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Mutiny Gold gives ATW Gold Corp notice of 100% Gullewa ownership intentions

Mutiny Gold (ASX: MYG) has now formally notified ATW Gold Corp Australia Pty Ltd of the intention to move to 100% ownership of the Gullewa Gold Project.

The significance of the transaction is that Mutiny will now have full ownership and full control of the high grade Deflector Deposit gold deposit, which is hosted within Gullewa.

As a result of the decision by Mutiny, the two companies will not be entering into a joint venture in relation to the Gullewa project.

To earn the additional 30% and move to 100% ownership, Mutiny is required to complete the following by the end of 2013:

1. Complete a positive Feasibility Study;
2. Sole funding all expenditure;
3. Pay ATW a final $4 million instalment; and
4. Pay ATW a 10% net profit interest royalty in respect of minerals derived from the Gullewa Gold Project.


Deflector - the next step

Mutiny is continuing work on a Feasibility Study, with the company having engaged GR Engineering Services to head up the mechanical engineering and plant design works.

Xstract Group is conducting the mine studies and Mutiny’s in-house project manager and metallurgist, Kevin Reynolds is managing the Feasibility Study process as well as overseeing the metallurgical test work, with the study expected to be completed in early 2012.

Earlier this year Mutiny delivered a bumper Scoping Study, which included an IRR of 83%, a NPV of $187 million – which is likely to increase significantly, and cash costs over a ten year life of mine of just A$524 an ounce.


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 5.4 grams per tonne (g/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.