Highlights

• High-grade gold and silver results received for first drill holes at El Refugio target, Cometa Project, Copalquin District, Mexico, with highlights including:
  • 3.85m @5.97 g/t AuEQ (4.48 g/t gold and 119.3 g/t silver) from 146m (CDH-015), including 2.15m @ 8.66 g/t AuEQ (6.32 g/t gold and 186.7 g/t silver) from 146.5m;
  • 3.00m @ 2.71 g/t AuEQ (2.05 g/t gold and 52.3 g/t silver) from 159m (CDH-019)
  • 8.70m @ 4.24 g/t AuEQ (3.07 g/t gold and 93.6 g/t silver) from 176.85m (CDH-020), including
  • 2.9m @ 9.82 g/t AuEQ (7.52 g/t gold and 184.3 g/t silver) from 176.8m; plus
  • 1.50m @ 6.55 g/t AuEQ (5.08 g/t gold and 117.5 g/t silver) from 169.0m (CDH-020)
• Holes CDH-022 to 025 have also intersected the Refugio breccia (assays pending)
• Initial systematic drilling at El Refugio target (Target 2) has successfully intercepted the upper part of the Refugio structure with up to 32m having detectable gold and silver, and within this zone the high-grade intercepts reported above.
• The shallower drill holes (CDH-016, CDH-018 and CDH-021) cut the structure above the main mineralized zone.
• Drilling of the El Cometa target (Target 3) at the El Cometa Project has been completed (holes CDH-026 – 036) with assays pending
• This week the drill will be moved 800m east to the Reyes Project in the Copalquin District to complete holes at the Los Pinos and Los Reyes targets and later, holes at two other projects, Constancia and Apolonia.

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

Mithril CEO and Managing Director, John Skeet, commented:

“To date, the drilling at the first project area in the district has successfully intercepted high-grade veins and given valuable data for three different vein groups at the Cometa Project. The excellent reported intercepts at the El Refugio target successfully located the structure with subsequent holes testing at depth. We look forward to receiving the remainder of the drill results for the Cometa Project. In November, we are drill testing three other projects in the Copalquin District where historic high-grade production from multi-level workings has been reported.

The Copalquin District is a large epithermal centre for gold and silver, the maiden drill program has provided important additional data and given clear evidence of multiple mineralisation events typical of large systems. The Mithril team has only scratched the ‘tip of the iceberg’.”

1 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.

Drilling Progress – Cometa Project

The first drill holes have been completed in the El Refugio target at the Cometa Project. The systematic drilling has successfully intercepted the Refugio structure with broad brecciated and mineralised zones. Hole CDH-015 intercepted  a broad mineralised zone and within that the reportable intercept of 3.85m @5.97 g/t AuEQ (4.48 g/t gold and 119.3 g/t silver) from 146m, including 2.15m @ 8.66 g/t AuEQ (6.32 g/t gold and 186.7 g/t silver) from 146.5m.

Hole CDH-020 intercepted 8.70m @ 4.24 g/t AuEQ (3.07 g/t gold and 93.6 g/t silver) from 176.85m, including 2.9m @ 9.82 g/t AuEQ (7.52 g/t gold and 184.3 g/t silver) from 176.85m; plus 1.50m @ 6.55 g/t AuEQ (5.08 g/t gold and 117.5 g/t silver) from 169.0m.

Evidence in the core of multiple mineralisation events is a strong indication of continuing grades for gold and silver at depth.

Figures 3 and 4 show core with high-grade intercepts from CDH-015 and CDH-020, respectively. The mineralized intercept in CDH-020 is within and on the margins of a rhyolite dyke, part of the dykes and domes that Mithril interprets as being the heat sources driving the hydrothermal system.

Additionally, Canadian junior UC Resources, drilled the Refugio target in 2004-2005. In February 2005, UC Resources reported,

‘UC-24 drilled from the same drill pad as UC-23 intersected 7.90 metres of 6.54 g/t gold and 140.09 g/t silver which included 3.90 metres of 12.26 g/t gold and 220.38 g/t silver.

UC-23 drilled on the El Refugio zone intersected 8.0 metres of 1.26 g/t gold and 79.50 g/t silver which included 6.00 meters of 1.57 g/t gold and 88.33 g/t silver.

UC-21 intersected 10.11 metres of 2.20 g/t gold and 199.90 g/t silver recently discovered on the new El Refugio zone 350 metres west of El Cometa.’ ²

Drilling of targets 1 to 3 at the Cometa Project in the Copalquin District has now been completed. Assay results are pending for the remainder of the El Refugio target and for the Cometa target.

November 2020 – Drilling Activity at Reyes, Constancia and Apolonia Projects, Copalquin Mining District

The drill rig is being moved 800m east to target 4, Los Pinos for the first ever drill holes, then a further 500m east to target 5, the multi-level mine of Los Reyes, both within the Reyes Project.

Late November three holes will be drilled at target 6, the past-producing multi-level mine of La Constancia within the Constancia Project. Extensive historic sampling identifies this as a significant target for gold and silver. Further mapping at this important area, located 1,900m east of target 5 will be completed. The Constancia Project also includes the Fraguita, Guadalupe and Jabali mines. (see Figure 7).

At the Apolonia Project, one kilometre south of the Reyes Project, two holes are planned beneath four parallel veins of the historic San Manuel mine workings. The veins, stopes and exstensive historic sampling in these workings (Figure 3) indicate significant past production from San Manuel mine. There is historic infrastructure in the area consisting of an aerial tramway and the ruins of a flotation mill below the San Manuel mine, part of the Apolonia Project. The historic workings cover approximately 75 metres vertically and 200 metres of strike.

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.

ABOUT THE COPALQUIN GOLD SILVER DISTRICT

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.

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/d41563f7-3fd.pdf