HIGHLIGHTS

Mithril Silver and Gold Limited (“Mithril” or “the Company”) (MTH:ASX) announces results from drilling at its Copalquin District project, Mexico.

Drilling has continued at the Target 1 area (El Refugio) in the Copalquin District with another project and globally significant drill intercept.

• CDH-159 was drilled into a structure on the eastern side of the Target 1 area (El Cometa) returning the highest-grade intercept drilled at the property to date (1,180 g/t x m AuEq¹):

• 33.00m @31.8 g/t gold, 274 g/t silver from surface, including
  • 7.00m @ 144 g/t gold, 1,162 g/t silver from 18m Including
  • 2.00m @ 495 g/t gold, 3,765 g/t silver from 20m plus including
  • 1.00m @ 26.9 g/t gold, 201 g/t silver from 28m

CDH-159 was designed to test the recently mapped and channel sampled structure that had been previously intersected by CDH-072 (6.8m 74.0 g/t gold, 840 g/t silver from 35.2m), from a different orientation. With this new data, a second hole has been drilled along strike (CDH-161) with assays pending. Three holes have been drilled down dip of the historic Refugio mine workings, where extensive mapping and channel sampling was completed earlier this year also with assays pending.

Drilling is currently in progress on the western side of the Target 1 resource area.

John Skeet, Mithril’s Managing Director and CEO commented:

“Hole CDH-159 is a globally significant >1,000 g/t AuEq¹ x metre drill hole at the maiden resource Target 1 area where we aim to 2X the (529koz @6.81 g/t AuEq ¹) resource in Q1 2025. The intercept includes a zone of lower grade material from surface plus a very high-grade zone from 16 metres down hole, including the typical bonanza gold and silver grades that are a hallmark of this important mining district.

With the exceptional dill results combined with our recent LiDAR survey, district access road upgrade works and development of the district geologic model, Copalquin continues to progress as another significant gold-silver district in Mexico’s prolific Sierra Madre Trend.”

COPALQUIN GOLD-SILVER DISTRICT, MEXICO

With 100 historic underground gold-silver mines and workings plus 198 surface workings/pits throughout 70km² of mining concession area, Copalquin is an entire mining district with high-grade exploration results and a maiden JORC resource. To date there are several target areas in the district with one already hosting a high-grade gold- silver JORC resource at El Refugio (529koz AuEq @6.81 g/t AuEq)¹ supported by a conceptional underground mining study completed on the maiden resource in early 2022 (see ASX announcement 28 February 2022 and metallurgical test work (see ASX Announcement 24 February 2024). There is considerable strike and depth potential to increase the resource at El Refugio and at other target areas across the district, plus the underlying geologic system that is responsible for the widespread gold-silver mineralisation.

With the district-wide gold and silver occurrences and rapid exploration success, it is clear the Copalquin District is developing into another significant gold-silver district like the many other districts in this prolific Sierra Madre Gold- Silver Trend of Mexico. These districts can host 1 – 5 million ounces of gold plus 50 – 100+ million ounces of silver.

¹ see ‘About Copalquin Gold Silver Project’ section for JORC MRE details and AuEq. calculation.

Drillhole Discussion

Five drillholes (CDH-155-159) are reported from the Target 1 area at El Refugio (1,250m top of ridge) and 900 metres southeast at the historic Copalquin Mine at elevation 905 metres at the Copalquin Creek elevation.

• CDH-159 intersected 33.00m @31.8 g/t gold, 274 g/t silver from surface
  • including 7.00m @ 144 g/t gold, 1,162 g/t silver from 18m,
  • including 2.00m @ 495 g/t gold, 3,765 g/t silver from 20m

and was designed to test the mineralisation along strike from the El Cometa historic mine on the eastern side of the Target 1 area and where previous drill hole CDH-072 had intersected 6.8m 74.0 g/t gold, 840 g/t silver from

35.2m. CDH-159 and CDH-072 are located in a zone interpretated by core logging and geology mapping as a close to the vertical fault zone crosscutting the Refugio low angle east-west structure.

In the Cometa historic underground workings, after an analysis of the rock chips sampled to date, historical and recent assays tend to increase in Au and Ag values possibly enriched by North-West trending (close to Northly) and near vertical structures, that can be acting as feeders.

The intention of the drilling in the Cometa area is to establish the vertical and horizontal continuity with Refugio and define high-grade zone previously drilled and test if the high-grade is associated to this high angle faulting

The definition of post mineralization faulting, that will cut and displace the mineralization, is also part of this exploration program and worth highlighting that we are sitting on a complex faulting system that needs to be considered.

