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Mutiny Gold Hits High Note, Lifting Gold Reserves At Deflector

Mutiny Gold Ltd (ASX: MYG) continues to impress with a large increase in underground JORC resource and ore reserve for its Deflector Gold-Copper deposit in Western Australia.

Fresh from a Definitive Feasibility Study (NYSE:DFS) that projected a 32% increase in forecast profits to A$225 million, Mutiny is ringing in more news on the road to production at Deflector.

Continental Resource Management and Widenbar and Associates carried out the review which has led to an increase in the Deflector JORC Reserve by a further 63,000 ounces of gold equivalent including 57,000 ounces to 367,000 ounces of gold and 63,000 ounces of gold Eq to 415,000 ounces of gold Eq.

The JORC 'Probable' Ore Reserve increased, 21% gold grade and 45% ounces gold equivalent.

Additional Reserves add high-grade ore +9g/t Au to the underground mining schedule for years 2 and 3.

Mutiny Gold's managing director, John Greeve said, the reclassified Indicated Resources demonstrate Deflector's high-grade tenor delivered from our successful drilling campaigns.

The flow-through to Ore Reserves adds increased revenue to the project and places even greater confidence in our mining plan.

Furthermore, the Splay Lodes offer further opportunity for additional high-grade ounces within close proximity to planned mine development and will be included as targets in our exploration strategy." said Greeve.

Resource upgrade in detail

The result was a reclassification of four complete or partial West Splay Lodes from Inferred to Indicated resource category, which was peer reviewed by Mutiny and SRK Consulting Geologists.

The increase to Indicated resource category totals 184,000 tonnes at 13.2 g/t gold for 79,000 ounces gold or 87,000 ounces gold equivalent.

Entech Mining Consultants (Entech) have reviewed the revised classification, the key result is material reclassified from Inferred Life of Mine (LOM) into the Probable Reserve Category (table 2) without changes to the current Mine Design.

The revised classification has increased 'Probable' Ore Reserves by 196,000 tonnes at 9.0 g/t gold for 57,000 ounces gold, or 63,000 ounces gold equivalent.

The Deflector Resource Classification review by CRM and Widenbar examined large and high-grade splay lodes associated with the Western Lode.

These have been reviewed in detail both from a geological confidence and geostatistical point of view. Four of these lodes have been either fully or completely classified as Indicated rather than the initial (July 2012) classification of Inferred.

Of the 10 Splay Lodes examined, four Lodes 1205-W2, 1205-W3, and 1205-7W have been assigned as Indicated, while part of 1205-5W is Indicated and the remainder (where there is less data support) is Inferred. T

he data support, average distance to samples etc is illustrated for these lodes below. Consideration was also given to the classification used in the adjacent main Western Lode.

The result is an additional 79,000 oz gold, 26,000 oz silver and 2,000 tonnes copper have been upgraded to Indicated Resource Category, representing 87,000 oz gold equivalent. The revised JORC compliant resource estimate for Deflector.

Deflector JORC Ore Reserve Update

The changes to the resource classification has affected Deflector's underground mining reserve, whereby material initially included in the Inferred Life of Mine (LOM) plan has now been up-graded to JORC-compliant 'Probable' Ore Reserve category.

While the open pit ore reserve remains unchanged from the October 2012 update, the underground Ore Reserve has increased 'Probable' Ore Reserves by 196,000 tonnes at 9.0 g/t gold, 2.8 g/t silver and 0.6% Copper for 57,000 ounces gold, 18,000 ounces silver and 1,000 tonnes of copper for 63,000 ounces gold equivalent.

Analysis

Mutiny Gold continues to impress on the road to Deflector production.

The flow-through to ore reserves will add increased revenue to Deflector as well as providing a greater confidence level in the mining plan.

Proactive Investors believe that Mutiny Gold is ticking all the right boxes in what is an outstanding gold/copper deposit. Further, that naysayers will get burned as Mutiny Gold achieves further milestones.

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