As you know, RHR has 40 million shares of MYG. MYG has been moving up and is now trading at $0.12. Their recent BFS would indicate the project is a go. Nice to see RHR with cash and what looks to be a strong investment in MYG....as well as a property in Tanzania that seems to be on CNG's radar screen. SMF069

Mutiny Gold on track for mine start up for Deflector

Thursdday, August 23, 2012 by Angela Kean

Mutiny Gold (ASX: MYG) is on schedule to soon begin mine start-up and process plant construction at its Deflector Gold-Copper Project, with the granting of additional key permits.

The bulk of permits have now been received with the recent approval of the Project Management Plans for both the treatment plant and the mining operations by the Department of Mines and Petroleum, and the haul road construction by the Shire of Yalgoo.

Earlier this month Mutiny was granted the Works Approval and Groundwater Operating Licence by the Department of Water.

John Greeve, managing director, commented on the achievement of yet another milestone: “From an early stage in the development of this project we identified permitting as a key area that required our focus and one of the main determinants to the successful, and timely, commencement of mining, which is why we started the permitting process early and committed necessary resources to it.

“We are pleased that the permitting process has occurred in a timely fashion and in line with our internal timeframes.

“We look forward to securing the last few outstanding permit approvals shortly, finalising our already well advanced mining plans and commencing mining start-up in the near future.”


Resource and grade increase

Earlier this week Mutiny reported an increase in the Deflector Resource by 61,000 ounces to 591,000 ounces (729,000 equivalent gold).

The average gold grade of the Deflector Gold-Copper resource has also increased from 5.1 to 6.4 grams per tonne (g/t) gold from the previous resource model used in the Bankable Feasibility Study.

The Deflector resource now contains JORC Resources of 2.87 million tonnes at 6.41g/t gold, 6.82g/t silver and 0.95% copper for 729,000 ounces of equivalent gold, including 591,000 ounces gold, 628,000 ounces of silver and 27,000 tonnes of copper using a 0.5g/t gold cut-off grade.


BFS – Deflector confirmed as premium, low cost gold-copper project

A Bankable Feasibility Study completed during the June quarter has confirmed Deflector as a low cost, highly profitable, premium gold-copper project.

Deflector could earn an estimated net operating cash flow of $342 million – and that is just the start.

The key financial outcomes of the study include a net operating cash flow after debt (project finance) and taxes of $171 million; EBITDA of $323 million; net profit of $171 million; a net present value at 8% of $103 million; capital costs for plant construction of $66 million; capital costs for mine construction of $21 million; and an internal rate of return of 43%.

The study paves the way for the development of the project at an initial production rate of 55,000 gold ounces equivalent (annual range 44,600 in year one to 61,612 gold ounces equivalent).

There is a forecast low average operating cash cost of $617 per gold ounces equivalent and an initial mine life of seven years.