of the use of SAM technology at Deflector supports our belief in the prospectivity of the Deflector Corridor, which suggests it may become one of the most significant gold discoveries in Western Australia in recent years.

    "The Company's exploration strategy has successfully delivered targets, aligning with Mutiny Gold's 'smart targeting' approach and unlocking the exploration potential of the Gullewa Project.

    Greeve said, "Mutiny has always suggested that its previous success in proving up a highly valuable, high grade, low cost gold-copper project at Deflector was just the start of something big and this new work is validating that confidence."

    Upside

    There could be significant upside to the current resource inventory and exploration target estimate as well as the discovery is limited by the SAM survey extents, with over 3,000 metres of prospective stratigraphy remaining open to the north and south.

    SGC mapped the weathering profile under cover, along with developing a detailed structural framework based on existing high-resolution magnetics data.

    The current exploration target range of Deflector 9 to 14 million tonnes at 4 to 8 g/t gold for 1.65 to 3 million ounces of gold and 40,000 to 80,000 tonnes of copper from future drilling programs.

    These significant discoveries were confirmed by technology to successfully map the weathering profile under cover, along with developing a detailed structural framework based on existing high-resolution magnetics data.

    Deflector Corridor structure

    Using Mutiny's existing high-resolution airborne magnetics data, SGC has completed a regional structural framework study over the northern Gullewa area, together with a detailed litho-structural interpretation over the Deflector project, which covers the Deflector Corridor and the Gearless Well Intrusive.

    A major east-west trending thrust fault has been interpreted, which runs from the west, immediately north of the Deflector deposit and along the northern margin of the Gearless Well intrusion terminating at the Salt River fault.

    The presence of a major structure here has significant implications for the prospectivity of extensions to the Deflector mineralisation.

    Given the value-add of the structural interpretation to Mutiny Gold's exploration strategy, Southern Geoscience has been commissioned to extend coverage over the entire Gullewa project.

    SAM Survey results

    The Sub-Audio Magnetics survey was conducted over Deflector, extending coverage over the Davy Jones, Spanish Galleon and Mary Celeste prospects.

    The survey aimed to map the weathering profile under thick cover, highlighting deeper zones of weathering associated with structural-related zones of mineralisation which contrast strongly with the basalt host-rock.

    The SAM data cannot give precise information to the depth of mineralisation, but rather indicates a potential target which is otherwise blind.

    The SAM method has proven successful for discovering blind gold deposits in conductive environments in the Goldfields, such as the Songvang Gold Mine near Agnew which like Deflector, was hosted in basalt and had no surface geochemical signature because of thick transported overburden.

    The northern extension continues approximately 450 metres into the Davy Jones prospect, and is also supported by RC intersections from the 2012 campaign; including: 1 metre at 13g/t from 51 metres and 1 metres at 8.9g/t from 43 metres.

    Interpretation work by SGC continues on other potential targets identified within the SAM survey area. Completion is scheduled for late May, however, Mutiny has immediately proceeded with detailed drill designs.

    Analysis

    In a tough macro period for gold companies, the more than doubling in size of the Deflector corridor and strike length is a welcome development and provides a signal as to just how large the Gullewa project could become.

    Identifying 'clones' of Deflector near the Gearless Well Intrusive using SAM - supported by historical drilling results may render the current resource and exploration targets obsolete over time. This would also positively impact project economics and projected returns for Deflector.

    Mutiny should gain a "kick" from these results and a tantalising beacon as to what could be at Deflector.

    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.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.