Mutiny Gold Limited (ASX:MYG) Announce Further Encouraging Drilling Results From Deflector Deposit

Perth, June 1, 2011 AEST (ABN Newswire) - Australian gold-copper resources company, Mutiny Gold Limited (ASX:MYG) ("Mutiny" or the "Company"), is pleased to announce that results received from the first 15 holes of its ongoing drilling program which recommenced in early May have again added length to the Deflector Deposit mineralisation. These results will be incorporated into the revised resource estimation to be carried out at the conclusion of the current RC and diamond drill programs.

The results, from holes drilled on three lines immediately to the south of the known West Lode mineralisation, have extended the known length of the mineralisation by 60m, bringing the total Deflector strike length to at least 800m.

Deflector Southern Extension Drill Results

Mutiny has received the assay results from the first 15 holes of its Deflector Southern Extensions (Area 1) Reverse Circulation (RC) program which commenced on 6 May. The drilling was carried out to delineate near-surface extensions to the main West Lode to the south of the Deflector Deposit. The results are presented in Table 2 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 3. Cross-sections of the three lines drilled in the recent program are shown in Figures 2, 3, and 4. (see link at the bottom of the release)

Results to the south of the existing Deflector resources include::

- 6m @ 2.7g/t Au and 0.7% Cu in 11DRC035;

- 3m @ 5.7g/t Au and 0.4% Cu in 11DRC036;

- 8m @ 3.0g/t Au and 0.9% Cu in 11DRC038;

- 3m @ 6.7g/t Au and 1.0% Cu in 11DRC040;

- 7m @ 2.7g/t Au and 0.1% Cu in 11DRC041; and

- 1m @ 3.6g/t Au and 5.8% Cu in 11DRC042.

Outcome of Drill Program

- A further 10% (approximately) increase in the mineralised zone confirming the Company's expansion target of between 1.65M to 2.5M ounces of Gold is on track.

Initial resource upgrade from current drill program is scheduled for August .

- Increased mineralised length provides opportunities to boost production rates, extend open pit mine life and enhancing project economics

- Mutiny's Deflector Regions drill program (as announced on 6th of May) is ongoing with three drill rigs fully deployed on site.

Supporting Field Work

Two programs of field work have been commissioned to assist this and future exploration programs.

1. A surface geological mapping and interpretation program is being conducted in the Deflector area. This information will be used to improve the targeting of the drilling programs.

2. A regional mobile metal ions (MMI) program, which will be "calibrated" against the known mineralisation in the area, will be used to assist in the identification of new exploration targets.

The mobile metal ions technique is a sophisticated geological technique which is often used to identify new exploration targets. Mutiny is using the MMI survey over areas where exploration drilling will soon commence to gain a better understanding of the geology of the Deflector environs.

Over the years with a number of different owners of the Gullewa leases, many drill cores and RC chip samples were produced. Mutiny geologists have commenced re-logging the cores, as there has not previously been a consistent method used to log these valuable sources of information.

When this is accomplished, Mutiny expects to produce a much better geological model of the area.

Further drilling is planned to focus on the historical end-of-hole data as the program is targeting geological anomalies in fresh rock rather than supergene anomalies.

The Company will use the results to develop 2D models of the geological structures at Spanish Galleon, an area of high-grade mineralisation to the west of the Deflector Deposit.

Background

The Company plans to commence production in late 2012 with an open pit mining operation at the Deflector Deposit, followed by underground mining after two years.

The currently known Deflector Gold-Copper deposit contains Mineral Resources of 3.4Mt @ 5.4g/t gold, 4.7g/t silver and 0.8% Copper for 590,000oz gold, 510,000oz silver and 25,500t copper of which Measured and Indicated Resources total 1.5Mt @ 4.8g/t gold, 6.4g/t silver and 1.1% copper for 235,000oz of gold, 310,000oz silver and 16,500t of copper.

For the complete Mutiny Gold announcement including figures and tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/67730-ASX-MYG-543625.pdf

Contact

John Greeve Managing Director Mutiny Gold Limited Tel: +61-8-9368-2722 Email: mgl@mutinygold.com.au