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Mutiny Gold Iron Ore Scoping Study Comes Up Trumps At Gullewa

Mutiny Gold (ASX: MYG) has completed a Scoping Study for its Rocksteady Iron Project which has demonstrated an iron ore business could be developed at likely low capital and low operating costs.

"Likely" because the full results of the study cannot be released in detail given the Resource at Rocksteady is still in the "inferred" status.

However, the results of the study, and access to infrastructure and with multiple customers wanting the iron ore, Rocksteady should be capable of development to provide medium term cash flows for Mutiny and be highly profitable at current iron ore prices.

With Rocksteady producing iron within the next year, it could just one of a number of "boutique" hematite iron mines developed at Gullewa given the iron ore endowment on the tenements.

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

While for the 56% product, the price was $112 per tonne with a 12 month range of $87 to $162.


The Rocksteady Iron Project is contained within Mutiny Gold's 100%-owned Gullewa multi-mineral project licenses, located within the Murchison Region of Western Australia.

The site is approximately 70 kilometres by road from Morawa and 35 kilometres south of the existing infrastructure corridor that runs east from Geraldton.

Originally mined for gold, an abandoned open pit exists at Rocksteady which is accessed by haul roads to infrastructure which includes a camp and offices approximately 5 kilometres distance.


Critical for an iron ore project, regional infrastructure is in place. The port of Geraldton and the proposed port of Oakajee are within 200km by road and rail. Rail is within 50km of the Rocksteady hematite project.

Existing infrastructure within the project area includes a camp that contains wet and dry messes and accommodation for 40 workers, an office and workshop facilities, extensive water bore fields, and tailings facilities with ready capacity.

Resource base

An independent assessment of historic drilling and exploration undertaken has been correlated to formulate an initial JORC Inferred Resource for the Rocksteady Iron Project of 650,000 tonnes at 54% Fe. While still small it is high grade and provides a cash flow starter project with scope for expansion.

Resource Upgrade Expansion Plan

The planned drilling programme will be conducted in two phases:

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

In addition, limited diamond drilling is planned for geotechnical and metallurgical studies.

Phase 2 is designed to test the full extent of the Rocksteady mining tenement.

Early success will prompt follow-up drilling campaigns to further increase the JORC resource.

Exploration target

The combined Exploration target is 4.5 million tonnes of Direct Shipping Ore (DSO) ranging from 51% Fe to 56% Fe plus an estimated equivalent amount in upgraded ore from the lower grade waste to be mined as part of the operations.

Stage 1 target includes 500,000 tonnes to 1.5m tonnes of hematite with grades ranging from 51% Fe to 56% Fe and Stage 2 target includes of 1mt to 3mt of hematite with grades ranging from 51% Fe to 56% Fe.

Next steps

Mutiny will:

- Proceed with the permitting process
- Proceed with the drilling campaign to target an additional 500,000 to 1.5Mt
- Continue with commercial discussions including offtake negotiations to rapidly bring Rocksteady into production; and
- Continue detailed mine planning

Rocksteady Iron complements Mutiny's lead Deflector Gold/Copper Project.

Rocksteady is located 10km west of Deflector, 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 the company which is important in these tight fiscal markets.

John Greeve, Managing Director of Mutiny Gold Ltd, said: "Deflector is our key project but we have a multi-mine strategy which encompasses additional gold and iron mines. Rocksteady is the first of potentially several iron deposits which may be commercially developed.

"We, and a number of potential customers, have identified a 'window of opportunity' to bring the under drilled, but highly prospective iron ore potential at Gullewa to the market through the growing iron ore infrastructure assets being developed in the region.

"The completion of this study allows us to negotiate the key offtake contracts with a sound understanding of the project dynamics."


They say pennies from heaven seldom occur, well Mutiny Gold has just had a fill with the scoping study tapping the prolific Gullewa mineral endowment for iron ore. The result? An iron ore business can be developed and cash flows could be generated within a year.

With infrastructure at the ready and multiple iron ore customers for Rocksteady iron in the wings, the project will provide Mutiny with a sustaining cash flow generator. In current markets, pennies from heaven.

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.

All told, the study provides handy catalysts for valuation expansion for Mutiny from the current $0.034 and Market Cap. of $17 million. Perhaps it should be called Mutiny Resources. The study results should see the Mutiny share price move higher today.

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