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Mutiny Gold Drilling To Expand, Upgrade Rocksteady Iron Ore Resource

Mutiny Gold (ASX: MYG) has a drill rig now onsite at its Rocksteady Iron Project, aiming to increase the resource base of 650,000 tonnes at 54% iron (Fe) defined in August.

The project, part of the Gullewa tenement in the Murchison in Western Australia which includes the flagship Deflector gold-copper deposit, will see over 2,200 metres of RC and diamond drilling, aiming for resource extensions and upgrades.

Rocksteady is located 10 kilometres west of Mutiny's Deflector gold-copper project, within the company's Gullewa Tenement Package and is part of the Company's multi-mine strategy.

It offers a low cost start up and early cash-flow for Mutiny.

There is an Exploration Target of 0.5 metres to 1.5 metres of additional tonnes of hematite grading 51% to 56% iron, while lifting the confidence level to Indicated Resource.

Now while that may not seem a large number, it is a starting point and any resource increase at this grade will feed in large part through to improve project economics.

Rocksteady is known to have attracted a number of parties interested in buying iron ore from Rocksteady which could be in production in 2014.

The high grade nature of the resource and the location of Rocksteady are prime reasons for the interest.

The grade of iron at Rocksteady is sufficiently high could see profit margins for the project, working on a current price for 52% iron product as high as $79 to $100 a tonne.

As a prelude to drilling commencing in a day or so, site supervising earth works and clearing is underway.

Stage 1 Drilling

The Stage 1 programme infill drills the existing, known mineralised footprint, then progressively steps out on a 40 metre x 40 metre grid, developing a JORC 'Indicated' resource of up to 1.5 million tonnes to support a projected two year mine life.

John Greeve, managing director of Mutiny Gold said the programme is aiming to improve "the robust nature of the project through identifying further resource extensions and upgrades enabling us to expand the life and scale of the proposed mine."

Greeve said that Mutiny already has a good understanding of the economic parameters for Rocksteady Iron.

The expectation is that the Rocksteady resource will extend along strike and down dip, and is aiming to progressively develop the size of the resource.

Given the production capacity being considered in the Scoping Study, additions to the resource will enable Mutiny to rapidly expand the production profile as these additional tonnes are developed.

Development strategy

The logistics strategy for Rocksteady is to transport the DSO ore to the Geraldton Port by truck or rail.

The Gullewa Iron assets are at a strategic advantage in this regard as they are just 40 kilometres from railhead and less than 200 kilometres from port via road.

There is scope given the Gullewa footprint to establish boutique Hematite iron mines within the Gullewa tenements and use subsequent cash-flow to expand drilling and tenement exploration.

Scoping Study

The Rocksteady Scoping Study was undertaken 'in house' based on information supplied by mining consultants, contractors and transport logistics companies.

Based on the results of the Scoping Study, Mutiny is progressing development of Rocksteady which includes permitting, scheduling for environmental and heritage surveys and the resource definition drilling programme.


Rocksteady provides Mutiny with a value-adding project, which adds, rather than detracts from Deflector given it has a low start up cost and could generate cash-flows as early as 2014.

We would not underscore the iron ore exploration upside potential either as there is 170km of banded iron structure.

Rocksteady is the first of potentially several iron deposits which may be commercially developed by Mutiny. Which is all positive as the Deflector gold project ticks along in the background.

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