KALGOORLIE (miningweekly.com) – The new management team of ASX-listed Mutiny Gold on Monday released a new mine plan for the Deflector gold/copper/silver project, in Western Australia, based on a decreased output.

In 2013, an updated definitive feasibility study (DFS) into the Deflector project reduced the project’s projected capital requirements by some 32%, to A$62-million, based on production of 80 000 oz/y over the project’s mine life.

Mutiny MD Tony James said on Monday that the company had now simplified the mine plan to reflect the nature of the orebody.

“Over the last couple of months the new management team has completely reviewed this project, beginning with the geology and the rock type and conditions, and then shaped a plan around what we could physically see and understand,” James said.

He noted that fundamentally, the Deflector mine was a shallow, narrow vein, high-grade underground mine.

With the results of the DFS in mind, Mutiny took the decision to reduce the size of the proposed openpit volumes by some 80%, with the expected throughput revised to an optimal underground production rate of 380 000 t/y reducing yearly production to around 63 000 oz of gold, 2 662 t of copper and 60 000 oz of silver.

“The purpose-built processing facility that will now be constructed for the Deflector mine will be based on the optimal underground production rate achieved of 380 000 t/y. The underground mine equates to 80% of the value,” James said.

Capital cost requirements for the project have now been estimated at A$67.6-million, with the project expected to have a net present value of A$111-million and an internal rate of return of 50%.

All-in sustaining costs have also been lowered from the A$801/oz estimated in the updated DFS to A$723/oz

James said that the company had also completed a detailed technical review of the exploration strategy at the Gullewa gold project, and had identified the logical order for the exploration targets.

“The immediate focus of the company will be on the 7-km-long Deflector corridor, which is effectively untested and under-explored outside of the upper parts of the Deflector orebody,” he added.

The company would also focus on achieving full project funding, with a view to start project development as soon as possible.

James said that a number of banks and financial institutions have expressed interest in the project, and it was expected that, with the release of the new mine plan, and the confirmation of the robust project economics, financing could be achieved.