• Deeper drill intercept at the El Refugio target has intersected high-grade and wider interval as predicted by the geologic model (hole CDH-033) one section (40m) away from the previously reported high-grade intercept in hole CDH-020.
    • 9.35m @ 9.57 g/t AuEq.1 (7.84 g/t gold and 138.1 g/t silver) from 206.3m (CDH-033), including 4.0m @ 20.03 g/t AuEq.1 (16.44 g/t gold and 286.8 g/t silver)
  • Shallow drill holes at the El Cometa target towards the El Refugio target (holes CDH-032 and 034)
    • 14.85m @ 1.45 g/t AuEq.1 (0.85 g/t gold and 47.9 g/t silver) from 82.10m (CDH-034), including 1.3m @ 8.94 g/t AuEq.1 (5.07 g/t gold and 308.9 g/t silver)
    • 9.78m @ 1.02 g/t AuEq.1 (0.85 g/t gold and 13.3 g/t silver) from 78.75m (CDH-032)
  • Shallow drilling perpendicular to the historic drilling at the El Cometa target has intercepted the structure near surface with continuity along strike for almost 300m;
    • 11.7m @ 2.04 g/t AuEq.1 (1.16 g/t gold and 70 g/t silver) from 10.9m (CDH-027), including 1.0m @ 10.12 g/t AuEq.1 (7.17 g/t gold and 236 g/t silver) and 1.0m @ 3.51 g/t AuEq.1 (1.27 g/t gold and 179.0 g/t silver)
    • 2.9m @ 4.63 g/t AuEq.1 (1.93 g/t gold and 215.72 g/t silver) from 29.6m (CDH-029)
    • 5.28m @ 0.71 g/t AuEq.1 (0.39 g/t gold and 25.56 g/t silver) from 35.72m (CDH-031)
    • 10.15m @ 0.74 g/t AuEq.1 (0.55 g/t gold and 15.47 g/t silver) from 42.0m (CDH-035), including 1.0m @ 4.62 g/t AuEq.1 (3.75 g/t gold and 69.6 g/t silver)
  • The drill data from the historic holes at the El Cometa target together with Mithril’s cross structure holes confirm the existence of a shallow-dipping breccia-vein system that hosts very high-grade veins. Mapping shows this vein system to continue east, 800m to the Los Pinos target and a further 500m to the Los Reyes target.

Mithril Resources Ltd (ASX: MTH) (Mithril or the Company) is pleased to provide an update on drilling activities at the Cometa Project in the Copalquin Gold Silver District, Mexico.

Drill hole CDH-033 has intercepted high-grade gold and silver deeper in the structure previously intercepted by drill hole CDH-015, CDH-020 and the other holes at Refugio. There is abundant fine-grained pyrite above the zone and more chalcedony is observed in the intercept as well as milled fragments of chalcedony in the breccia which were likely derived from deeper in the system (multiple mineralisation events).

  1. AuEq = gold equivalent grades calculated at 80 g/t Ag = 1 g/t Au, using gold price of USD1,600 per ounce and silver price of USD20 per ounce.

There is a moderate amount of black sulphide (a complex of silver sulphosalts and sulphides) accompanied by pyrite, sphalerite and chalcopyrite. Evidence of stacked boiling zones and the multiple mineralisation events are important indicators that this is a large, long lived epithermal gold-silver system. Our observation that there is more chalcedony as we drill deeper in the system is evidence that there are stacked boiling zones.

Mithril Managing Director and CEO, John Skeet, commented:

“The awaited assays for hole CDH-033 at the El Refugio target have further supported the geologic model and have returned an excellent intercept. All indications from the mineralogy of the drill core support deeper drilling to intercept further high-grade vein. There is also support for the existence of stacked boiling zones. El Refugio is shaping up as a very strong and important target in the Copalquin district.

It is clear we are now seeing the top of a large system for gold and silver and future drilling is being designed to drill deeper and to test the extent of the structure at the El Refugio target. The several dozen historic mines and workings across the district, extensive rock chip sampling and the successful maiden drill program continue to indicate a large epithermal gold silver system in the district. The model and the drill core are mirroring the geological observations from other notable epithermal gold-silver deposits, namely Pinos Altos, Palmarejo and Tayoltita in Mexico, Cerro Negro in Southern Argentina.”

