Highlights

• First drilling campaign for 2021 completed at 3 targets in the Copalquin district, assays pending
• Holes successfully intercepted the targeted geological structures at El Refugio, La Soledad and Los Reyes
• Soil sampling programs completed within the Cometa Project and Reyes Project areas
• Drill and water supply being set up for next campaign to commence during March 2021 for holes at El Refugio and El Refugio West

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

Exploration work in the Copalquin District has progressed at a fast pace for the first two months of 2021 with the completion of 12 diamond drill holes and an extensive soil sampling program across 2 project areas with assay results pending.

The Mithril exploration team reported that several holes successfully intercepted the targeted geological structures at El Refugio, La Soledad and Los Reyes. There was abundant visible gold observed in a 15 cm section of vein in CDH-050 at Refugio. This vein was characterized by abundant black sulphide (ginguro) which is made up of silver sulphides and sulphosalts plus gold. The same interval also contained kaolinite, a clay mineral that only forms under very acidic conditions. Acid conditions in a low sulphidation system is an indicator of fluid-mixing which is known to be a very efficient trigger for gold/silver deposition. Gold has been seen in other holes including hole CDH-001 at La Soledad and CDH-053 at La Soledad.

Progress within the Copalquin District continues with drilling equipment and water supply being established for the next drilling campaign to commence during March 2021 for holes at El Refugio and El Refugio West.

Mithril Managing Director and CEO, John Skeet, commented:

“We are very pleased to be observing native gold and other important minerals in core sections drilled at El Refugio and eagerly await the assays from the external assay laboratory. Our first soil sampling program for 2021 has been completed with results also due for release shortly.”

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.

-ENDS-

Released with the authority of the Board.

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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://www.investi.com.au/api/announcements/mth/fcae871a-dbb.pdf