ASX/Media Release P. (08) 9368 2722 F. (08) 9367 9043 E. mgl@mutinygold.com.au 18 March 2011 New High Grade Gold-Copper Extensions At Mutiny s Deflector Deposit Highlight Project s Significant Growth Potential Key Points 50% increase in mineralised length of Deflector Significant high-grade gold-copper intersections along strike from Mutiny s Deflector Deposit in WA include: 4m @ 15.9g/t Au and 2.6% Cu; 6m @ 5.1g/t Au and 2.6% Cu; 2m @ 14.5g/t Au and 5.4% Cu; 3m @ 7.3g/t Au and 3.20% Cu; 1m @ 53.5g/t Au and 0.2% Cu; and 3m @ 5.9g/t Au and 10.9% Cu. Drilling planned for Q2 2011 to further test mineralised extensions; Diamond drill program to be carried out at Deflector Deposit to upgrade existing resources within planned underground mine; Initial drill-hole into nearby Spanish Galleon Prospect intersects high-grade gold mineralisation; Further potential at Spanish Galleon and Pieces of Eight Prospects to be investigated. Australian gold-copper resources company, Mutiny Gold Ltd (ASX:MYG) ( Mutiny or the Company ), is pleased to announce that exciting new results received from its recent drilling program have highlighted the potential to significantly add to the resources at the Deflector Gold- Copper Deposit, the main deposit within its Gullewa Project in Western Australia. The aim of the program was to test the along strike extensions of the deposit s main lodes, both to the north and south of the deposit. These latest results are excellent. They show that the high-grade lodes extend at least 160m south and 100m north of the already delineated Measured and Indicated Resources that are currently the subject of a Feasibility Study into both open pit and underground mining at Deflector. This represents a 50% increase in the mineralised length of Deflector., Mutiny Gold Managing Director, John Greeve, said.
Deflector Extension Drill Results Mutiny has received the assay results from its recently completed Reverse Circulation (RC) program. The drilling was carried out to delineate near-surface extensions to the main mineralised lodes within the Deflector Deposit. The results are presented in Tables 2 and 3 for all intersections greater than 0.5g/t Au or 0.5% Cu. Drill-hole locations are shown on Figure 1 and listed in Table 5. Cross-sections of the southern-most and northern-most lines drilled in the recent program are shown in Figures 2 and 3. Results to the south of the existing Deflector resources include:: 2m @ 14.5g/t Au and 5.4% Cu in 11DRC001; 3m @ 7.3g/t Au and 3.20% Cu in 11DRC020; 1m @ 53.5g/t Au and 0.2% Cu in 11DRC021; 6m @ 5.1g/t Au and 2.6% Cu in 11DRC024; 4m @ 15.9g/t Au and 2.6% Cu in 11DRC025; and 2m @ 7.4g/t Au and 2.9% Cu in 11DRC026. To the north of the Deflector Deposit, the results include: 3m @ 5.9g/t Au and 10.9% Cu in 11DRC029; and 5m @ 2.1g/t Au and 0.25% Cu. Importantly, the recent high-grade intersections are within the depth of the planned Deflector-Pit and encourage the Company to believe that it will be extended to both the north and south. Benefits of an extended pit or of multiple open-pits include: Longer open-pit mine life; Potential increase in rate of production; Earlier pay-back of project development costs; and Improvement in the overall project economics.. Spanish Galleon Prospect Following a review of exploration by previous companies in the vicinity of the Deflector Deposit, Mutiny has recognised two areas of mineralisation to the west of the Deflector Deposit, named the Spanish Galleon and Pieces of Eight Prospects (See Figure 4). The Company recently drilled two RC holes at the Spanish Galleon Prospect that were targeted to scissor an intersection of 34m of 1.9g/t Au and 0.44% Cu made two years previously in hole 9DEF013. The intersection included 3m at 6.6g/t Au and 0.37% Cu. The holes were sited to ascertain the orientation of the mineralised structure and to test ground conditions within the structure in both the weathered and the fresh zones. Both holes intersected gold-copper mineralisation, with a best assay of 1m of 20.4g/t Au and 0.3% Cu. Assay results are given in Table 4. A cross-section showing the drill-holes is provided in Figure 5. The holes achieved their objectives and verified the presence of high-grade mineralisation within the easternmost structure at Spanish Galleon. Continuing Exploration Next Steps Mutiny will now undertake another RC drill program, planned for April this year, which will follow up recent results by drilling further north and south along the main line of the Deflector Deposit mineralisation. Following this drilling, Mutiny expects to carry out a re-estimation of the open-pitable resources of the Deflector Deposit. Historical intersections within the Spanish Galleon and Pieces of Eight Prospects will also be followed up in a systematic staged manner. In addition, Mutiny is preparing an infill diamond drill program in order to upgrade the existing underground resources.
