Mutiny Gold acquires ball mill for Deflector, looks for increase in gold production
Australian gold-copper resources company, Mutiny Gold (ASX:MYG) has signed a letter of intent with Citic HIC Australia to purchase its first ball mill for the Deflector Project in Western Australias Mid-West Region. The Deflector resource contains JORC Resources of 729,000 ounces of equivalent gold. The letter of intent commissions Citic to commence stage Concrete Crushing Machine 1 of the design and engineering process for the Deflector Projects ball mill - with work to start immediately. Mutiny has identified the first 1300kW ball mill as the critical path, long lead time item for the Project and recognised the potential gains in project timeframes by pre-ordering and securing its place in the manufacturers queue. John Greeve, managing director for Mutiny, said the decision to purchase the ball mill from Citic was made after an extensive review process which included independent analysis by renowned gold plant specialists GR Engineering Services. We are now firmly on our committed path to Chromite Ore Crushing Machine commence significant gold production at our low cost, premium return Deflector gold-copper mine. After conducting extensive studies that have highlighted the commercial robustness of our project, the Deflector team is now commencing the production ready phase and view this ball mill order as Mutiny again making significant strides forward in our long term plan to be a significant gold and copper producer." Mutiny modelling a significant increase in gold production Mutiny is currently modelling a significant increase in gold production at Deflector following the recently announced upgrade to the resource. The August 2012 Deflector resource model represents an increase of 61,000 gold ounces, and a 26% increase of average gold grades when compared to the previous model used in the recently released Bankable Stone Crusher Plant Sale Feasibility Study. For the processing plant to meet the expected production increase, the company foreshadows commencing production with one ball mill due to the ore being softer and hence faster to process, in the first two years and then at the end of year two - increasing processing capacity by installing a second twin mill. Analysis The Bankable Feasibility Study confirmed Deflector to be a low cost, highly profitable Gold Copper Project with an estimated low average Life of Mine Cash Operating Cost of $617 per ounce gold equivalent. Mutiny has a Resource target of 2.5 million ounces at Deflector, indicating significant potential upside in NPV and value accretion for shareholders. There are key value adding milestones and news flow ahead for Mutiny including:
