Mutiny Gold has completed a $2.4 million capital raising, enabling the company to make a payment for the acquisition of the Gullewa Gold Project from Canadian listed ATW Gold.
Mutiny Gold has completed a $2.4 million capital raising, enabling the company to make a payment for the acquisition of the Gullewa Gold Project from Canadian listed ATW Gold.
The company raised the funds through a placement of 70 million ordinary shares at 3.5 cents per share to professional and sophisticated investors.
The funds will also enable the completion of infill drilling at Mutiny Gold's Gullewa Deflector Pit.
See company statement below:
Diversified Australian resources company, Mutiny Gold Ltd (ASX: MYG) ("Mutiny" or the "Company"), is pleased to announce the successful completion of $2,450,000 fundraising, by way of placement of 70 million ordinary shares (at 3.5 cents per share) to professional and sophisticated investors. Shares and options will be allotted today apart from application funds amounting to $50,000 which are awaiting bank clearance.
The terms of the placement also provides for the issue of options on the basis of 1 option for every 2 shares subscribed (exercise price 5 cents each, expiry date 23rd July 2013).
Funds have been raised to enable the next $1.25 million tranche of the scheduled payment commitments for the acquisition of the Gullewa Gold Project from Canadian listed ATW Gold Corp Ltd.
In addition the funding will enable the completion of infill drilling Gullewa's Deflector Pit to enable increase in measured resource and upgrade mine studies to Scoping stage report.
Gullewa Gold Project
The Gullewa Gold Project is a camp scale mining centre located 450km north of Perth WA and 170km east of the port city of Geraldton.
The Project contains one new mine (Deflector), 5 partially mined open pits, at least 5 areas of historical underground workings and numerous untested soil geochemistry, gravity and aeromagnetic anomalies.
The Gullewa Gold Project contains total resources of 660,000oz of gold and 25,000 tonnes of copper. The resources, which are reported in accordance with the JORC code, are summarized below in Tables 1 and 2.
Mutiny plans to focus its effort in the initial phase on the Deflector Deposit with the objective of completing a bankable feasibility study and commencing mining operations at the existing Deflector Pit, from which only 2000oz of a pre-mining total of in excess of 530,000oz Au have been mined. The feasibility process will include infill drilling to upgrade portions of the Indicated Resource to Measured Resource status.
Profitable Mine Studies
Mutiny has completed several mine studies in conjunction with experts, seconded from AMC Consultants Pty Ltd.
The studies, based on the previous Bankable Feasibility Study (BFS), completed in 2006 by the then owner Batavia Mining Limited (Batavia), concluded that the establishment of mining operations at Deflector would be profitable and the Project was robust. Mutiny intends to convert these studies into a new BFS.
Deflector Mining
The Mutiny program calls for commencement of operations at Deflector by recommencing open-pit operations. The operations will then go underground after two years. The estimated payback period is 8 months, which would be from the open-pit operations.
Gullewa Processing Plant
Studies show that the existing processing plant at Gullewa can be modified to treat the copper gold ores by the addition of a gravity concentration and flotation circuit to recover the free gold and copper minerals. It is anticipated that a modified processing plant would service all the foreseeable future needs for a Gullewa based operation.
Geology and Mineralisation
The Project lies within the Gullewa Greenstone Belt, in the Murchison Province of the Archaean Yilgarn Block. The major north-south Salt River Lineament runs through the eastern section of the belt and SW-NE-trending splay faults cut the southwestern portion of the belt. Northeast trending faults and shear zones cut the belt. Both the Salt River Lineament and the northeast structures are associated with gold mineralisation.
The Au-Cu-Ag mineralisation of the Deflector Deposit is associated with a NE-trending shear zone that, at Deflector, comprises three sub-parallel mineralised shears, which are typically from 1m to 5m in width. The primary mineralisation is within fractured quartz-pyrite veins with variable chalcopyrite. The deposit is covered by partly lateritised alluvial sediments, which are 3 to 12m thick.
Deflector Deposit
The Deflector Deposit Resources were announced to the ASX by Batavia Mining Limited (Batavia) ASX: BTV) on 31 August 2006. The resources are presented in Table 1. They were estimated above a 1.0g/t Au equivalent cut-off, where Au Eq = Au(g/t) + 2.5 x Cu(%). The geostatistical estimation process was by ordinary block kriging, with appropriate top-cuts.
