Highlights

• Assay results received for further 9 holes from the 5,000m maiden drill program
• Intercepted high grade in the La Soledad veins deeper and along strike from old workings.
• Further strong results for La Soledad include:
  • CDH-008 3.8m @ 2.58 g/t gold and 142.6 g/t silver from 111.7m
  • CDH-011 0.5m @ 6.78 g/t gold and 9.6 g/t silver from 108m, open workings from 108.5 to 111m, and 1.5m @ 6.65 g/t gold and 18.1 g/t silver from 111m
  • CDH-012 2.82m @ 2.37 g/t gold and 22.0 g/t silver from 206.9m
  • CDH-014 7.5m @ 6.74g/t gold and 158.1 g/t silver from 253.8m (Including 3.45m @ 11.52 g/t gold and 244.1 g/t silver from 253.8m)

Mithril Resources Limited [ASX: MTH] (“Mithril” or the “Company”) is pleased to advise that the first drilling at La Soledad, the first of six areas to be tested in the 5,000m maiden drill program, has been completed. The drilling successfully confirmed the bonanza grades of the La Soledad vein and intercepted additional high-grade gold and silver deeper and along strike in multiple veins (see cross section in figure 1 below).

Drilling at the El Refugio mine area is well advanced with 8 holes completed to date. The El Cometa mine area will be drilled after El Refugio in early October.

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

“At La Soledad, the drilling has confirmed the high grades for gold and silver and has indicated considerable size for the La Soledad mine area with multiple high-grade parallel veins intercepted in this preliminary program. We are very pleased with these first drill results and to have gained considerable understanding about this multiple high-grade vein system. We look forward to returning to La Soledad in the next program.

Drilling at the El Refugio target has progressed well during September with 8 holes completed. Drilling at El Cometa target will commence in October 2020.”

COMMENTARY ON RESULTS

As previously reported, hole CDH-001 successfully intercepted the La Soledad vein and has confirmed the previously reported bonanza gold and silver grades from historic drilling with 3m @ 34.72 g/t gold and 3,129.3 g/t silver from 111m including 1m @88.4 g/t gold and 6,750 g/t silver from 113m.

Hole CDH-002, 45m east towards the mine entrance, intersected 1m of open workings before intercepting high-grade gold and silver mineralisation with 4.55m @ 5.64 g/t gold and 325.7 g/t silver from 91.95m including 1.5m @9.82 g/t gold and 574 g/t silver from 95m. Hole CDH-002 also intercepted 0.5m @ 3.6 g/t gold and, 330 g/t silver from 115.2m. These veins are shallower than the La Soledad vein. A continuation of hole CDH-002 intercepted the La Soledad vein with 0.5m @ 9.27 g/t gold and 825.0 g/t silver from 141.2m    as well as a deeper 0.55m @ 1.84 g/t gold and 57.8 g/t silver from 188.3m towards the end of the hole. There were no reportable intercepts in holes CDH-003 or CDH-004.

Heavy rains affected some drill pads with holes CDH-005, 007 and 009 abandoned at shallow depths before reaching the target. No samples were taken from holes CDH-005, 007 or 009. Hole CDH-006 encountered open mine workings from 84.75m and was abandoned at 87.0m. No reportable intercept was encountered in CDH-006.

Hole CDH-008 intercepted a broad zone of gold and silver mineralisation including 3.8m @ 2.58 g/t gold and 142.6 g/t silver from 111.7m. Hole CDH-011 intercepted open workings with high grade intercepts in the hanging wall (0.5m @ 6.78 g/t gold and 9.6 g/t silver from 108m) and footwall (1.5m @ 6.65 g/t gold and 18.1 g/t silver from 111m) of the vein, respectively. Hole CDH-012 intercepted 3.5m @1.83 g/t gold and 21 g/t silver from 206.9m. Hole CDH-013 may have failed to reach the target and had no reportable intercept.

Hole CDH-014 intercepted high-grade of 7.5m @ 6.74 g/t gold and 158.1 g/t silver from 254.8m Including 3.45m @ 11.52 g/t gold and 244.1 g/t silver from 253.8m. This vein is deeper than the La Soledad vein and is interpreted to be the Leon Vein shown on old workings maps. The Leon vein was also intercepted and sampled in hole CDH-001, but did not return reportable values.

This first program of drilling at La Soledad has returned excellent results and provided significant data to better understand the potential of this vein system and its contribution to the Copalquin gold silver project. The historic intercept location data was not accurate and will be discarded for future.

1 Metal equivalent grades are reported using a 80:1 silver to gold price ratio. This ratio is based on the gold and silver prices reported on kitco.com as of 28 September, 2020 (actual ratio at that date 80.36:1).

COPALQUIN DRILLING AND EXPLORATION PROGRAM SUMMARY

Drilling is being performed by Globexplore, a large and highly experienced Mexican drilling contractor, using a man-portable diamond core rig capable of drilling HQ size core to depths of 400m. All holes will be downhole surveyed with some holes marked for oriented core, which is important for geologic understanding and mine design/planning.

The previously drilled areas of La Soledad-Refugio-Cometa are the first targets and the drilling team have a high degree of confidence in achieving strong results. Drilling will move across to Los Pinos and the multi- level mine of Los Reyes, extending the total strike length tested to 2 km. The expanded program will allow further drilling at the important multi-level mine areas of San Manuel and La Constancia as well as follow up holes at La Soledad-Refugio-Cometa. Drill target field work is ongoing.

Globexplore and the Company have coordinated measures to work within the Mexican Government guidelines established for safe work practices during the COVID-19 pandemic.

ABOUT THE COPALQUIN GOLD SILVER PROJECT

The Copalquin Gold Silver Project is located in Durango State, Mexico and covers an entire mining district of 70km2 containing over 32 historic Gold and Silver mines and workings. 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 on the company and our projects, please visit: www.mithrilresources.com.au

Contact:

Mithril Resources
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 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/39876388-68d.pdf