Widgie South Project

Widgiemooltha Nickel District, WA

Project Highlights:

• Strong mineralization potential
• World class nickel sulphide producing location
• Three known nickel sulphide deposits in close proximity
• TEM surveys have indicated the presence of a conductor with an intensity similar to conductors associated with known nickel mineralisation
• George’s Anomaly confirmed to have steep dip within Mutiny tenement;

Mutiny has a farm-in agreement to earn a 51% interest in the highly prospective Widgie South Prospect. Once the 51% has been earned, the Company retains the right to acquire the balance of the Project for $700,000.

The Farm-In Agreement allows Mutiny to conduct exploration over tenement E15/1025, which lies approximately 2km to the southeast of the township of Widgiemooltha. The Project lies within the Widgiemooltha komatiite which is host to world class nickel sulphide ore bodies having produced over 83,000 tonnes of Ni metal.

During the second quarter of 2010, Mutiny continued development of the Prospect through the completion of a follow-up TEM survey designed to define the shape and characteristics of the George’s Anomaly, a conductor located by the previous TEM survey commissioned by the vendor of the tenement. Both surveys were carried out by GPX Surveys Pty Ltd (GPX).

Mutiny’s confidence in the mineralisation potential of the tenement is based on the following;

• It is located within a world class nickel sulphide producing region;
• It is within the Widgiemooltha Dome, which hosts a number a nickel sulphide deposits, including Mariners and Redross;
• It covers a portion of an ultramafic unit that contains three known nickel sulphide deposits in close proximity (Widgie 3, Gillet, and Widgie Townsite) (see Figure 1).

The follow-up TEM survey confirmed that the conductor defined by the initial survey has a steep dip and is confined to Mutiny’s tenement. Further, its intensity is similar to that of conductors that are associated with the Gillet nickel sulphide mineralisation immediately to the west. During 2007 Consolidated Minerals Limited (CML) drilled its Gillet Prospect and intersected west dipping nickel sulphide mineralisation.

GPX constructed a Conductivity Depth Image along the survey line that delineated George’s Anomaly (Figure 2). The image indicates that the anomaly extends over a width of more than 200m and is present between 150m and 350m below surface. The conductor is interpreted to be down dip from an interflow sedimentary horizon that outcrops as a chert band.

Mutiny intends to commence drill-testing of the anomaly as soon as possible, to confirm that it contains nickel sulphide mineralisation. Following the initial drilling, Mutiny plans to carry out down-hole EM, to enable later drill-holes to be more effectively targeted.

A native title heritage clearance by the Goldfields Sea and Land Council has been completed. The findings of the heritage clearance confirmed that there are no native title impediments to conducting ground penetrative work within the vicinity of the exploration target known as the "George Anomaly". The Company has also completed a secondary native title clearance for the remainder of the tenement which will allow Mutiny to actively assess the gold potential of the entire tenement.