finance, page-54

Mutiny books $11M profit on gold hedging
Retiring short-term debt
Drilling to expand Deflector Resource
Highlights:
? $11m profit on strategic gold transaction
? Bank Credit approval gained for half Project Loan
? Expanded drill programme outlined
? Project Update
? Negotiations on Off-Take Agreements for floatation concentrate close to finalisation
Mutiny Gold Ltd (ASX: MYG) is pleased to provide the market with an update on funding and drilling activities.
HEDGING RATIONALISATION
The Company has booked a profit of $11m following a recent strategic gold transaction.
Taking advantage of the recent weakness in gold prices, Mutiny, in conjunction with adviser Noahs Rule and a
$75m gold buying facility provided by Credit Suisse, traded in the gold market of the London Metals Exchange and
purchased 50,000oz of gold at an average price of $1,491/oz.
The strategic acquisition will enable Mutiny to deliver the recently acquired gold into the current 50,000oz hedge
put in place in December 2011 (ASX Announcement 05/12/11) resulting in Mutiny achieving a total gain of $11m.
This profit will be used to repay an existing $11m short-term Credit Suisse loan.
The three key considerations behind the Mutiny Directors’ decision to take this course of action were:
1. The Company believed that the 2011 hedges had served their purpose and Mutiny had maximised their
value;
2. Ongoing economic instability in Europe and America - plus the growing potential for a resumption of
hostilities on the Korean Peninsula and the impact these would have on global market sentiment - are
expected to see the gold price rally from its current low levels; and
3. The Company has an opportunity to use the profit to reduce short-term debt and simplify its balance
sheet as part of completing its project financing agreements.10 April 2013
Page 2
Mutiny’s Managing Director John Greeve said the short-term loan provided by Credit Suisse had provided
important momentum for the Company.
“The $11m loan allowed us to complete the purchase of the Deflector Gold project from ATW Gold Corporation
Ltd and fund the highly successful drill programmes and Feasibilities Studies at Deflector.”
“The hedge developed in December 2011 was an important component of the facility agreement with Credit
Suisse and it is strategically significant that the Company has improved its balance sheet in anticipation of securing
a Senior Debt Funding Agreement for project financing.”
“We believe that the value of the Deflector Gold project has increased significantly since we negotiated our initial
short term loan, and hedging position. By using the profits from this transaction to retire our short term debt, we
have an opportunity to simplify our funding arrangements and reduce the level of financial exposure to our
lenders.”
PROJECT FUNDING
Mutiny is pleased to advise that it has made substantial progress in attaining bank approval for a Senior Debt
Funding Agreement. One bank has received credit approval for its 50% share of the debt funding package, two
banks are very close to reaching agreement on commercial terms, whilst an additional bank has expressed interest
in participating in the financing agreement.
The project finance loans are in addition to the previously announced US$43m Metals Purchase Agreement
funding from Canadian institution Sandstorm Gold Ltd.(ASX 06/12/2012), who remain fully supportive of the
project and the Company.
DEFLECTOR DRILLING PROGRAMME
Mutiny is pleased to announce that it intends to significantly expand the scope of its 2013 Deflector drilling
programme. The expanded programme is aimed at increasing the ounces to support a potential increase of gold
production from 70,000oz per annum to over 105,000oz per annum by year three.
“We are confident that we can boost our gold resources by conducting step out drilling to identify new areas of
gold mineralisation close to the mine. Our objective by expanding our 2013 drilling programme is to enable the
Company to support a larger, longer life and more economically robust gold mining operation at Deflector”, Mr
Greeve said.
Supported by the previously announced structural interpretation studies and a planned Sub Audio Magnetic
(“SAM”) survey exploration programme, the proposed drill programme will target an increase to the current
Deflector Deposit resource of 2.86mt at 6.4g/t gold, 6.8g/t silver and 0.9% copper for 591,000 ounces gold, 10 April 2013
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629,000 ounces silver and 27,000 tonnes of copper. That resource (Table 1) to date has been defined over 900
metre of strike length, and is interpreted to be open at depth and along strike.
The 2013 expanded drilling programme will include 4,000m of diamond and reverse-circulation drilling, up from
the 3,000m announced in February 2013, to target high-grade grade extensions of Deflector, which the Company
believes have the potential to provide significant increases to the current resource base.
The three priority target (Figures 1 and 2) areas are:
High-Grade Southern Plunge Extension – new drilling will target the high-grade southern plunge down to 0mRL
(280m below surface), which also aligns with planned development. Drilling will also target potential intersecting
splays located to the west which have previously demonstrated bonanza-grade gold and copper values including
[email protected]/t Au and 1.5% Cu and [email protected]/t Au and 2.4% Cu.
Central & Contact Lode Depth Extensions – Mutiny will test an under-drilled panel 200m in length to the 100mRL
(180m below surface). Exploration success should lead to an increase of open pit and underground life of mine.
Deflector North Strike Extensions – new drilling will follow up RC intersections from the 2012 campaign including:
1m @ 13g/t from 51m and [email protected]/t from 43m, which indicated mineralisation continues north of the dolerite
dyke. Drilling will target shallow oxide mineralisation to ascertain open pit potential.


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