09/10/2014 - 14:20

Mutiny in MOU with GR Engineering

09/10/2014 - 14:20

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Mutiny Gold has signed a memorandum of understanding with GR Engineering Services for the construction of a processing facility at its Deflector copper-gold project in the Mid West.

Mutiny in MOU with GR Engineering
Mutiny's Deflector project.

Mutiny Gold has signed a memorandum of understanding with GR Engineering Services for the construction of a processing facility at its Deflector copper-gold project in the Mid West.

GR Engineering will undertake preliminary work on the project while final approval conditions regarding the MOU are finalised.

Mutiny said it had received several non-binding project finance offers from Australian and global banks for Deflector, and will assist them in conducting due diligence on the project before formal offers are made.

“The combination of the MOU and the indicative offers of funding means Mutiny remains firmly on track to bring Deflector into production as a low-cost Western Australian gold-copper miner,” Mutiny said in a statement.

Mutiny completed a feasibility study on Deflector, which identified a JORC-compliant reserve of 322,000 ounces of gold at a grade of 5.6 gold per tonne, with a further 16,000 tonnes of copper and 360,000 ounces of silver.

The company estimated the project would produce about 60,000 ounces per year over a six-year mine life at an all-in cash cost of just $723 per gold ounce, and a pre-production capital cost of just $67.6 million.

In August, Mutiny announced the volume of open-pit mining at Deflector would be reduced by 80 per cent to align with an underground production rate of 380,000 tonnes per annum.

It was understood to be a reflection of the ore body and current market conditions.

Shares in Mutiny closed unchanged at 3.4 cents per share. 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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