Highlights

• Thick high-grade intercept at El Refugio a further 95m along strike with:
  • 18.67m @ 9.64 g/t gold, 278.8 g/t silver from 144.0m, (CDH-094) including
  • 9.30m @ 17.9 g/t gold, 482.2 g/t silver from 148.89m
• CDH-094 was drilled in the valley to the west of the main El Refugio ridge
• Drill hole CDH-096 finished at 504m with quartz breccia intervals within the last 50m of the drill hole (deepest intercept to date, awaiting assays)
• Infill drill assays received for drill database which will be included in our first resource estimate in the district with highlights below
  • 2.00m @ 9.90 g/t gold, 122 g/t silver from 286.0m (CDH-085), including
  • 1.00m @ 19.0 g/t gold, 209 g/t silver from 286.0m
• 12.29m @ 4.08 g/t gold, 85.2 g/t silver from 250.71m (CDH-086), including
  • 1.50m @ 8.98 g/t gold, 137 g/t silver from 250.71m, and including
  • 2.00m @ 15.35 g/t gold, 333 g/t silver from 258.0m
• 8.90m @ 0.97 g/t gold, 5.53 g/t silver from 252.1m (CDH-087), plus
  • 3.00m @ 3.71 g/t gold, 79.0 g/t silver from 349.0m
• Maiden JORC mineral resource estimate (MRE) on schedule for Q4 2021
• Metallurgical test work commencing November 2021
• Targets expanded for 2022 for the district scale Copalquin property, Mexico

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 intercept in drill hole CDH-094 demonstrates the Refugio structure continuity west to the next ridge with thick high-grade gold-silver mineralisation. Drilling is continuing at El Refugio with hole CDH-096, our deepest hole to date (504m), with a broad quartz breccia zone in the last 50m of the hole. The intercepts are in line with the geologic model and El Refugio continues to expand at depth and west, outside the first resource area within our 70 square kilometre Copalquin Mining District.”

Assays for drill holes CDH-085 to CDH-090 plus CDH-094 have been received. Assay turn-around times from the ALS Vancouver laboratory have increased. Samples from CDH-094 were sent to another ALS laboratory allowing those results to be available in a shorter time. Holes CDH-085 to CDH-090 were drilled to complete the database for the maiden mineral resource estimate (MRE). Drilling has continued at El Refugio, with a series of deeper holes and holes further to the west. On the western side of the centre ridge, the structure is stronger depth and has continued across the valley to the next ridge with the excellent high-grade intercept from drill hole CDH-094 (18.67m @ 9.64 g/t gold, 278.8 g/t silver from 144.0m including 9.30m @ 17.9 g/t gold, 482.2 g/t silver from 148.89m, plus 3.00m @ 1.88 g/t gold, 61.7 g/t silver from 137m).

CDH-096 is a deep hole drilled in the central part of El Refugio, to the maximum depth with the drill pipe on site. The hole stopped in quartz breccia with several quartz breccia zones within the last 50 metres of the 504 metre drill hole.

A drill hole to follow up the high-grade gold-silver intercept in CDH-072 (6.80m @ 74.0 g/t gold, 840.5 g/t silver from 35.2m) is scheduled to further test this structure on the eastern side of El Refugio at El Cometa. The drill will then be moved by helicopter to follow up the intercept in CDH-094 (see Figure 3 below).

MAIDEN RESOURCE ESTIMATE PROGRESS

The independent site visit has been completed and the estimation work is in progress for Q4 2021 reporting. Highlights of the most recent holes CDH-085 to CDH-090 within the El Refugio structure are shown below with details of all intercepts given in Table 1 in the Appendices. Drilling at El Refugio has continued to produce reportable gold-silver intercepts from all drill holes.

• 2.00m @ 9.90 g/t gold, 122 g/t silver from 286.0m (CDH-085), including
  • 1.00m @ 19.0 g/t gold, 209 g/t silver from 286.0m, plus
  • 4.00m @ 1.51 g/t gold, 10.0 g/t silver from 307.0m, plus
  • 1.00m @ 1.43 g/t gold, 3.00 g/t silver from 319.0m, plus
  • 1.00m @ 0.97 g/t gold, 24.0 g/t silver from 324.0m

• 12.29m @ 4.08 g/t gold, 85.2 g/t silver from 250.71m (CDH-086), including
  • 1.50m @ 8.98 g/t gold, 137 g/t silver from 250.71m, and including
  • 2.00m @ 15.35 g/t gold, 333 g/t silver from 258.0m, plus
  • 1.00m @ 0.10 g/t gold, 227 g/t silver from 270.0m, plus
  • 2.00m @ 0.84 g/t gold, 33 g/t silver from 287.0m, plus
  • 1.38m @ 0.84 g/t gold, 19 g/t silver from 294.62m, plus
  • 1.05m @ 0.46 g/t gold, 52 g/t silver from 301.95m

• 8.90m @ 0.97 g/t gold, 5.53 g/t silver from 252.1m (CDH-087), plus
  • 1.00m @ 0.59 g/t gold, 64.0 g/t silver from 272.0m, plus
  • 0.54m @ 2.25 g/t gold, 12.0 g/t silver from 301.92m, plus
  • 3.00m @ 3.71 g/t gold, 79.0 g/t silver from 349.0m

• 2.20m @ 0.65 g/t gold, 24.9 g/t silver from 240.0m (CDH-088), plus
  • 7.00m @ 0.94 g/t gold, 40.6 g/t silver from 254.0m, plus
  • 6.20m @ 1.15 g/t gold, 37.8 g/t silver from 284.5m

(Awaiting assays for CDH-091 to CDH-093)

• 18.67m @ 9.64 g/t gold, 278.8 g/t silver from 144.0m, (CDH-094) including
  • 9.30m @ 17.9 g/t gold, 482.2 g/t silver from 148.89m, plus
  • 3.00m @ 1.88 g/t gold, 61.7 g/t silver from 137m

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.

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.

-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/6ae48b3b-c5b.pdf