Figure 1 Copalquin District Geologic Model for epithermal gold/silver – geologic model (author: Hall Stewart PG, Chief Geologist)

Drilling Progress – El Refugio Target, Cometa Project

Assays for the final drill hole at the El Refugio target have been received which importantly has confirmed the promise of higher grades and thicker intercepts deeper on the structure.

  • Hole CDH-033 intercepted 9.35m @ 9.57 g/t AuEq.1 (7.84 g/t gold and 138.07 g/t silver) from 206.3m, including 4.0m @ 20.03 g/t AuEq.1 (16.44 g/t gold and 286.75 g/t silver)

The mineralogy and textures observed in the core indicate the existence of stacked boiling zones and multiple mineralisation events. El Refugio is very near the upwelling zone of a hydrothermal cell where the breccia zone reaches widths of up to 30 meters true width.

Figure 2 El Refugio target cross section for drill holes CDH-015, 16 & 33. Hole CDH-033 has intercepted very high- grade gold and silver over a greater thickness deeper on the structure as anticipated from the geologic model.

Two further holes continued to successfully intercept the El Cometa structure 110m east of El Refugio with broad, shallow brecciated and mineralised zones as it merges with the El Refugio structure, including the following intercepts:

  • Hole CDH-034 intercepted 14.85m @ 1.45 g/t AuEq.1 (0.85 g/t gold and 47.90 g/t silver) from 82.10m including 1.3m @ 8.94 g/t AuEq.1 (5.07 g/t gold and 308.85 g/t silver)
  • Hole CDH-032 intercepted 9.78m @ 1.02 g/t AuEq.1 (0.85 g/t gold and 13.34 g/t silver) from 78.75m
Figure 3 El Refugio target cross section for drill hole CDH-020.
Figure 4 El Cometa-El Refugio target cross section for drill holes CDH-032 & 34.

At the El Cometa target a fence of shallow holes were drilled across the structure and perpendicular to the historic drill holes by UC Resources in 2004. Importantly, the drilling has shown the structure to be continuous along strike and to host veins with erratic high-grade gold and silver. It is a complex vein system that requires further work to understand.

Holes drilled by UC Resources in 2004 to confirm the drilling completed by Bell Coast Capital Corp. in 1998 included the following intercepts. It is important to note that all the holes drilled by UC Resources and Bell Coast were drilled parallel to the El Cometa structure, intercepting high-grade veins. Mithril concludes that UC’s work is reliable (43-101 compliant), but that the high-grade values are discontinuous and erratically distributed within the El Cometa structure. This may be due to supergene enrichment of gold in the near surface environment.

UC Resources reported drill hole UC-03, 17.77m @ 45.2 g/t gold and 117.7 g/t silver from 30.42m including 5.52m @ 144.26 g/t gold and 328.63 g/t silver 2.

Figure 5 Drill traces at the El Refugio & El Cometa targets, Cometa Project. All drill holes intercepted the El Refugio and El Cometa structures. The location of drill hole UC-03 drilled by UC Resources & reported under Canadian NI43-101 in January 2005 is shown.

2 The UC Resources news releases were reported to the Canadian market under the NI43-101 guidelines and signed off by a qualified person. The drill results cannot be verified by Mithril and they cannot be used for JORC compliant resource and reserve estimations. The releases are available on the Mithril Resources website under Historic Drilling Reports.


The El Cometa vein dips about 40 degrees to the north and extends from the Cometa Project, east towards Los Pinos and Los Reyes for a horizontal distance of 1,500m. At El Cometa, where it has been drill tested, the vein location is predictable however the mineralisation within the vein is complex. The variability within the vein can be extreme. Clearly the veins and the high grades exist, but the continuity cannot yet be demonstrated with any confidence. At this point in the exploration program, we can confidently model the vein at El Cometa and only comment that this complex vein structure is reported to include extreme high-grade domains for gold and silver.

December 2020 – The maiden drill program has been completed at the Copalquin Mining District

The final drill holes of the maiden drill program have been completed in the San Manuel target at the Apolonia project.

Figure 6 Projects and Prospects within the 7,005Ha concession are covering the Copalquin District. Large epithermal system extending for 4 km indicated by drilling to date at the El Refugio targe, the extensive surface alteration and rhyolitic dikes/domes.


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


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 operated one man-portable diamond drill rig (HQ size diamond core) in the Copalquin District since late July 2020. Over 7,000m have been drilled in this maiden drill program to test several targets at four projects in the district. To date, the maiden drill program has been highly successful, demonstrating the large epithermal system potential within the district.

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/d537a4bb-b57.pdf



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