Below ex pro active investors, who are bullish on MYG and i...

Below ex pro active investors, who are bullish on MYG and i don't blame them. A remodelling in a revised DFS is taking place now.

Spoke with the company and they seem to be more concerned about getting it right the first time than rushing like others and screwing the project up. Today's announcement should prove we are marching towards production now.

New drilling program to commence next yr also, im sure 100k plus after a few years will be on the cards.



Mutiny Gold acquires ball mill for Deflector, looks for increase in gold production
Monday, September 17, 2012 by Proactive Investors
Mutiny has taken another step towards gold production at the low cost, premium return Deflector gold copper mine - with the purchase its first ball mill. Mutiny is currently modelling a significant increase in gold production at the project. Mutiny has taken another step towards gold production at the low cost, premium return Deflector gold copper mine - with the purchase its first ball mill. Mutiny is currently modelling a significant increase in gold production at the project.

Australian gold-copper resources company, Mutiny Gold (ASX:MYG) has signed a letter of intent with Citic HIC Australia to purchase its first ball mill for the Deflector Project in Western Australia’s Mid-West Region.

The Deflector resource contains JORC Resources of 729,000 ounces of equivalent gold.

The letter of intent commissions Citic to commence stage 1 of the design and engineering process for the Deflector Project’s ball mill - with work to start immediately.

Mutiny has identified the first 1300kW ball mill as the critical path, long lead time item for the Project and recognised the potential gains in project timeframes by pre-ordering and securing its place in the manufacturer’s queue.

John Greeve, managing director for Mutiny, said the decision to purchase the ball mill from Citic was made after an extensive review process which included independent analysis by renowned gold plant specialists GR Engineering Services.

“We are now firmly on our committed path to commence significant gold production at our low cost, premium return Deflector gold-copper mine.

“After conducting extensive studies that have highlighted the commercial robustness of our project, the Deflector team is now commencing the production ready phase and view this ball mill order as Mutiny again making significant strides forward in our long term plan to be a significant gold and copper producer."


Mutiny modelling a significant increase in gold production

Mutiny is currently modelling a significant increase in gold production at Deflector following the recently announced upgrade to the resource.

The August 2012 Deflector resource model represents an increase of 61,000 gold ounces, and a 26% increase of average gold grades when compared to the previous model used in the recently released Bankable Feasibility Study.

For the processing plant to meet the expected production increase, the company foreshadows commencing production with one ball mill due to the ore being softer and hence faster to process, in the first two years and then at the end of year two - increasing processing capacity by installing a second twin mill.


Analysis

The Bankable Feasibility Study confirmed Deflector to be a low cost, highly profitable Gold Copper Project with an estimated low average Life of Mine Cash Operating Cost of $617 per ounce gold equivalent.

Mutiny has a Resource target of 2.5 million ounces at Deflector, indicating significant potential upside in NPV and value accretion for shareholders.

There are key value adding milestones and news flow ahead for Mutiny including:

- Transformation of current resource to greater reserves
- Increase forecast annual production rate
- Increase in forecast annual profit
- Completion of project finance

Mutiny Gold has been a strong share market performer, doubling in share price since June. We don't see any reason why this should not continue over the next 6-12 months.