Mithril Drills 74 g/t Gold, 841 g/t Silver Over 6.8 Metres – Copalquin District, Mexico

Highlights

Bonanza high-grade from shallow drill hole completed at El Cometa suggesting north-south trending structure:
- 6.8m @ 74 g/t gold, 841 g/t silver from 35.2m (CDH-072, twin of historic UC-03), including
- 2.1m @ 235 g/t gold, 2,554 g/t silver from 37.9m
Continued expansion of the El Refugio structure to 650m long and 300m down dip:
- 4.61m @ 1.87 g/t gold, 89.3 g/t silver from 155.84m (CDH-068), plus
- 0.77m @ 4.00 g/t gold, 37.0 g/t silver from 176.41m, plus
- 0.90m @ 0.59 g/t gold, 38.0 g/t silver from 193.38m,
7.60m @ 2.34 g/t gold, 143.6 g/t silver from 253.25m (CDH-069), plus
- 1.00m @ 2.64 g/t gold, 167.0 g/t silver from 266.35m,
6.00m @ 1.41 g/t gold, 66 g/t silver from 240m (CDH-070), including
- 0.50m @ 9.53 g/t gold, 613 g/t silver from 240m, plus
- 1.00m @ 4.94 g/t gold, 96.0 g/t silver from 235.87m, plus
- 1.80m @ 2.38 g/t gold, 53.1 g/t silver from 157.55m,
1.05m @ 2.36 g/t gold, 95.3 g/t silver from 186m (CDH-071), plus
- 0.50m @ 28.9 g/t gold, 471 g/t silver from 222.77m, plus
- 1.66m @ 2.41 g/t gold, 152.8 g/t silver from 235.87m, plus
Drilling continues along the El Refugio structure with deep holes CDH-075 – 076 intercepting multiple veins (awaiting assays)
Soil sampling commenced to extend the El Refugio structure a further 1.3 km west

Mithril Resources Ltd (ASX: MTH) (Mithril or the Company) is pleased to further exploration and drilling results at its Copalquin Gold Silver District, Mexico.

Mithril CEO and Managing Director, John Skeet, commented:

“With the extremely high-grade intercept in hole CDH-072 we have confirmed the bonanza grades El Cometa intercepted by the historic drilling (UC-03) and further developed the model for the complex El Cometa vein system. The model will guide future exploration in this structure which extends 2km east to Los Reyes. Our deeper drilling to extend the eastern side of the El Refugio clavo has shown excellent continuity intercepting multiple veins. Hole CDH- 068 has confirmed further westerly extension of the El Refugio structure ahead of exploration work aimed at expanding the structure up to 1.3km west. El Refugio has already grown to 650m long and 300m down dip and with a very high- grade zone (clavo) within the mineralised structure. Recently completed deep (+400m) drill holes have continued to intercept the central portion of the clavo and we look forward to reporting these results.”

Figure 1: Map view of the El Cometa/El Refugio drilling showing the drill traces and the drill intercepts covered in this release. Long section indicated by orange dotted line shown in Figure 2. The vein model for El Cometa is conceptual at this stage.

Assay results for four drill holes have been received expanding the El Refugio structure plus a hole designed to twin historic drill hole UC-03, intercepting extreme high-grade gold and silver (CDH-072).

Hole CDH-072 is Mithril’s follow up test of the Cometa portion of the Refugio to Los Reyes structural zone. The first pass drilling (CDH-026 – CDH-031) was oriented perpendicular to the main structural zone and did not intercept the historically reported high grade gold mineralization found in UC Resources hole UC-003. After further detailed geologic mapping, it is postulated that there are a series of N – S tension gashes or dilatant fractures that were favourable for the deposition of bonanza grade gold. Follow up drilling will include (20m) step out drilling to locate the fractures.

Drill hole CDH-068 extends the main Refugio structure another 60 meters to the west (Figure 4). Follow up holes are planned further along strike and down dip in addition to a soil sampling program aiming to expand the El Refugio structure strike a further 1.3km west.

Drill hole CDH-069 is a deeper hole on the same section as CDH-062 (Figure 5) intercepting the veins 70 metres down dip in central part of the current El Refugio drill area with the assays showing the continued width and depth progression of this high-grade mineralised zone within the structure.

Drill holes aggressively stepped down dip of hole CDH-053 on the eastern side of the El Refugio clavo have extended the veins deeper by 50 metres (CDH-070) and 100 metres (CDH-071) as shown in Figure 6.

Deeper holes over 400 metres (CDH-075 – 076) have been completed in the middle of the El Refugio clavo intercepting the targeted structure as shown below in Figure 2 (awaiting assays).

Figure 2: 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 shown for each hole, pierce points are the midpoint of the main intercept. Figures 4 and 5 over page show the plan location and the full width schematic long section developed to date. 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 3: El Cometa structural model and showing the drill traces for 2020 drilling with the location of drill hole CDH-072 reported in this announcement. The location of this model is shown above in Figure 1.

Figure 4: Cross section showing CDH-068 intercept on most western extent of the El Refugio structure to date.

Figure 5: Cross Section showing deeper intercepts of CDH-069.

Figure 6: Cross section showing multiple intercepts for holes CDH-070 and CDH-071.

The drill will soon be relocated to La Soledad to deepen existing drill holes to intercept the Leon vein intercepted by CDH-014 and CDH-054 and which was also observed in CDH-001 and CDH-010. Subsequently the drill will target the intersection of the El Refugio and the La Soledad structures (see Figure 7 below). This an important target determined by the vein models developed from the 3D modelling of the drill data.

Figure 7: Cross section showing the projected intersection of the Refugio vein with the La Soledad vein swarm. Drill hole CDH-012 will be extended to locate the Leon vein and the Refugio vein. Drill hole from drill site S-15 is designed to intersect the projected convergence of the Refugio and La Soledad vein structures.

Soils Sampling Program – El Refugio West

Mithril announced soil sampling results (silver only) for the Refugio and part of Refugio West areas on March 24, 2021. After receipt of the gold analysis the area has been re-interpreted identifying low-level gold anomalies that correspond to the locations of mapped quartz-bearing structures.

A follow-up soil sampling program over the Refugio West target is underway with 240 samples planned to be collected from five sample grids of 48 samples each. This sampling program tests the hypothesis that the mapped structures to the west of Refugio are likely to be gold-bearing veins. Successful results from this program may extend the target zone for drilling a full 1,300 meters west from the currently westernmost drill holes.

Observations in the field include zones of quartz stockwork, large areas of clay alteration and the presence of rhyolite dikes and domes which are associated with mineralisation in the main Refugio target-area.

A map of the planned soil grids is shown below in Figure 8 with quartz-bearing structures shown in red.

Figure 8: Soil sampling program results and planned sampling grids. Geochemical gold levels in soils determined by fire assay.

Figure 9: Western part of the Copalquin District with the schematic long section in Figure 5 below, shown by the orange dashed line and the schematic long section in Figure 6 by the red dashed line.

Figure 10: Schematic Long section Refugio West-Los Reyes with drill hole pierce point for holes completed to date plus conceptual planned resource development holes in turquoise and exploration holes shown in grey.

Figure 11: Schematic Long section La Soledad-El Indio with drill hole pierce point for holes completed to date plus conceptual planned resource development holes in turquoise and exploration holes shown in grey. CDH-011 shown in red as a reminder that the void (historic mine workings) probably had mineralisation of a similar, or higher grade than the two intercepts reported. 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.

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 12: Copalquin District location map within the Sierra Madre gold-silver trend with North American majors currently working in this part of Mexico.

Figure 13: 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/09be3d6b-701.pdf

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