Mutiny Gold's (ASX: MYG) continued string of high grade results from the Deflector Project in Western Australia have culminated in the company doubling the initial production target rate to 100,000 gold ounces.
The increase is supported by extensions of both underground and open pit resources.
The current drilling program is now close to completion, with the results to be included in planning for further resource upgrade drilling programs.
Recent drilling at Deflector testing the northern and southern resource extensions is the catalyst behind Mutiny's target, as results reinforced the company’s view of the potential for a significant increase in resources.
Mutiny said that the company has resolved to expand the scope of the Feasibility Studies to incorporate a re-assessment of Deflector, which is now expected to support production in the order of 100,000 to 120,000 gold ounces annually when fully ramped up.
John Greeve, managing director, said that the increase to 100,000 ounces annually should provide significant increases in forecast annual profits to be derived from Deflector.
“The doubling of production at Deflector will allow Mutiny to unlock significant value for our shareholders.”
The recent exploration success has given Mutiny the confidence that the resource at Deflector is of sufficient scale to justify an expanded mining scenario.
The current Pre-Feasibility study work indicates that this may be attained by increasing the underground mining rate from 320,000tpa to 500,000tpa should the strike length be extended as expected, as this will allow an increased number of underground mine headings and therefore the increased production rate.
The Deflector statistics
Deflector already holds some resources in the higher confidence categories, with Measured 130,000 gold ounces and 12,000 tonnes of copper, and Indicated 105,000 gold ounces and 4,500 tonnes of copper.
The deposit contains a total resource of; 3.4 million tonnes at 5.4g/t gold, 4.7g/t silver and 0.8% copper for 590,000 gold ounces, 510,000 silver ounces and 25,500 tonnes of copper.
Mutiny is looking at an initial production profile of around 50,000 ounces of gold, 50,000 ounces of silver and 2,000 tonnes copper in concentrate annually over 10 years.
Mutiny has an exploration target of between 1.65 million to 2.5 million gold ounces.