Highlights

• A maiden JORC indicated and inferred mineral resource has been estimated for the first drill target area of El Refugio–La Soledad in the Copalquin District, Mexico
• 2,416,000 tonnes @ 4.80 g/t gold, 141 g/t silver for 373,000 oz gold plus 10,953,000 oz silver (Total 529,000 oz AuEq*) using a cut-off grade of 2.0 g/t AuEq*
• 28.6% of the resource tonnage is classified as indicated
• Copalquin is a district scale opportunity with El Refugio-La Soledad one of several drill targets
• Drilling is continuing at El Refugio–La Soledad including along strike from the recently announced hole CDH-094 with 18.67m @ 9.64 g/t gold, 278.8 g/t silver (5 Nov. 2021)

Mithril Resources Ltd (ASX: MTH) (Mithril or the Company) is pleased to release its maiden JORC mineral resource estimate for the first target area at its Copalquin Gold Silver District, Mexico.

Mithril CEO and Managing Director, John Skeet, commented:

“This is an excellent result for our maiden mineral resource estimate (MRE) from the first 14 months of drilling in the Copalquin District with a single diamond core drill rig. The maiden MRE is robust and high-grade using a cut- off grade (2.0g/t AuEq*) appropriate for underground mining, demonstrating the economic potential for our first target area in the district and advancing Mithril’s goal to become a highly profitable gold-silver producer from high- grade resources. The data generated allows us to efficiently expand and infill the Refugio – La Soledad target, whilst continuing expansive exploration in the Copalquin district with its multiple gold-silver targets and historic mines. We look forward to updating this first MRE for the Copalquin District in 2022”

The maiden MRE for the El Refugio – La Soledad target area was completed by AMC Consultants and the full report is attached.

*AuEq. = gold equivalent calculated using and gold:silver price ratio of 70:1. That is, 70 g/t silver = 1 g/t gold. The metal prices used to determine the 70:1 ratio are the cumulative average prices for 2021: gold USD1,798.34 and silver: USD25.32 (actual is 71:1) from kitco.com

WORK FOR REMAINDER OF 2021

Some of the main items for the remainder of 2021

• Extension of drill holes CDH-080 and 081 at the eastern side of El Refugio
• Follow up drilling of drill hole CDH-072 which intercepted 6.80m with 74.0 g/t gold and 841 g/t silver
• Drilling at Refugio West to follow up drill hole CDH-094 with 18.67m @ 9.64 g/t gold, 278.8 g/t silver
• Mapping further west of El Refugio at El Gallo to develop this drill target for 2022
• Log and dispatch all drill core for assay before the Christmas break mid December 2021
• Drilling to resume early January 2022

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:

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 information in this announcement that relates to Mineral Resources is reported by Mr Rodney Webster, Principal Geologist at AMC Consultants Pty Ltd (AMC), who is a Member of the Australasian Institute of Mining and Metallurgy. The report was peer reviewed by Andrew Proudman, Principal Consultant at AMC. Mr Webster is acting as the 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, for the reporting of the Mineral Resource estimate. A site visit was carried out by Jose Olmedo a geological consultant with AMC, in September 2021 to observe the drilling, logging, sampling and assay database.

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/2931852a-262.pdf