Highlights

  • Drilling Highlights for intercepts in three diamond drill holes at El Refugio:
    • 8.0m @ 5.32 g/t gold, 104.63 g/t silver from 289.3m (CDH-063) including 1.0m @ 29.9 g/t gold, 273 g/t silver from 289.85m
    • 4.82m @ 4.12 g/t gold, 107.13 g/t silver from 259.7m (CDH-062) including 1.6m @ 7.94 g/t gold,211.10 g/t silver from 260.7m Plus 2.1m 4.68 g/t gold, 22.38 g/t silver from 299.5m
    • 7.75m @ 0.95 g/t gold, 24.7 g/t silver from 272m (CDH-061) Plus 15.77m @ 1.44 g/t gold, 76.3 g/t silver from 291m
  • The above intercepts extend the high-grade mineralisation 80m down dip
  • Drilling has continued at El Refugio intercepting structures up to 180m further to the west and up to a further 75m down dip
  • El Refugio continues to grow as a large high-grade gold and silver target


Mithril Resources Ltd (ASX: MTH) (Mithril or the Company) is pleased to provide an update on the fully funded exploration activities at its Copalquin Gold Silver District, Mexico.

Mithril CEO and Managing Director, John Skeet, commented:

“These are excellent intercepts to have received for holes drilled in this part of the Refugio target. They show continuing high-grade gold and silver, multiple vein intercepts and increasing widths. Drill holes up to 180m west have also been completed and we are currently drilling deep, vertical holes intercepting the structures further down dip.

The size of El Refugio continues to increase with the advancing diamond core drill program. We look forward to providing a continuing flow of news over the coming weeks.”

Following the recent drill hole CDH-050 (4.17m @ 62.0 g/t gold and 445 g/t silver from 233.43m) at the El Refugio target, results for drill holes CDH-061 – 063 have been received. Multiple vein intercepts are reported for each hole and with greater widths, adding significantly to the resource potential of the El Refugio target. Drilling is continuing at El Refugio with five more drill holes awaiting assays. Drilling is planned to intercept the structure/veins further down dip. The full reportable intercepts for the three diamond HQ drill holes are given below.

CDH-061

  • 7.75m @ 0.95 g/t gold, 24.7 g/t silver from 272m, plus 0.95m @ 0.95 g/t gold, 10 g/t silver from 291m, plus 15.77m @ 1.44 g/t gold, 76.3 g/t silver from 291m.

CDH-062

  • 4.82m @ 4.12 g/t gold, 107.13 g/t silver from 259.7m, including 1.6m @ 7.94 g/t gold, 211.10 g/t silver from 260.7m, plus 2.1m @ 4.68 g/t gold, 22.38 g/t silver from 299.5m, plus 3.17m @ 0.48 g/t gold, 36.50 g/t silver from 303.85.

CDH-063

  • 1.09m @ 1.46 g/t gold, 37 g/t silver from 282.66m, plus 8.0m @ 5.32 g/t gold, 104.63 g/t silver from 289.3m, including 1.0m @ 29.9 g/t gold, 273 g/t silver from 289.85m, plus 0.64m @ 1.14 g/t gold, 44 g/t silver from 309.32m.
Figure 1: Long section for the El Refugio target in the Copalquin district showing drill hole pierce points. Grade thickness as shown is the sum of all intercepts in each hole. Figures 2 and 3 over page show the plan location and the full width long section developed to date.

1 Metal equivalent grades calculated using 70 g/t Ag = 1 g/t Au, based on gold price of USD1,610 per ounce and silver price of USD23 per ounce.

Figure 2: Western part of the Copalquin District with the long section in Figure 2 below, shown by the orange dashed line.
Figure 3: Schematic Long section with drill hole pierce point for holes completed to date plus conceptual planned resource development holes in turquoise and exploration holes shown in grey.

Further drill holes are planned for the La Soledad and El Indio targets just to the north of El Refugio, and across to the east at Los Pinos. Below in Figures 4 to 6 are three cross section through the El Refugio target where the drill holes in this announcement are shown.

Figure 4: Cross Section 440, veins have developed with depth. Drill hole CDH-069 (awaiting assays) has intercepted the veins/structure 60-80m further down dip.
Figure 5: Cross Section 480, veins have developed with depth. Further drilling to continue to intercept the structure/veins deeper.

Figure 6 Cross Section 520, veins have developed with depth. Further drilling to continue to intercept the structure/veins at deeper.

DRILL PLAN FOR THIS QUARTER

The drill plan focus is on deeper drilling at Refugio with target depths between 300 to 400 m down hole. The majority of the drilling for the current quarter will be directed at Refugio and Soledad where our understanding of the target geometry continues to improve and gives us a high confidence for further success. Approximately 500 m of drilling will be used to drill two scout holes on the Los Pinos ridge where preliminary mapping and detailed soil-sampling indicate a good target along the Refugio to Los Reyes trend.

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.

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: Copalquin District location map within the Sierra Madre gold-silver trend with North American majors currently working in this part of Mexico.
Figure 8: Copalquin District Geologic Model for epithermal gold/silver – geologic model (author: Hall Stewart PG, Chief Geologist)

-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 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/f70edf06-2df.pdf

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