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Company-transforming acquisition

Mutiny adds to Murchison portfolio with Gullewa project

Mutiny Gold is set to purchase the Gullewa Gold Project from Canadian Miner ATW Gold, providing it with a potential company-transforming asset with near-term production capability.

Under the agreement, Mutiny will purchase Gullewa, which lies north of Perth, for $9 million plus replacement of the bonds for 70 per cent ownership and the right to move to full ownership for a further $4 million.

Mutiny will meet the commitments by raising capital through a combination of institutional investors and rights issue to shareholders.

The Gullewa Gold Project has total resources of 650,000 ounces of gold and 25,000 tonnes of copper.

It contains one relatively undeveloped mine (Deflector), five partially mined open pits, at least five areas of historical underground workings, numerous untested soil geochemistry, gravity and aeromagnetic anomalies and existing infrastructure.

Mutiny plans to initially focus on the Deflector Deposit with the objective of completing a bankable feasibility study and commencing mining operations at the existing Deflector Pit.

John Greeve, Mutiny managing director, said the acquisition of Gullewa was a key milestone toward realising the company’s objective of becoming a profitable gold producer in the Murchison region.

“This is a very advanced project in the highly prospective Gullewa Greenstone Belt with substantial upside exploration and development potential. The Deflector is essentially a 'new mine' that previously under-performed due to the lack of a copper flotation circuit."

Mutiny entered into the Murchison region with the strategic acquisition of White Well in 2008. The company rapidly developed an economic resource on that tenement and has since commenced drilling the associated mineral targets of Bligh and Bounty.

“Our plan has always included seeking additional projects in the Murchison area to build a strong portfolio of near and longer term production opportunities. Furthermore, this acquisition is also complementary to our White Well project, with the scoping study for that project calling for the gold ore to be concentrated on site and then transported for processing”.

“We intend that Gullewa will be the processing centre for White Well as well as processing the vast wealth to be unlocked at Deflector."