Mithril Drills 80.3g/t Gold, 705g/t Silver Over 8.26 Metres – El Refugio, Copalquin District, Mexico

Exploration and Development

Mithril Drills 80.3g/t Gold, 705g/t Silver Over 8.26 Metres – El Refugio, Copalquin District, Mexico

July 11, 2021

Highlights

Bonanza grade intercept in CDH-077 extending the El Refugio high-grade gold-silver ‘clavo’ 160m further down dip:
- 8.26m @ 80.3 g/t gold, 705 g/t silver from 468.34m (CDH-077), including
- 6.26m @ 106 g/t gold, 913 g/t silver from 468.34m, including
- 0.77m @ 837 g/t gold, 6,680 g/t silver from 471.63m

Abundant coarse gold with silver sulphide mineralisation observed in drill core
Continued development of the El Refugio ‘clavo’ with further high-grade intercepted:
- 2.70m @ 13.8 g/t gold, 82.9 g/t silver from 300.3m (CDH-075), plus 4.25m @ 10.9 g/t gold, 364 g/t silver from 307.05m, including 2.65m @ 16.3 g/t gold, 414 g/t silver from 315.0m, plus
- 2.00m @ 1.02 g/t gold, 17.5 g/t silver from 315.0m, plus
- 4.50m @ 0.84 g/t gold, 34.8 g/t silver from 358.5m
- 2.40m @ 0.93 g/t gold, 15.6 g/t silver from 342m (CDH-076), plus
- 5.00m @ 2.06 g/t gold, 95.4 g/t silver from 373m, plus
- 1.00m @ 0.86 g/t gold, 39 g/t silver from 383m
Further deep holes scheduled to continue expanding the El Refugio gold-silver deposit
Location of the bonanza intercept is favourably located for easy access with an exploration drift

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

Mithril CEO and Managing Director, John Skeet, commented:

“The extremely high-grade intercept in our deepest drill hole CDH-077 has extended the high-grade ‘clavo’ at El Refugio a further 160m down dip. In this exceptional CDH-077 intercept we have observed mineralisation including abundant coarse gold and silver sulphides, consistent with having intercepted the ‘bonanza zone’ as predicted by the geologic model. Additionally, hole CDH-075 has intercepted very-high grades with abundant coarse gold and silver sulphides down dip of the extremely high-grade CDH-050 intercept reported in March 2021. Drilling at El Refugio has continued to consistently deliver excellent results establishing El Refugio as a significant deposit for gold and silver in the Copalquin district.”

Assay results for three drill holes have been received, continuing to expand the El Refugio structure down dip with high-grade and bonanza grade gold-silver intercepts. Hole CDH-077 was designed to test the depth extents of the high- grade clavo and, in particular to test the zone predicted by the geologic model to be a bonanza zone at El Refugio. Drill hole CDH-077 successfully intercepted extremely high-grade gold and silver within a broad intercept of 8.26 metres at 80.3 g/t gold and 705 g/t silver from 468.34 metres down hole.

**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 shown for each hole, pierce points are the midpoint of the main intercept. 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:** 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 1.

**Figure 3:** Two halves of cut NQ size core from hole CDH-077 472.1-472.3 metres with abundant visible gold

**Figure 4a** and b: mm wide rims of free gold surrounding fine aggregates of pyrite plus gold, plus silver sulphides 472.2 m CDH-077

**Figure 5:** Glint of gold in CDH-076 at 376.2m. **Figure 6**: Glint of gold in CDH-072 at 38.0m (ASX Release 15/6/2021)

**Figure 7:** CDH-075 at 301.5m @ 150 X gold w/ginguro. **Figure 8:** CDH-075 at 301.5m @ 100 X. gold w/ginguro

**Figure 9:** CDH-075 at 301.90m @ 100 X gold w.ginguro. **Figure 10:** CDH-075 at 301.95m @ 150 X gold w/ginguro.

**Figure 11:** CDH-075 at 307.6m @ 100 X free gold. **Figure 12:** CDH-075 @ 310.15m @ 150 X gold w/ginguro.

**Figure 13:** El Refugio cross section 480 showing intercepts for new drill holes CDH-075 & 076. Note: CDH-076 collared on this section 480, intercept is behind (further away).

**Figure 14:** El Refugio cross section 600 showing new drill hole CDH-077 intercept reaching the bonanza zone as per the geologic model shown in Figure 17.

Preliminary Concept for Mine Access – El Refugio

Deep high-grade intercepts such as in holes CDH-061, CDH-071 and CDH-077 bring mineralisation closer to potential access from a site with favourable logistics, taking advantage of the local topography. The CDH-077 ‘bonanza zone’ can be reached by an exploration drift (adit) of approximately 750 metres long. Such a drift would allow access for the close-spaced sampling that will be necessary to bring the bonanza grade zone into higher confidence resource categories.

**Figure 15**: Schematic showing an underground mine access concept for the El Refugio gold-silver deposit, Copalquin District, Mexico.

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

**Figure 17:** 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/19e6e9e8-ed1.pdf

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