Highlights

• Large hydrothermal gold-silver system identified at the El Refugio target, Cometa project with 15- 30m quartz breccia zones intercepted with high grade veins

• Four further drill holes at the El Refugio target, with highlights including:
  • 5.05m @ 3.48 g/t AuEq.1 (1.93 g/t gold and 123.7 g/t silver) from 227.4m (CDH-022), including
    • 2.15m @ 5.03 g/t AuEq.1 (3.28 g/t gold and 140 g/t silver);
  • 15.75m @ 2.05 g/t AuEq.1 (1.59 g/t gold and 36.57 g/t silver) from 123.6m (CDH-024), including
    • 5.96 m @ 3.93 g/t AuEq.1 (3.27 g/t gold and 53.33 g/t silver) and
    • 1m @ 16.63 g/t AuEq.1 (14.75 g/t gold and 150.0 g/t silver), plus
    • 0.8m @ 6.18 g/t AuEq.1 (3.87 g/t gold and 185.0 g/t silver)
  • 7.0m @ 1.22 g/t AuEq.1 (0.80 g/t gold and 33.56 g/t silver) from 131.0m (CDH-025), including
    • 2.0m @ 2.68 g/t AuEq.1 (1.81 g/t gold and 69.6 g/t silver)

(within 27.55m @ 0.66 g/t AuEq. (0.41 g/t gold and 19.8 g/t silver))

• The drilling at the El Refugio target has intercepted what is now understood to be the top of a large hydrothermal system at the Cometa project in the Copalquin district

• The above intercepts follow on the from the previously reported high grade intercepts at El Refugio:
  • 3.85m @5.97 g/t AuEq.1 (4.48 g/t gold and 119.3 g/t silver) from 146m (CDH-015), including
    • 2.15m @ 8.66 g/t AuEq.1 (6.32 g/t gold and 186.7 g/t silver);
  • 8.70m @ 4.24 g/t AuEq.1 (3.07 g/t gold and 93.6 g/t silver) from 176.85m (CDH-020), including
    • 2.9m @ 9.82 g/t AuEq.1 (7.52 g/t gold and 184.3 g/t silver) plus
    • 1.50m @ 6.55 g/t AuEq.1 (5.08 g/t gold and 117.5 g/t silver) from 169.0m (CDH-020)

• Additionally, the first drill holes have been completed at the Reyes project and the Constancia project with assays pending

• Drilling at the Apolonia project for two drill holes has commenced to complete the maiden drill program for 2020.

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.

Assays for further drill holes at the El Refugio target, indicate the top of a large and extensive hydrothermal system at the Cometa project. The Cometa project also includes the La Soledad target where very high-grade intercepts were reported in August and September 2020. The drilling at the El Refugio target now extends for over 300m.

Mithril CEO and Managing Director, John Skeet, commented:

“The maiden drill holes at the El Refugio target have shown the area to be part of a large hydrothermal system. The broad quartz breccia zones punctuated with high grade gold-silver veins has been drill tested over 300m and is building the model of a large gold-silver system that is characterised by extensive surface alteration and rhyolite dome intrusions. This alteration is observed to extend at least 1.5km west of El Refugio in addition to the widespread alteration and rhyolitic dome intrusives in the Copalquin district. The very high grade La Soledad and Leon veins intercepted at the start of the program are also part of this larger hydrothermal system. The extension of the Cometa project at depth and along strike is a key feature of the exploration for 2021.

The first drill holes completed at the Reyes, Constancia and Apolonia projects will provide further indication of the gold and silver grade potential in these areas. We have a very large area to explore in this complex district with many strong targets identified by extensive surface mapping and supported by under-ground rock chip sampling. 2021 will be an exciting year for Mithril as we continue to develop this large epithermal centre for gold and silver.”

Drilling Progress – El Refugio Target, Cometa Project

The second batch drill holes have been completed in the El Refugio target at the Cometa Project. The drilling has continued to successfully intercept the Refugio structure with broad brecciated and mineralised zones including the following intercepts:

• Hole CDH-022 intercepted 5.05m @ 3.48 g/t AuEq1 (1.93 g/t gold and 123.7 g/t silver) from 227.4m, including 2.15m @ 5.03 g/t AuEq 1 (4.81 g/t gold and 128.13 g/t silver).

