Mutiny Gold secures approval for Deflector gold, copper project in Australia
Australian gold, copper focused exploration and development company Mutiny Gold has secured the final government approval to start mining at its flagship Deflector gold-copper project in the mid-west region of Western Australia.
The deposit is located within the company's Gullewa tenement package in the South Murchison area.
The mining proposal for the project was approved by the WA Department of Mines and Petroleum (DMP) and is subject to the payment of security bonds.
Mutiny Gold managing director John Greeve noted that with all approval processes completed, the company can focus on implementing the Deflector project plans leading into mining and production.
A comprehensive definitive feasibility study (DFS) completed on the Deflector project in the fourth quarter of 2012 stated that it was a low-cost, high gold grade operation with significant scope for expansion.
According to the DFS estimates, the company is expected to earn profits of A$223m ($229m) from initial production, which is predicted at 65,000oz Au equivalent gold (Eq), with an a low average operating cost of A$618 ($637) per oz Au Eq over an initial mine life of seven and a half years.
Production will begin at 480,000t a year in the open pit for the first two years.
The operation will then continue underground at an initial production of 380,000t per annum, which will result in total production of 391,000oz gold, 18,000t of copper and 396,000oz of silver.
Receipt of the mining proposal approval was key towards completing the bank project finance with Credit Suisse and other banks.
Currently, the deposit contains resources of 729,000oz Eq including 591,000oz gold, 27,000t of copper and 629,000oz silver.