Major alteration in the Cometa area, the same as Los Reyes, Los Pinos and El Gallo, typically indicates that we are located along the margins of a major vein system.

Between this fault zone gold is occurring as free gold and assays returned as bonanza grades can be coming along this vertical fault zone, crosscutting the low angle East-West Refugio structure.

Hole CDH-161 cuts a phreatomagmatic breccia in an interval greater than 15m and below this cuts a greater than 30m interval of a hydrothermal breccia with assays pending.

CDH-155 and CDH-156 were the last of the first five holes drilled at the historic Copalquin mine target area. Both holes did not return reportable intercepts but have provided geological information supporting the development of the geologic model. Mapping and sampling have continued in this area and along strike where there are multiple historic mine workings as we continue to develop this new area.

CDH-157 was designed to test below the southern end of level 4 of the historic La Soledad workings. This hole intercepted 1.00m @ 12.65 g/t gold, 13.2 g/t silver from 123m plus 2.45m @ 0.87 g/t gold, 52.62 g/t silver from 143.60m.

CDH-158 was the first hole to test the newly mapped 480 structure at El Cometa with no reportable intercept.

CDH-160 was the first hole drilled into a recently mapped NW trending structure at El Cometa and intersected 9.60m @ 0.23 g/t gold, 7.0 g/t silver from 6.50m.

CDH-162-164 have been drilled down dip from the El Refugio historic workings to drill test an area shallower than the maiden resource model.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

The Company philosophy operating in the Copalquin district is to support communities via children’s education and providing employment opportunities. This includes supporting community schools in the district, employing twenty people from within the district under the federal employment laws, supporting routine medical visits and developing infrastructure in the district for long term benefit. This includes the municipal access road, connecting to the township of El Durazno 12 km east of the Copalquin District, with support for the municipal upgrade works scheduled for commencement in Q3 2024.

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.

Within 15 months of drilling in the Copalquin District, Mithril delivered a maiden JORC mineral resource estimate demonstrating the high-grade gold and silver resource potential for the district. This maiden resource is detailed below (see ASX release 17 November 2021)^{^}.

• 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

* The gold equivalent (AuEq.) values are determined from gold and silver values and assume the following: 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. Metallurgical recoveries are assumed to be approximately equal for both gold and silver at this early stage. Actual metallurgical recoveries from test work to date are 96% and 91% for gold and silver, respectively. In the Company’s opinion there is reasonable potential for both gold and silver to be extracted and sold. Actual metal prices have not been used in resource estimate, only the price ratio for the AuEq reporting.

^ The information in this report that relates to Mineral Resources or Ore Reserves is based on information provided in the following ASX announcement: 17 Nov 2021 – MAIDEN JORC RESOURCE 529,000 OUNCES @ 6.81G/T (AuEq*), which includes the full JORC MRE report, also available on the Mithril Resources Limited Website.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Mining study and metallurgical test work supports the development of the El Refugio-La Soledad resource with conventional underground mining methods indicated as being appropriate and with high gold-silver recovery to produce metal on-site with conventional processing.

Mithril is currently exploring in the Copalquin District to expand the resource footprint, demonstrating its multi- million-ounce gold and silver potential.

Mithril has an exclusive option to purchase 100% interest in the Copalquin mining concessions by paying US$10M on or any time before 7 August 2026 (option has been extended by 3 years). Mithril has reached an agreement with the vendor for an extension of the payment date by a further 2 years (bringing the payment date to 7 August 2028).

-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 announcement that relates to metallurgical test results, mineral processing and project development and study work has been compiled by Mr John Skeet who is Mithril’s CEO and Managing Director. Mr Skeet is a Fellow of the Australasian Institute of Mining and Metallurgy. This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code.

Mr Skeet 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 Skeet 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.

The information in this announcement that relates to sampling techniques and data, exploration results and geological interpretation for Mithril’s Mexican project, has been compiled by Mr Ricardo Rodriguez who is Mithril’s Project Manager. Mr Rodriguez is a Member of the Australasian Institute of Mining and Metallurgy. This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code.

Mr Rodriguez 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 Rodriguez 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://www.listcorp.com/asx/mth/mithril-silver-and-gold-limited/news/mth-drills-144-g-t-gold-1-162-g-t-silver-over-7-0-metres-3087146.html