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Mutiny Gold Looks To Iron Ore Earner With Rocksteady In WA

Mutiny Gold (ASX: MYG) is going back to its iron ore roots with a initial resource tabled for its Rocksteady Iron Project within the the Gullewa tenement package that is home to its Deflector gold project.

Because of the location to infrastructure and proximity to other iron ore projects it should enable Mutiny to develop an iron ore business in relatively quick fashion at little cost, while not idle on the Deflector gold front.

This could grow to become a tidy revenue earner for Mutiny, possibly generating cash flows within six to nine months and building to a $20 to $30 million per annum business from iron ore over time.

First pass JORC Inferred Resource is 650,000 tonnes grading 54% iron (Fe) at Rocksteady which is just the tip, as there is an exploration targets of between 1.5 million tonnes and 4.5 million tonnes of hematite iron.

However, Rocksteady could be just one of a number of iron deposits within Gullewa, which further exploration will uncover.

The JORC resource would have been larger but for limitations of available data, so only part of the estimate can currently be reported as a JORC-compliant resource, with the remainder set as exploration targets.

Rocksteady is strategically located approximately 50 kilometres from a railway, and 200 kilometres from the Port of Geraldton.

Large iron ore footprint

There is a "massive 170 kilometres of un-explored banded iron formation, where Rocksteady may potentially be just one of several iron deposits to be commercially developed," John Greeve, managing director of Mutiny Gold.

There are generated exploration targets to test the full strike extent contained within the Rocksteady mining lease, which will see follow up future drill programmes.

Rocksteady Iron Background

The Rocksteady iron project is part of the Gullewa tenements and is located 6 kilometres west of the Deflector gold-copper project.

The tenements have seen little focused iron exploration over the years, with development previously held back by a lack of suitable local transport infrastructure.


A geological modelwas developed by Mutiny Gold in June 2013 based on the 24 Reverse-Circulation drilling conducted by Batavia Mining in 2007. The total modelled strike length is 250m and up to 100m wide. The BIF unit and mineralisation is open to grid west and south.

Exploration Target

A combined Exploration Target of between 1.5 million tonnes and 4.5 million tonnes of hematite mineralisation has been identified to date.

These targets include a zone 200m along strike and 100m down dip of the existing JORC Resource, where mineralisation remains open due to insufficient drilling and a further extension of mineralisation through to the tenement boundary.

Assuming widths and grades remain similar to that estimated in the Resource, the first target is estimated to have the potential to contain 500,000 tonnes to 1.5m tonnes of hematite mineralisation with grades ranging from 51% Fe to 56% Fe.

Next steps

Approvals have been granted for next stage of drilling.


Rocksteady provides a "bridge" to generate early cash flows from an iron ore endowment within Gullewa. While a small resource to start, this will grow and with proximity to infrastructure and iron ore mines should ultimately fashion an iron ore business of up to one million tonnes per annum.

CAPEX could be expected to be relatively low for a Rocksteady project iron ore development as well as a likely low operating cost and given a strong iron price could generate a very tidy $20 to $30 million per annum in revenue.

Which is a nice "earner" while not taking the eye off the development of Deflector gold project. This is a value accretive development for Mutiny in the short to medium term, we can see a higher share price today.

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