Mutiny Gold (ASX: MYG) has delivered more high grade near surface gold and copper results which provide yet another boost for the Deflector Gold Deposit.
The significance of the latest gold intersections is an extension to the defined high-grade mineralisation just 160 metres to the north of the current Measured and Indicated Resources, which are located in the West Lode.
Highlights from the reverse circulation extension drilling at Deflector include:
- 6 metres at 37.5 grams per tonne (g/t) gold and 7.8% copper from 102 metres;
- 7 metres at 12.8g/t gold and 1.1% copper from 116 metres;
- 2 metres at 10.7g/t gold and 0.0% copper from 132 metres; and
- 3 metres at 5.7g/t gold and 1.9% copper from 80 metres.
Importantly for the future development of Deflector - these results will now be incorporated into the revised resource estimation, which is forecast to be released in the coming months.
John Greeve, managing director, “The results from the northern extension drilling are very positive and have increased our confidence that significant economic mineralisation will be added to this area.
"This mineralisation will be quantified in the next round of mine feasibility study work.”
Spanish Galleon gold copper hits add extra dimension
Adding some spice to Mutiny's exploration success at Deflector, is the nearby Spanish Galleon Prospect - which is between 400 metres and 700 metres to the west and parallel to the Deflector mineralisation.
Six targets were reverse circulation drill tested, with the highlights:
- 4 metres at 3.3g/t gold and 0.3% copper from 56 metres; and
- 29 metres at 0.9g/t gold and 0.6% copper from 34 metres.
The holes were partly sited to follow-up relatively shallow gold intersections made by previous explorers.
Mutiny said combined with geological logging of drill spoil from historical shallow drilling, the first pass drill results have further refined the character of these gold-copper targets.
Current interpretation of these encouraging results indicates at least four mineralised zones within an intrusive body of granodioritic to dioritic composition.
Deflector by the numbers
Deflector currently hosts a resource of 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 has an exploration target of between 1.65 million to 2.5 million gold ounces.
Mutiny has 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.
The reason is exploration has uncovered high grade intercepts in multiple locations, which predicate likely extensions to the planned open pit.
Scoping Study - Recap
- IRR of 83%
- NPV of $187 million – likely to increase significantly
- Cash surplus of $427 million after payback of capital costs
- Capital cost of $52 million and State Royalties including A$19 million for plant upgrade and A$12 million for the first three months working capital
- Annual production of 50,000 ounces gold, 2,000 tonnes copper and 34,600 ounces silver
- Cash costs over first ten year life of mine estimated at $524 an ounce
- Contained gold ounces of 578,000 ounces (comprising 100,000 ounces open pit and 478,000 ounces underground)
- Estimated average production grade of ore ranges from 4.1g/t gold to 6.5g/t gold