Craig Sharpe – Non-Executive Chair John Skeet – Managing Director & CEO Garry Thomas – Non-Executive Director Stephen Layton – Non-Executive Director David Toyoda – Independent Non-Executive Director Justyn Stedwell– Company Secretary
ASX ANNOUNCEMENT
10 December 2024
DIRECTORS
Craig Sharpe – Non-Executive Chair
John Skeet – Managing Director & CEO
Garry Thomas – Non-Executive Director
Stephen Layton – Non-Executive Director
David Toyoda – Independent Non-Executive Director
Justyn Stedwell– Company Secretary
MITHRIL SILVER AND GOLD LIMITED
ACN: 099 883 922
ASX: MTH, TSXV:MSG
www.mithrilsilvergold.com
REGISTERED OFFICE
The Block Arcade
Level 3, Suite 324, 96 Elizabeth St
Melbourne VIC 3000
T: +61 3 9088 2049
PROGRESS AND DISTRICT EXPLORATION EXPANSION, COPALQUIN
HIGHLIGHTS
Mithril Silver and Gold Limited (“Mithril” or “the Company”) (MTH:ASX, MSG:TSXV) provides an update for
current drilling at the Target 1 area and the program for 2025 at its Copalquin Silver-Gold District project,
Durango State, Mexico.
• The second stage of the 9,000 metre drill program recently commenced on the eastern side of
the Target 1 resource area at El Cometa where recent drill hole CDH-159 intercepted 33m from
surface at 31.8 g/t gold and 274 g/t silver (including 7m at 144 g/t gold and 1,162 g/t silver from
18m)1
• ~1,500 metres of core drilling have been completed since restarting in November after a
scheduled break for drill maintenance and drill hole location update
• First two holes of this second stage of the campaign are at the laboratory, the next has left site,
two more being logged and sampled and a sixth hole commencing, all on the eastern side of the
Target 1 area at El Cometa where we are expanding the resource footprint
• The Target 1 area maiden resource2 update is on schedule for end of Q1 2025
• The municipal access road upgrade is progressing well and on schedule for completion late
March 2025 by which time drilling is scheduled to commence at the first of two further advanced
target areas in the district
• The road upgrade and current site preparations will facilitate the significantly expanded and
fully funded exploration activities (A$12.5m placement 28 October 2024), which includes
completion of ~40,000 metres additional drilling by the end of 2025
John Skeet, Mithril’s Managing Director and CEO commented:
“Drilling is progressing well at the Target 1 resource area, the first of several targets at our district scale high-grade
Copalquin silver and gold project. With ~1,500 metres completed since the recent restart, we have now completed 6,300
metres of the expanded 9,000 metre Target 1 resource update drill program, announced late June 2024. The recent drill
core logging supports the ‘big picture’ geologic model for the widespread silver and gold mineralisation across this 10 km
wide district. Preparations are on track for the major expansion of exploration activities, which includes commencement
of drilling at two further resource target areas during 2025 and development and testing of the district geologic model for
this large epithermal silver-gold system. Upgrading of the Copalquin District municipal access road is progressing well,
facilitating the expanded drilling activities for 2025 and beyond. With the significant treasury and established 70km2 silver-
gold project in Mexico’s prolific Sierra Madre Trend, Mithril is on track for exceptional progress and news flow throughout
2025.
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-
1 See ASX announcement MTH Drills 144 g/t Gold, 1,162 g/t Silver over 7.0 metres dated 20 September 2024
2 See ‘About Copalquin Gold Silver Project’ section for JORC MRE details and AuEq. calculation.
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silver JORC resource at El Refugio (529koz AuEq @6.81 g/t AuEq)2 supported by a conceptional underground
mining study completed on the maiden resource in early 2022 ( see ASX announcement 01 March 2022 and
metallurgical test work (see ASX Announcement 25 February 2022). 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.
Drilling is in progress at the Target 1 drill area where the current maiden resource is scheduled to be updated by
the end of Q1 2025. Channel sampling work, using a diamond rock saw, has continued at the Target 1 area and
immediately to the south towards the Copalquin creek, as highlighted below in Figure 1.
Figure 1 LiDAR hill shade image with the historic workings identified across the district and 2020-2022 highlight drill and channel sample results.
Target 1 area current drilling location, channel sampling area and the high priority drill target areas of Las Brujas-El Peru and La Constancia-El
Jabali. Several new areas highlighted across the district for follow-up work
Figure 3 below, shows the location of the historic underground mine workings relative to the maiden resource block
model at the Target 1 area. Drilling has been in progress in this area with a total of 9,000m to be completed prior
to a resource update late Q1 2025, aiming to double the resource at Target 1.
