Mutiny acquires two Agincourt leases

South Perth gold explorer Mutiny Gold Ltd has acquired two prospective gold leases from West Perth's Agincourt Resources Ltd and its wholly owned subsidiary Reliance Minerals Ltd for $5000 and 250,000 Mutiny shares.

A statement to the Stock Exchange issued by Mutiny said the leases, both situated in Victoria, would complement those the company already held.

The company, which plans to start drilling in neighbouring tenements in six to eight weeks, also announced its aim to secure project financing for the construction of an ore processing plant soon.

The news comes one day after Agincourt announced a $100 million placement to acquire Newmont Mining Corporation's Sumatra-based Martabe gold and silver project.

The full announcement to the stock exchange is pasted below.

Australian gold explorer Mutiny Gold Ltd ("Mutiny"), which listed on the ASX in July, has acquired two prospective gold leases from Agincourt Resources Ltd and its wholly owned subsidiary Reliance Minerals Ltd for A$5,000 and 250,000 fully paid Mutiny Gold shares. The first licence, EL 4782, covers the historic Granya workings in the north of the state from which high grade ore similar to that of the Swifts Creek area, was produced last century. The second licence, EL 4879, is contiguous with Mutiny's 100 percent-owned leases in Swifts Creek area of the "Australian Alps" region of Victoria (Fig 1) and has known gold mineralisation.

Mutiny Gold Managing Director John Greeve said the acquired leases would complement those already held by the company.

"Early indications are that the geological structures which host the Cassilis and King Cassilis mineralization may continue into the acquired licence area."

"The Cassilis Gold mine has a number of quartz reefs which consistently sample high gold grades. From 1886, when reliable production record keeping commenced, until the mine ceased operations in the early 1900s, Cassilis produced over 70,000 oz of gold at a grade of 29.9 g/t," Mr Greeve said.

"Extensive mine infrastructure is already in place at Cassilis from its previous working life from the late 1850s to early 1900s. In addition to the original infrastructure, several kilometres of underground adits and drives were developed which provide access to ore from these systems," he said.

Mutiny plans to commence drilling at Cassilis in the coming six to eight weeks, with the initial objective being to prove up the identified ore reserve to meet JORC standard. This initial drill program is targeted at providing sufficient data to enable a JORC determined resource of sufficient size to justify the release of the company's mine feasibility data and justify mine start up.

The drill program is planned to consist of 3,000m of underground diamond drilling and is expected to take between four and six months to complete. In addition to this there will be a small surface drilling program of 1,500 metres. The underground diamond drilling program will focus specifically on the Cassilis System using mainly existing adits but will also call for some exploration drives.

The depth will be between the upper Snake adit and the lower Shamrock adit a depth of 420m.

Following the completion of the drill program, a mine feasibility study will be completed with a view to commencing mining at Cassilis in the next 12 months.

Other activities included in the 12-month post-listing timetable include:
- Process plant design and optimisation to be completed
- Gold concentrate sales contracts to be completed
- Final bankable feasibility study to be prepared

"Mutiny aims to be an early producer of gold using simple and reliable mining techniques and to develop its promising tenements to the fullest potential to maximise Shareholder returns," Mr Greeve said.

"With factors such as the extensive infrastructure already in place, the results from the geotechnical and metallurgical studies already undertaken coupled with the current gold price, the Directors of Mutiny Gold are very excited about moving forward with the development of its tenements.

"The Company also sees the securing of project financing for the construction of an ore processing plant, as a key milestone in fast-tracking its mining activities."