Highlights

• La Soledad drill hole CDH-054 has returned:

• 4.88m @ 10.36 g/t gold and 80.9 g/t silver from 288.25m

• The high-grade intercept extends the mineralisation further to the west and down dip

• La Soledad is developing as a ‘vein swarm’ system with multiple high-grade veins intercepted

• Drilling has resumed at the nearby El Refugio target, where the bonanza grade hole CDH-050 (4.17m @62g/t gold & 445g/t silver from 233.43m), was reported last week.

• Drilling at El Refugio seeks to extend the high-grade structure deeper and along strike to the west

• Soil sampling results identify strong silver anomalies in the district.

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

Mithril CEO and Managing Director, John Skeet, commented:

“This high-grade intercept at La Soledad is showing the target to be a series of parallel veins which are open to the west and at depth. As we have progressed the drilling at La Soledad and nearby at El Refugio, we are building an understanding of the relationship between the two sets of vein structures and their potential interaction at depth. We will be targeting these zones of projected vein intersections as well as expanding the targets further west and to the north easterly target of El Indio identified by the recent soil sampling program.”

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 hole CDH-054 have been received for the first hole drilled at the nearby La Soledad target reporting 4.88m @ 10.36 g/t gold and 80.9 g/t silver from the Leon vein 288.25m down hole.

The oblique section below in Figure 1 shows the vein models and drill holes in the three main targets withing the Cometa Project area in the Copalquin District.

Figure 1 is looking approximately 300 degrees (north west) and rotated slightly south to produce the oblique view. The section shows the current vein models and highlight drill intercepts at the El Refugio, El Cometa and La Soledad targets. Future drilling will target zones where the veins are projected to intersect as well as extending the mineralisation to the west of El Refugio and to the west and north east of La Soledad. Importantly, the geologic model is also indicating to drill deeper at the El Cometa target than our first campaign of drill holes in 2020.

Soil Sampling Program January-February 2021

Objectives

In order to evaluate large areas by a systematic method Mithril Resources has carried out an extensive soil sampling program with the objective of refining the drill targets based on structural mapping and identifying new targets not identified by mapping.

Methods

Soil sampling is a ‘tried and true’ method for evaluating large areas systematically. The entire Copalquin project is characterised by thin, arid soils subject to rapid erosion. There is little development of multiple soil horizons. Only a thin 5 – 10 cm organic A-horizon above a 0 – 100 cm B horizon, then bedrock. Sample grids were laid out in Mapinfo software on a 25m x 50m grid with lines-oriented N-S. In drainage areas or areas underlain by mass wasting deposits sample points were omitted. Samples were collected using a steel pick and a plastic bowl as a scoop/shovel. All samples were collected from 20 – 30 cm depth. Samples were passed through a 10 mesh (2mm) and then -80 mesh (180 micron) screen in the field then bagged in heavy brown paper envelopes as is common for soil samples. The samples were returned to the core shed where they were sun dried in their sample envelopes for 2 to 3 days. After drying the samples had an approximately 10g portion split off and placed in a plastic sample-holder. Samples were then analysed on site by our staff geologists using an Olympus Vanta 50Kv X-Ray fluorescence (XRF) analyser. Readings were taken at two beam wavelengths, 50 KV for 120 seconds and 15 KV for 30 seconds. Results were obtained for Silver, zinc, lead, copper and a suite of other elements including elements indicative of alteration such as Potassium and Barium. The remaining sample (200g each were sent to Bureau Veritas assay lab for fire assay for gold. These results are pending.

Samples were collected from four areas, Los Pinos/El Indio, Los Reyes, Refugio west and Zaragosa. A total of 697 samples were collected and analysed with the XRF.

Table 1 Soil samples collected and analysed for silver using a portable XRF analyser.

Results and Interpretation

Anomalous silver was identified in all targets. Silver is considered to be a good indicator for hidden veins or portions of known veins that are better mineralized. Silver is more mobile that gold and is more likely to be diffused further from the veins. Anomalous silver generally corresponds to the mapped structures. Values range from less than detection (approximately 2 ppm) to 154 ppm Ag. Samples were considered anomalous at or above 5 ppm Ag.

The four maps attached in Figure 5 to Figure 8 present the results graphically.

El Indio

At El Indio there is a strong silver anomaly (up to 151 g/t in soil) near the old mine workings.

Los Reyes

Silver is present in distinctly anomalous levels over a large area. Eleven samples returned greater than 5 ppm Ag with a high of 154 ppm Ag. Silver distribution follow the mapped structure and confirms that our existing drill plan is well considered.

Zaragosa

Nine samples returned greater than 5 ppm silver from Zaragosa. This indicates that the Copalquin/Zaragosa structure continues to the west of the large Soledad Arroyo. Further mapping is planned before planning to drill this target.

Refugio West

Clay altered areas were observed while collecting soil samples at Refugio West, but none of the samples indicated silver content above 5 ppm from the XRF analysis. It is likely that the mineralized portion of the Refugio structure is deep enough that anomalies are not reflected in the soil samples. The soil sampling program covered the area tested with holes CDH-024 and CDH-025 both of which had mineralized intercepts. Silver is present in the soils from the area of holes CDH-024 and CDH-025, but values are between 3 to <5 ppm.

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.

-ENDS-

Released with the authority of the Board.

For further information contact:

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/fefbb335-e1a.pdf