Highlight Results

  • Excellent intercept confirming high-grade gold-silver at the western end of the El Refugio resource area with first drilling on section 800
    • 5.83m @ 15.7 g/t gold, 474 g/t silver from 91.77m, (CDH-140), including
    • 1.81m @ 45.5 g/t gold, 1,387 g/t silver from 93.77m
  • CDH-140 is along strike from CDH-094 which intercepted 18.67m @ 9.64 g/t gold, 279 g/t silver from 144.0m and further supports the high-grade gold-silver on the western side of El Refugio
  • Additional drilling on section 600 filled a down dip area and demonstrates the size of the El Refugio structure with broad 62.4m wide mineralised intercept which includes
    • 5.49m @ 2.54 g/t gold, 23.8 g/t silver from 292.51m, (CDH-141), including
      • 1.00m @ 7.09 g/t gold, 60.5 g/t silver from 292.51m, and including
      • 1.00m @ 4.04 g/t gold, 20.2 g/t silver from 297.00m, plus
    • 4.00m @ 1.35 g/t gold, 47.6 g/t silver from 276.00m, plus
      • 2.00m @ 0.82 g/t gold, 27.7 g/t silver from 317.00m, plus
      • 2.00m @ 0.98 g/t gold, 30.5 g/t silver from 325.00m, plus
      • 1.00m @ 0.94 g/t gold, 22.8 g/t silver from 331.00m, plus
      • 1.80m @ 1.67 g/t gold, 54.8 g/t silver from 292.51m
  • Drilling has been completed at the eastern end of El Refugio with good observations in drill core and samples dispatched for assay
  • A drill core relogging programme has commenced for future resource modelling work
  • Study work progressing to optimise a development at El Refugio including a stage one access via a 300m adit to a zone of 51.6kt @24.65g/t gold and 187g/t silver within the indicated resource1

Mithril Resources Ltd (ASX: MTH) (Mithril or the Company) is pleased to provide exploration results for its 100% optioned Copalquin Gold Silver Project in Mexico where a maiden 529koz gold equivalent* high-grade gold-silver JORC resource has been defined at El Refugio-La Soledad *(see ASX announcement 17 November 2021)

Mithril CEO and Managing Director, John Skeet, commented:

“The very high-grade CDH-140 intercept is an excellent result adding significantly to the El Refugio resource confidence on this westerly ‘section 800’ where there is no previous drilling. Drill hole CDH-141 intercepted a wide zone of gold-silver mineralisation with several reportable and high-grade intercepts, demonstrating the size and continuity of the El Refugio structure and its significance in the Copalquin District. Drilling at the eastern end of El Refugio has been completed with good observations in drill core and awaiting assays. Study work is producing development opportunities for the El Refugio resource to progress over the coming months.”

El Refugio Drilling May-June 2022

Drilling recommenced at El Refugio in May 2022 with a program of six deep holes, three drilled from a location slightly oblique to the main structure, in order to reduce the length of the drill holes to reach the targeted depth. Assays have been received for all drill holes. The program successfully achieved the objective of locating the main structure and confirming high-grade gold and silver on the western side of the El Refugio resource area while providing additional information for the location of the upwelling feeder zone. The previously reported intercept in hole CDH- 137 of 5.67m @ 4.37 g/t gold, 174g/t silver from 331.33m, (CDH-137), including 1.67m @ 9.64 g/t gold, 399 g/t silver from 331.33 plus 1.00m @ 1.68 g/t gold, 67.2 g/t silver from 367.0m and 1.00m @ 1.27 g/t gold, 46.1 g/t silver from 370.0m filled a gap down dip on section 560 and drill hole CDH-136 confirms the downdip extension with some further high-grade gold and silver mineralisation and multiple intercepts.

The first drill holes on section 800 are reported with exceptional high-grade gold and silver intercepts in this western side of the El Refugio resource area with 5.83m @ 15.7 g/t gold, 474 g/t silver from 91.77m, (CDH-140), including

1.81m @ 45.5 g/t gold, 1,387 g/t silver from 93.77m down dip of hole CDH-139 (Figure 3). This supports the high- grade previously intercepted 40m west by drill hole CDH-094 with 18.87m @ 9.67g/t gold, 279g/t silver.

Figure 1 – Plan view at El Refugio – La Soledad showing the maiden JORC MRE area, drill traces and section lines with the locations of the drill
intercepts for drill holes CDH-140 and CDH-141 reported in this announcement

1 see page 6 for JORC MRE details

Figure 2 – Cross section 600 showing the well developed El Refugio structure which hosts multiple gold-silver bearing veins
including very high-grade grades

Figure 3 – Cross section 800 where the first drill holes have been completed at the western side of the El Refugio resource
area with very high-grade gold and silver developing down dip and one section east of the high-grade CDH-094 intercept.

El Refugio Drilling June-July 2022

A drill programme has recently been completed on the eastern side of El Refugio targeting deep and near to where the main El Refugio upwelling zone is projected.

Core from the most recent holes have the first observed occurrences of platy quartz after calcite, a texture indicative of boiling and gold deposition. Late amethyst is also observed filling what was open space at the time of mineralization. This texture is indicative of boiling. Visible silver minerals are commonly observed in the mineralized veins. All drill core samples have been dispatched for assay.

Figure 4 Photo of drill core from drill hole CDH-144 at 268m, showing black silver sulphides and sulphosalts and pyrite

Figure 5 Oblique long section showing the La Soledad and El Refugio vein models with drill hole traces and resource block model. Scale and
elevations are approximate.

