Mutiny Gold Readies for Construction Kickoff of Deflector Project in Western Australia

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Researched by Industrial Info Resources Australia (Perth, Australia)--Mutiny Gold Limited (ASX:MYG) is gearing up for construction at its Deflector gold/copper processing plant in July 2013. The project, which is about 78 kilometres east of remote Western Australian town of Mullewa, received its final government approval from the Western Australian Department of Mines and Petroleum in early February 2013. Mutiny Gold will reopen and refurbish the existing Gullewa processing plant, and install a new crushing and flotation circuit.

The plant was mothballed in 2003 and was acquired by Mutiny Gold in 2010 from Canadian miner ATW Gold Corporation (TSX.V:ATW). Following refurbishment, the plant will have the capacity to process an estimated 480,000 tons of ore per year, producing approximately 65,000 ounces of gold.

A definitive feasibility study (DFS) was completed by Mutiny Gold in October 2012, and company has chosen engineering and consulting firm GR Engineering (ASX:GNG) (Perth) as the engineering, procurement and construction services supplier for the project. GR Engineering was actively involved in the execution of the DFS and provided design and engineering services for the processing plant design. GR already has commenced office mobilisation of key personnel, procurement of long-lead equipment items, and the preliminary engagement of subcontractors and site work planning. A majority of the long-lead items, including a 1,300-kilowatt ball mill, was ordered in September 2012 to avoid future possible delays in project completion.

Mutiny Gold charted out a total investment of $102 million for the Deflector project, which involves the construction of a 140-man camp, which will add to the existing 22-man camp, and an 8-megawatt (MW), diesel-fired power station.

Mutiny Gold expects to complete the refurbishment by the third quarter of 2014 with production possibly beginning by the end of 2014. The company plans to mine through the open pit for the first two years, followed by an underground development for another five years. John Greeve, Mutiny Gold's managing director, said that with the completion of the approvals process, Mutiny's project team can now focus on implementing the Deflector Project plans, leading to mining and production.

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