Mutiny Gold Limited - Expanded Drill Program at Mutiny`s Deflector Deposit

Sydney, Australia (ABN Newswire) - Feb 3, 2012 - Mutiny Gold Ltd (ASX: MYG) is pleased to provide an update to the current drilling program underway at the Company's flagship Deflector deposit. On December 8th 2011 Mutiny Gold commenced a new 12,000m RC & Diamond Drill Program aimed at further increasing the Deflector resource base. Mutiny currently has one RC rig and one diamond rig operating on site full time, with a contingent of eight geologists and field assistants managing and supporting the work. The program includes both extensional and infill drilling at Deflector, as set out in an ASX Announcement on December 16th 2011.


Expansion of Proposed Drilling Program

The Company has recently elected to expand the 12,000 metre program by a further 3,000 meters with two short programs of verification drilling. This drilling addresses two separate areas of the current resource estimate with the view of providing additional support to the Definitive Feasibility Study.

The first is a series of 12 relatively shallow (40-90m) HQ diamond holes in the upper oxide/transition portion of the resource. This drilling will provide resource estimate support for an area of historical drilling which is lacking the original assay data in the database, or is missing copper and/or silver assay data. In addition, this drilling will provide additional sample material for metallurgical testwork.

The second is a series of 12 deeper NQ diamond holes with RC pre-collars, which in-fill a 125m by 100m test panel in a high grade portion of the west lode primary resource from 40x40m to 20x20m pierce point spacing. This drilling will be used to confirm geological and grade continuity assumptions for the DFS resource estimate.


Definitive Feasibility Study Expanded to Include Results from Existing Drilling Program

Mutiny is targeting completion of project finance by June, and this will require a completed Definitive Feasibility Study (DFS). Whist the DFS was originally targeted for completion in March/April the company is now planning to delay completion so that information from the expanded drill program can be incorporated into the study. The DFS is a complex document and one of the most important in the road to production. The company considers this a positive outcome as the result of delay in the DFS completion by as little as 2-3 months will strengthen the DFS whilst still enabling the company to meet the project finance timetable.

Mutiny believes the mineral resources for Deflector to be robust based on the drilling results completed to date, which have been over a period of some 20 years. Mutiny does not have access to all the historical drilling source data, which is not an uncommon occurrence. This additional drilling is designed to validate the existing database records.

This work reflects Mutiny's determination to 'get it right first time' in regards to the Deflector Resource Estimate, and its DFS.


Progress to Date

Drilling progress to date is shown in Table 1 below. Currently all 12 shallow HQ diamond holes have been drilled and 25% of the samples have been submitted for assay. 11 of the 12 deep NQ infill holes have been drilled and 50% of samples submitted for assay. Significant progress has also been achieved in the West Lode, North and Central Lode drilling areas.

In total, some 5,738m of drilling has been achieved out of a total plan of 15,310m in 30 days. Given that stoppages have been experienced due to lightning this is an excellent drilling rate.


Results and Schedule

First assays are expected from the assay laboratory in early February. The infill program assay data is programed to be complete by end February for input into the DFS resource estimate. Remaining resource extension drilling will occur over February-March with results expected to be received by end April.


Background

The Company plans to commence production in late 2012 with an open pit mining operation at the Deflector deposit, followed by underground mining after two years.

The Deflector Gold-Copper deposit contains total Mineral Resources of 3.4Mt @ 4.9 g/t Gold, and 0.85% Copper for 530,000oz gold, and 29,000t copper, of which Measured and Indicated Resources total 2.1Mt @ 5.2g/t gold and 1.1% copper for 350,000oz of gold, 490,000oz silver and 22,000t of copper.

For the complete announcement including tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-MYG-576897.pdf


About Mutiny Gold Limited:

Mutiny Gold (ASX:MYG) is a diversified resource company focused on the exploration and development of its flagship Deflector gold / copper project, within the Gullewa tenements located in the South Murchison region of Western Australia.

The Company also has significant nickel tenements in Western Australia as well as iron ore potential at its Gullewa tenements.

Mutiny plans to commence production in 2012 with an open pit mining operation at the Deflector Deposit, followed by underground mining after two years.



Contact:

Mutiny Gold Limited
T: +61-8-9368-2722
F: +61-8-9367-9043
www.mutinygold.com.au