Highlights

• High-grade intercepts in CDH-079 and CDH-080 extending the El Refugio high-grade gold-silver ‘clavo’ 80m further east:
  • 12.4m @ 7.60 g/t gold, 332 g/t silver from 86.6m (CDH-079), including
    4.19m @ 18.1 g/t gold, 810 g/t silver from 90.0m.
    
  • 6.11m @ 5.08 g/t gold, 197 g/t silver from 112.19m (CDH-080), including
    2.30m @ 9.47 g/t gold, 399 g/t silver from 116.0m.

• First of several deep holes around the ’77 clavo’ intercept (8.26m @ 80.3 g/t gold, 705 g/t silver) has been completed, with coarse gold with silver sulphide mineralisation observed in drill core
• Consulting firm appointed for JORC compliant maiden resource estimation at El Refugio

Mithril Resources Ltd (ASX: MTH) (Mithril or the Company) is pleased to release further exploration and drilling results at its Copalquin Gold Silver District, Mexico.

Mithril CEO and Managing Director, John Skeet, commented:

“Drilling on the eastern side of El Refugio extends the high-grade gold and silver 80 metres east. The broad, high-grade intercepts provide a significant boost to the resource potential in this part of El Refugio. Additionally, a program of deep holes proximal to the bonanza grade intercept of hole CDH-077 has commenced consisting of 6 holes to fill the area up and down dip of the intercept and to the west. The first of these holes is complete, with gold and silver sulphide mineralisation observations consistent with previous El Refugio structure intercepts.

For the El Refugio maiden resource estimation, AMC Consultants has been appointed and will commence working with our geological team over the coming weeks. We look forward to continuing our work at El Refugio to establish it as our first high-grade resource area for the district”

Assay results for two drill holes have been received continuing to expand the El Refugio structure to the east with high- grade gold-silver intercepts. Holes CDH-079 and CDH-080 were designed to test the eastern extents of the high-grade ‘clavo’ with the aim of providing infill data in this area for the maiden resource estimate work. Drill hole CDH-079 intercepted high-grade gold and silver with 12.4 metres at 7.60 g/t gold and 332 g/t silver from 86.6 metres down hole. Drill hole CDH-080 was drilled further down dip and intercepted 6.11 metres at 5.08 g/t gold and 197 g/t silver from 112.19 metres down hole. The pierce points for the above two drill holes are shown on the following long section in Figure 1 with the extension of the high-grade zone. Two additional holes have been completed further east with assays pending. Drill holes are planned up dip of these holes to further test the El Cometa structures, where drill hole CDH-072 intercepted 6.80m at 74.0 g/t gold and 841 g/t silver from 35.2 metres down hole.

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:

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://investi.com.au/api/announcements/mth/1db1e6b4-f06.pdf