Background The Company plans to commence production with an open pit mining operation at the Gullewa Deflector Deposit, followed by underground mining after two years. The Deflector Gold-Copper Deposit contains total Mineral Resources of 3.4Mt @ 5.4g/t Gold and 0.8% Copper for 590,000oz Gold and 25,500t Copper of which Measured and Indicated Resources total 1.5Mt @ 4.8g/t Gold and 1.1% Copper for 235,000oz of Gold and 16,500t of Copper. (see Table 1 below). For further information, please contact: Table 1 Deflector Deposit Total Resources Au Cu Cu Ag Classification Tonnes Au (g/t) (oz) (%) (t) Ag (g/t) (oz) Measured 930,000 4.3 130,000 1.3 12,000 6.8 205,000 Indicated 570,000 5.7 105,000 0.8 4,500 5.6 105,000 Inferred 1,900,000 6 350,000 0.5 9,000 3 200,000 Totals* 3,400,000 5.4 590,000 0.8 25,500 4.7 510,000 * Note: Totals may appear incorrect due to appropriate rounding John Greeve David Brook Managing Director Professional Public Relations Mutiny Gold Limited Tel: +61 (0) 8 9388 0944 Tel: +61 (0) 8 9368 2722 Mob: 0415 096 804 Em: mgl@mutinygold.com.au Em: david.brook@ppr.com.au
Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
Table 2 Drill-hole Assay Results for Southern Extension HOLE FROM TO INTERVAL Au Cu INCLUDING (m) (m) (m) (g/t) (%) 11DRC001 30 31 1 0.80 0.17 and 36 39 3 0.53 0.52 and 103 105 2 14.5 5.41 104-105m: 1m @ 25.4g/t Au, 6.6% Cu and 115 118 3 2.61 0.82 11DRC002 10 11 1 0.60 0.19 11DRC003 37 38 1 1.00 0.51 and 97 98 1 0.58 0.31 and 101 102 1 3.60 0.72 and 104 105 1 1.42 1.58 11DRC004 25 26 1 0.56 0.06 and 56 58 2 2.01 3.15 11DRC005 24 26 2 1.43 0.32 and 83 86 3 1.13 0.68 11DRC006 35 36 1 0.67 0.28 and 50 52 2 0.60 0.07 11DRC008 10 11 1 1.06 0.19 and 29 31 2 1.18 0.29 and 39 40 1 4.96 1.17 11DRC009 30 33 3 3.86 0.59 31-32m: 1m @ 10.3g/t Au, 1.1% Cu and 78 79 1 0.60 0.19 11DRC010 35 36 1 0.54 0.45 and 58 60 2 1.76 1.66 11DRC011 14 15 1 2.37 0.45 11DRC012 54 60 6 1.11 0.34 11DRC013 34 38 4 0.38 0.83 and 52 53 1 1.00 1.11 and 67 68 1 0.85 0.15 and 81 82 1 3.46 2.06 and 106 107 1 0.52 0.30 11DRC014 88 90 2 1.82 0.44 11DRC015 12 13 1 8.08 0.62 and 17 19 2 0.73 0.18 11DRC016 40 42 2 0.90 0.20 11DRC017 81 83 2 2.87 1.08 and 96 97 1 6.59 3.06 11DRC018 25 26 1 1.02 0.06 11DRC020 54 57 3 7.28 3.24 54-56m: 2m @ 10.1g/t Au, 4.1% Cu and 68 70 2 4.28 0.08 11DRC021 16 17 1 53.5 0.17 and 82 84 2 2.47 0.62 and 87 88 1 8.63 3.01 11DRC023 28 30 2 0.73 0.18 and 43 44 1 0.70 0.13 11DRC024 50 51 1 1.47 0.37 and 53 54 1 1.66 0.28 and 57 63 6 5.13 2.58 57-61m: 4m @ 6.5g/t Au, 3.2% Cu 11DRC025 58 59 1 3.53 0.02 and 82 86 4 15.9 2.62 84-85m: 1m @ 59.9g/t Au, 4.5% Cu 11DRC026 92 93 1 1.77 0.91 and 107 109 2 7.44 2.87 107-108m: 1m @ 14.1g/t Au, 5.2% Cu