The above figure shows an oblique view of the La Soledad-El Refugio vein and block models with traces of drill holes to date. Recent drill logs and results show significant depth potential of this major system and also indicate the general location of the El Refugio upwelling feeder zone and this is consistent with the epithermal gold-silver model shown in the figure below.

Figure 6 Copalquin District Geologic Model for epithermal gold/silver – geologic model (author: Hall Stewart PG, Chief Geologist)

Scoping Study Work

Work is progressing to assess the first stage development options to optimally exploit the high-grade El Refugio resource. Recent drilling has been spaced across the strike of the mineralized zone to infill strategic areas. There are options to reduce the mine development meterage and to take advantage of topography and high-grade zones within the El Cometa-El Refugio resource on the eastern side of the deposit to potentially produce attractive development economics including low initial capital requirements and short payback period.

ABOUT THE COPALQUIN GOLD SILVER PROJECT

The Copalquin mining district is located in Durango State, Mexico and covers an entire mining district of 70km2 containing several dozen historic gold and silver mines and workings, ten of which had notable production. The district is within the Sierra Madre Gold Silver Trend which extends north-south along the western side of Mexico and hosts many world-class gold and silver deposits.

Multiple mineralisation events, young intrusives thought to be system-driving heat sources, widespread alteration together with extensive surface vein exposures and dozens of historic mine workings, identify the Copalquin mining district as a major epithermal centre for Gold and Silver.

Within 15 months of drilling in the Copalquin District, Mithril delivered a maiden JORC mineral resource estimate demonstrating the high-grade gold and silver resource potential for the district. This maiden resource is detailed below (see ASX release 17 November 2021).

  • 2,416,000 tonnes @ 4.80 g/t gold, 141 g/t silver for 373,000 oz gold plus 10,953,000 oz silver (Total 529,000 oz AuEq*) using a cut-off grade of 2.0 g/t AuEq*
  • 28.6% of the resource tonnage is classified as indicated
 Tonnes (kt)Tonnes (kt)Gold (g/t)Silver (g/t)Gold Equiv.* (g/t)Gold (koz)Silver (koz)Gold Equiv.* (koz)
El RefugioIndicated6915.43114.27.061212,538157
 Inferred1,4474.63137.16.592156,377307
La SoledadIndicated
 Inferred2784.12228.27.38372,03766
TotalIndicated6915.43114.27.061212,538157
 Inferred1,7254.55151.76.722528,414372
 TOTAL2,4164.801416.8137310,953529
Table 1 – Mineral resource estimate El Refugio – La Soledad using a cut-off grade of 2.0 g/t AuEq*

*AuEq. = gold equivalent calculated using and gold:silver price ratio of 70:1. That is, 70 g/t silver = 1 g/t gold. The metal prices used to determine the 70:1 ratio are the cumulative average prices for 2021: gold USD1,798.34 and silver: USD25.32 (actual is 71:1) from kitco.com

Mining study and metallurgical test work supports the development of the El Refugio-La Soledad resource with conventional mining methods indicated as being appropriate and with high gold-silver recovery to produce metal on-site with conventional processing.

Mithril is currently exploring in the Copalquin District to expand the resource footprint in 2022 to demonstrate its multi-million ounce gold and silver potential.

Mithril Resources is earning 100% interest in the Copalquin District mining concessions via a purchase option agreement detailed in ASX announcement dated 25 November 2019.

Figure 7 – Satellite image of the Copalquin Mining District 70km2 concession area showing the two main lines of historic workings, areas of
exploration work and the location of the maiden JORC MRE at El Refugio. The long sections indicated on the map are shown in the figures below

Figure 8 – Schematic long section of the Copalquin District Middle Section which includes the maiden JORC resource at El Refugio/La Soledad.

District South Section

The Las Brujas-El Peru target is drill ready following positive results from the rock chip sampling program from within the historic mine working and the soils sampling program that revealed a good gold and silver anomaly. The historic mine workings at Las Brujas and at El Peru are connected by a 500m long surface trace of quartz vein.

Mapping and rock chip sampling of a north-south oriented structure at El Guamuchilito has been completed. Aerial drone surveying will continue until the end of the dry season usually around mid-late June.

Figure 9 – Schematic long section of the District South Section, Copalquin Mining District.

Figure 10 – Copalquin District location map with locations of mining and exploration activity within the state of Durango

-ENDS-

Released with the authority of the Board. For further information contact:

John Skeet
Managing Director and CEO
[email protected]
+61 435 766 809

Mark Flynn
Investor Relations
[email protected]
+61 416 068 733

Competent Persons Statement

The information in this report that relates to sampling techniques and data, exploration results and geological interpretation has been compiled by Mr Hall Stewart who is Mithril’s Chief Geologist. Mr Stewart is a certified professional geologist of the American Institute of Professional Geologists. This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code.

Mr Stewart has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Stewart consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

The information in this report that relates to metallurgical test results, mineral processing and project development and study work has been compiled by Mr John Skeet who is Mithril’s CEO and Managing Director. Mr Skeet is a Fellow of the Australasian Institute of Mining and Metallurgy. This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code.

Mr Skeet has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Skeet consents to the inclusion in this report of the matters based on information in the form and context in which it appears. The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Original Article: https://investi.com.au/api/announcements/mth/40f92beb-e33.pdf

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