• Hole CDH-024 intercepted 15.75m @ 2.05 g/t AuEq1 (1.59 g/t gold and 36.57 g/t silver) from 223.6m including 5.96m @ 3.93 g/t AuEq1 (3.27 g/t gold and 53.33 g/t silver) including 1.0m @ 16.63 g/t AuEq (14.75 g/t gold and 150.0 g/t silver); plus 4.0m @ 1.74 g/t AuEq1 (1.10 g/t gold and 51.38 g/t silver including 0.8m @ 6.18 g/t AuEq1 (3.87 g/t gold and 185.0 g/t silver).

• Hole CDH-025 intercepted 7.0m @ 1.22 g/t AuEq1 (0.80 g/t gold and 33.56 g/t silver) from 131m, including 2.0m @ 2.68 g/t AuEq1 (1.81 g/t gold and 69.6 g/t silver); plus 1.85m @ 1.08 g/t AuEq1 (0.43 g/t gold and 51.8 g/t silver). The intercepts are within a broad low-grade zone of 27.44m @ 0.66 g/t AuEq1 (0.41 g/t gold and 19.8 g/t silver).

The above intercepts are in addition to the previously reported El Refugio target intercepts:

• 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).

• 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).

Refugio Target Commentary & Cross Sections

As we progress through the reconnaissance drilling program at the El Refugio target we are encouraged to observe that much of the very broad zone of quartz stockwork and breccia is mineralised with gold and silver. We also detect that there is a consistent zone of high-grade mineralisation within the overall breccia zone. These epithermal systems frequently evolve from hotter fluids producing crystalline quartz textures to cooler fluids more likely to deposit precious metals. Direct evidence for this is the broad zone of quartz stockwork and breccia at Refugio cored by breccias containing more chalcedonic quartz and increased concentrations of gold and silver. These observations direct us to drill deeper in the system to intercept the high-grade breccias as illustrated in the Copalquin District Geologic Model (Figure 1).

Future drilling at the El Refugio target will be to the west where it is open and down dip on the structure to progress deeper drilling. This is also the plan for the high-grade La Soledad target, also part of the Cometa Project where the advance reconnaissance drilling as part of the maiden drill program has directed the future drilling to continue west along strike.

Epithermal gold-silver deposits are typically deep long-life deposits of which there are several large epithermal gold- silver mines in the Copalquin region, namely San Dimas to the south, Palmarejo complex and Pinos Altos complex to the north. All these epithermal deposits have deep long-lived mines. Below in Figure 2, is a composite longitudinal section of Agnico’s Pinos Altos complex in this Sierra Madre Trend showing its initial open pit mines which commenced production in 2009 and the underground development extending 750 metres below surface and resources still open at depth.

Agnico reports production of 155,124 oz gold at total cash cost of USD639/oz gold from underground. Pinos Altos has proven and probable mineral reserves containing 957,000 ounces of gold and 24.5 million ounces of silver (14.5 million tonnes grading 2.06 g/t gold and 52.63 g/t silver) as of December 31, 2019.

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

Assay results are pending for one further El Refugio target hole, CDH-033, and drill holes for the El Cometa target CDH-026 to CDH-032 and CDH-034 to CDH-036. Additionally, samples from drill holes up to CDH-045 have been dispatched from site which includes samples from the scout drill holes at Reyes Project targets and the first two holes at the Constancia Project target.

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

The drill rig was moved to the Reyes Project and has completed a total of 5 exploratory holes at the Los Pinos and Los Reyes targets.

Three holes have also been drilled at the La Constancia target within the Constancia Project 1,900m east of the Los Reyes target. The Constancia Project also includes the Fraguita, Guadalupe and Jabali mines.

At the Apolonia Project, one kilometre south of the Reyes Project, two holes are being drilled beneath the historic San Manuel mine workings. The veins, stopes and exstensive historic sampling in these workings 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.

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 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 has 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.

-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://investi.com.au/api/announcements/mth/36c56e33-bed.pdf