Positive drilling results at Deflector

South Perth-based Mutiny Gold says final drilling results at its Deflector deposit near Geraldton have returned significant copper-gold mineralisation.

In a statement to the Australian Securities Exchange Mutiny said the significant high-grade gold-copper intersections included the presence of 32.8 grams per tonne of gold and 13.4 per cent copper at 3 metres.

Mutiny expects to release a new resource estimate for the Deflector deposit later this month.

"The Deflector Deposit continues to live up to and in many cases exceed our expectations," said Mutiny Gold managing director, John Greeve.

"Our immediate focus is on driving shareholder value by upgrading the resource at Deflector, which we hope to be able to announce before Christmas, and will underpin the Bankable Feasibility Study," he said.

See company statement below:

Australian gold-copper resources company, Mutiny Gold Ltd (ASX: MYG) ("Mutiny" or the "Company"), is pleased to announce the final results received from its recent drilling program at the Deflector Gold-Copper Deposit, the main deposit within its Gullewa Project in Western Australia. The aim of the program, of 41 holes for 3461 metres of reverse circulation ("RC") drilling was primarily to upgrade part of the existing Indicated Resource to Measured status to underpin the Bankable Feasibility Study.

Drill Results
Mutiny has received final results for all of the 41 holes drilled during its recent resource upgrade drilling program. The results are presented in Table 1 and on Figure 1. Drill-hole locations are listed in Table 2.

The results received for the resource upgrade drill program are highly encouraging. Within the area of the preliminary planned pit, seven of sixteen holes drilled into the main lode, the West Lode, returned assays of significantly higher grade than was expected from the previous intersections in adjacent holes.

Holes 10DRC25 and 26, drilled into the Central Lode (see Figure 1) also returned significantly stronger intersections than was anticipated. The other holes drilled into the Central Lode returned, overall, similar results to previous drilling.

The results are listed in Table 1 for all intersections greater than 0.5g/t Au. They include:
- 2m @ 11.9g/t Au and 0.98% Cu in 10DRC01;
- 3m @ 19.9g/t Au and 2.0% Cu in 10DRC02;
- 16m @ 15.3g/t Au and 6.0% Cu in 10DRC05;
- 10m @ 5.4g/t Au and 1.9% Cu in 10DRC06;
- 4m @ 24.9g/t Au and 10.1% Cu in 10DRC08;
- 3m @ 12.5g/t Au and 3.1% Cu in 10DRC09;
- 2m @ 27.2g/t Au and 0.42% Cu in 10DRC21;
- 10m @ 10.3g/t Au and 0.37% Cu in 10DRC 25; and
- 6m @ 16.0g/t Au and 2.2% Cu in 10DRC36.

Mutiny's independent resource consultant, Continental Resource Management, will use the results to update the resource estimate for the Deflector Deposit. The resource estimate is expected to be complete by mid-December.

Mutiny Gold Managing Director, John Greeve said the results of the upgrade drilling program were highly encouraging. "The Deflector Deposit continues to live up to and in many cases exceed our expectations. Our immediate focus is on driving shareholder value by upgrading the resource at Deflector, which we hope to be able to announce before Christmas, and will underpin the Bankable Feasibility Study," Mr Greeve said.

"Additionally we believe there is a high probability of discovering further gold-bearing deposits in the near-mine vicinity and delineating additional resources, so we are very excited about the upside potential of the Gullewa project," Mr Greeve added.

Background
The Deflector Gold-Copper Deposit contains total Mineral Resources of 3.3Mt @ 5.4g/t Gold and 0.76% Copper for 560,000oz Gold and 25,000t Copper of which Measured and Indicated Resources total 1.7Mt @ 4.2g/t Gold and 1.03% Copper for 230,000oz of Gold and 17,000t of Copper. (see Table 3). The resource was estimated in 2006.

Mutiny plans to commence production with an open pit mining operation at the Deflector Deposit, followed by underground mining after two years. The payback period from the open pit operations is estimated to be eight months based on previous mine studies. A mine scoping study is expected to be completed by the end of 2010.

It's intended that the ore will be processed at the existing Gullewa Mill (following modifications to allow the treatment of copper-gold ores). The Company also plans to process Gold Concentrate from the Company's White Well Deposit near Cue at the Gullewa Mill.