Table 3 Drill-hole Assay Results for Northern Extension HOLE FROM TO INTERVAL Au Cu INCLUDING (m) (m) (m) (g/t) (%) 11DRC028 16 18 2 1.27 0.29 and 21 22 1 0.90 0.63 and 46 47 1 0.50 0.01 11DRC029 56 59 3 5.88 10.9 56-58m: 2m @ 7.90g/t Au, 15.1% Cu 11DRC030 27 28 1 0.72 0.31 11DRC031 43 48 5 2.11 0.25 Table 4 Drill-hole Assay Results for Pieces of Eight Prospect HOLE FROM TO INTERVAL Au Cu INCLUDING (m) (m) (m) (g/t) (%) 11PERC001 63 66 3 7.80 0.17 63-64m: 1m @ 20.4g/t Au, 0.3% Cu 11PERC002 85 91 6 0.81 0.47 Table 5 Drill-hole Details NORTH EAST NORTH RL (LOCAL) (GDA94) (GDA94) (m) HOLE EAST (LOCAL) DEPTH (m) DIP ( o ) AZIMUTH (LOCAL) 1 11DRC001 9820 19021 439152 6828341 279 132-56 271 11DRC002 9800 19001 439124 6828338 279 36-60 271 11DRC003 9815 19001 439136 6828328 279 126-59 270 11DRC004 9830 19001 439148 6828319 279 72-60 270 11DRC005 9806 18981 439116 6828318 279 102-59 273 11DRC006 9821 18981 439128 6828309 279 66-60 269 11DRC007 9835 18981 439139 6828300 279 84-59 271 11DRC008 9790 18960 439091 6828311 279 78-59 270 11DRC009 9804 18960 439102 6828302 279 102-59 270 11DRC010 9820 18960 439114 6828293 279 90-59 270 11DRC011 9786 18939 439075 6828298 279 36-60 273 11DRC012 9801 18939 439087 6828288 279 72-61 271 11DRC013 9816 18939 439099 6828279 279 132-61 271.5 11DRC014 9846 18939 439122 6828261 279 132-60 270 11DRC015 9775 18920 439055 6828289 279 48-60 270 11DRC016 9795 18920 439071 6828277 279 84-60 270 11DRC017 9834 18920 439102 6828253 279 114-60 273 11DRC018 9784 18900 439049 6828268 279 60-60 268 11DRC019 9768 18900 439037 6828278 279 42-60 267 11DRC020 9814 18900 439073 6828249 279 90-60 270.5 11DRC021 9829 18900 439085 6828240 279 120-60 270 11DRC022 8790 18880 439042 6828249 279 42-60 269.5 11DRC023 9791 18859 439030 6828231 279 60-60 268 11DRC024 9806 18859 439042 6828222 279 66-60 269 11DRC025 9821 18859 439054 6828213 279 90-60 269 11DRC026 9836 18859 439065 6828203 279 114-60 269.5 11DRC027 9852 18859 439078 6828194 279 138-60 271 11DRC028 9800 19601 439493 6828811 279 60-60 91 11DRC029 9780 19601 439478 6828823 279 102-60 88 11DRC030 9798 19580 439478 6828795 279 66-60 90 11DRC031 9782 19580 439466 6828804 279 75-60 91 11PERC001 9407 18600 438568 6828264 279 102-60 269 11PERC002 9431 18600 438587 6828249 279 156-60 270.5 1 : Local azimuth is 38 o less than UTM azimuth
Competent Persons Statement: The geological information in this report which relates to Exploration Results and Mineral Resources is based upon information compiled by Mr J.J.G. Doepel, B.Sc (Hons), GradDipForSc, Dip Teach, Principal Geologist of Continental Resource Management Pty Ltd. Mr Doepel is a member of the Australasian Institute of Mining and Metallurgy and has sufficient expertise and experience which is relevant to the style of mineralisation and to the type of deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Doepel consents to the inclusion in the report of the matters based on his information in the form and context in which they appear. Forward Looking Statements All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Mutiny Gold Limited (Mutiny) are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as may, could, believes, estimates, targets, expects or intends and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the company, its directors and management of Mutiny, that could cause Mutiny s actual results to differ materially from the results expressed or anticipated in these statements. The company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Mutiny does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements.