Mutiny Gold Limited (ASX:MYG) Announce Further High Grade Gold Intersections at Deflector North

Perth, Aug 24, 2011 AEST (ABN Newswire) - Australian gold-copper resources company, Mutiny Gold Limited (ASX:MYG) ("Mutiny" or the "Company"), is pleased to announce significant new high-grade gold intersections that now extend defined high-grade mineralisation 160m to the north of its current Measured and Indicated Resources within the West Lode of its Deflector Gold Deposit.

The latest results were received from the final 15 holes of Mutiny's recently completed RC drilling program into the Deflector Deposit extensions. These results will be incorporated into the revised resource estimation, which is expected to be released in the coming months.

Results were also received for the 16 RC holes drilled into the Spanish Galleon Prospect. Deflector Extension Drill Results The drilling was carried out to explore both to the north and south of the main known area of mineralisation at the Deflector Deposit. The results are presented in Tables 2 and 3 (see link at the bottom of the release) for all intersections greater than 0.5g/t Au or 0.5% Cu.

Western Lode intersections to the north of the existing Deflector resources include:

- 7m @12.8g/t Au and 1.1% Cu from 116m in 11DRC078;

- 3m @5.7g/t Au and 1.9% Cu from 80m in 11DRC079;

- 2m @10.7g/t Au and 0.0% Cu from 132m in 11DRC080;

- 4m @5.3g/t Au and 0.9% Cu from 73m in 11DRC081; and

- 6m @37.5g/t Au and 7.8% Cu from 102m in 11DRC083.

Cross-sections of lines 19520N and 19640N, which include newly reported holes within the northern extension to the West Lode.

Commenting on the results, Mutiny's Managing Director, John Greeve said "The results from the northern extension drilling are very positive and have increased our confidence that significant economic mineralisation will be added to this area. This mineralisation will be quantified in the next round of mine feasibility study work."

"We believe the results have also strengthened the potential for the discovery of continued high-grade mineralisation below the base of the RC drilling and to the north of the existing diamond drilling, between 19500mN and 19660mN" Mr Greeve added.

Spanish Galleon Prospect

Six targets were RC drill tested at the Spanish Galleon Prospect, which is located between 400m and 700m to the west of and parallel to the Deflector mineralisation. The holes were partly sited to follow-up relatively shallow gold intersections made by previous explorers.

Combined with geological logging of drill spoil from historical shallow drilling, the first pass drill results have further refined the character of these gold-copper targets. Current interpretation of these encouraging results indicates at least four mineralised zones within an intrusive body of granodioritic to dioritic composition, a sheared ultramafic unit (9m @ 1.3g/t Au and 0.5% Cu), a basalt (previously reported 3m @ 7.8g/t Au and 0.2% Cu), and a pyrrhotitic black shale. The mineralisation appears to be associated with contacts between these units and with a magnetite-sericite-quartz-biotite alteration zone within the intrusive body. Intersections within this intrusion include 4m @ 3.3g/t Au and 0.3% Cu and wider gold-copper zones (29m at 0.9g/t Au and 0.6% Cu and 18m at 1.0g/t Au and 0.5% Cu).

Important points regarding the potential of the Spanish Galleon Prospect include:

- The lode positions are open below the current shallow drilling and are open on strike to the NE and SW.

- The intrusive alteration aureole related mineralisation encountered so far (e.g. 18m at 1.0g/t Au and 0.5% Cu from 39m down-hole in 11SGRC003 and 29m at 0.9g/t Au and 0.6% Cu from 34m down-hole in 11SGRC009) has been interpreted over a zone measuring greater than 400m by 200m.

The results are presented in Table 4 (see link at the bottom of the release) for all intersections greater than 0.5g/t Au or 0.5% Cu.

Background

The Company plans to commence production 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 Limited announcement including figures and tables, please view the following link:
http://media.abnnewswire.net/media/en/docs/ASX-MYG-554207.pdf

Contact

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