THE WA Department of Mines and Petroleum has given Mutiny Gold the green light for its Deflector copper-gold project in the Murchison region, clearing the way for mining operations to begin.
In an ASX release, Mutiny managing director John Greeve said that with the approvals process complete, the company could now focus on implementing plans leading into production.
Following a definitive feasibility study (DFS) carried out late last year, Deflector has been highlighted as a highly profitable, low-cost project with significant gold recoveries of a high grade.
The DFS forecast that Deflector would generate a profit of $223 million, with an initial production rate of 65,000 ounces of gold equivalent.
The initial mine plan allows for a seven- and-a-half-year mine-life, beginning
with a two-year open pit operation
followed by five-and-a-half years
In early December last year, Mutiny entered a $41 million financing deal for Deflector with Canadian-based Sandstorm Gold, through a metals purchase agreement (MPA).
According to Mutiny, the MPA was designed to complement the “more traditional” bank-provided project finance, which would collectively meet most of the company’s funding requirements for the development of Deflector, and its associated infrastructure.