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Figure 3 Map showing the locations of the historic underground workings of El Cometa, La Soledad and El Refugio relative to the maiden resource
block model of November 2021, (see About Copalquin section at end of this Announcement for maiden resource details)
Area of current
drilling
Figure 2 Top left and right - Night drilling at El Cometa on eastern side of the Target 1 resource area with drill core laid out as part of
orientation process. Bottom left and right – municipal road upgrade works, facilitating the expanded exploration program for the Copalquin
District in 2025
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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
commencing in October 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)^ and NI43-101 Technical Report filed on SEDAR+
• 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
Tonnes
(kt)
Tonnes
(kt)
Gold
(g/t)
Silver
(g/t)
Gold Eq.*
(g/t)
Gold
(koz)
Silver
(koz)
Gold Eq.*
(koz)
El Refugio Indicated 691 5.43 114.2 7.06 121 2,538 157
Inferred 1,447 4.63 137.1 6.59 215 6,377 307
La Soledad Indicated - - - - - - -
Inferred 278 4.12 228.2 7.38 37 2,037 66
Total Indicated 691 5.43 114.2 7.06 121 2,538 157
Inferred 1,725 4.55 151.7 6.72 252 8,414 372
TOTAL 2,416 4.80 141 6.81 373 10,953 529
Table 1 - Mineral resource estimate El Refugio – La Soledad using a cut-off grade of 2.0 g/t AuEq*
* 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 go ld 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.
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Page 5
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).
Figure 4 – Copalquin District location map with locations of mining and exploration activity within the state of Durango
-ENDS-
Released with the authority of the Board.
For further information contact:
John Skeet
Managing Director and CEO
+61 435 766 809
Mark Flynn
Investor Relations
+61 416 068 733
Competent Persons Statement - JORC
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 Securi ties Exchange has not reviewed and does not accept
responsibility for the accuracy or adequacy of this release.
www.mithrilsilvergold.com
Page 6
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.
Qualified Persons – NI 43-101
Scientific and technical information in this Report has been reviewed and approved by Mr John Skeet (FAUSIMM,
CP) Mithril’s Managing Director and Chief Executive Officer. Mr John Skeet is a qualified person within the meaning
of NI 43-101.
ASX ANNOUNCEMENT
10 December 2024
DIRECTORS
Craig Sharpe – Non-Executive Chair
John Skeet – Managing Director & CEO
Garry Thomas – Non-Executive Director
Stephen Layton – Non-Executive Director
David Toyoda – Independent Non-Executive Director
Justyn Stedwell– Company Secretary
MITHRIL SILVER AND GOLD LIMITED
ACN: 099 883 922
ASX: MTH, TSXV:MSG
www.mithrilsilvergold.com
REGISTERED OFFICE
The Block Arcade
Level 3, Suite 324, 96 Elizabeth St
Melbourne VIC 3000
T: +61 3 9088 2049
JORC Code, 2012 Edition – Table 1
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling
techniques
• Nature and quality of sampling (eg cut
channels, random chips, or specific
specialised industry standard
measurement tools appropriate to the
minerals under investigation, such as
down hole gamma sondes, or handheld
XRF instruments, etc). These examples
should not be taken as limiting the
broad meaning of sampling.
• Include reference to measures taken to
ensure sample representivity and the
appropriate calibration of any
measurement tools or systems used.
• Aspects of the determination of
mineralisation that are Material to the
Public Report.
• In cases where ‘industry standard’ work
has been done this would be relatively
simple (eg ‘reverse circulation drilling
was used to obtain 1 m samples from
which 3 kg was pulverised to produce a
30 g charge for fire assay’). In other
cases more explanation may be
required, such as where there is coarse
gold that has inherent sampling
problems. Unusual commodities or
mineralisation types (eg submarine
nodules) may warrant disclosure of
detailed information.
• Samples for the Copalquin, Mexico drill programs consist of ½ HQ
core cut lengthwise with a diamond saw. Intervals are nominally 1
m but may vary between 1.5 m to 0.5 m based on geologic
criteria.
• Deeper portions of holes from CDH-075 onward consist of ½ NQ
core. Sample sizes are tracked by core diameter and sample
weights.
• The same side of the core is always sent to sample (left side of
saw).
• Reported intercepts are calculated as either potentially
underground mineable (below 120m below surface) or as
potentially open-pit mineable (near surface).
• Potentially underground mineable intercepts are calculated as
length weighted averages of material greater than 1 g/t AuEQ_70
allowing up to 2m of internal dilution.
• Potentially open-pit mineable intercepts are calculated as length
weighted averages of material greater than 0.25 g/t AuEQ_70
allowing for up to 2m of internal dilution.
• Rock chip sampling is done with hammer and chisel along
continuous chip lines oriented perpendicular to the mineralized
structure. The samples are as representative as possible.
Drilling
techniques
• Drill type (eg core, reverse circulation,
open-hole hammer, rotary air blast,
auger, Bangka, sonic, etc) and details (eg
core diameter, triple or standard tube,
depth of diamond tails, face-sampling
bit or other type, whether core is
oriented and if so, by what method, etc).
• Drilling is done with an MP500 man-portable core rig capable of
drilling HQ size core to depths of 400 m. Core is recovered in a
standard tube. Less than 7% of the total core drilled is NQ size
core (as of 2022-01-15).
Drill sample
recovery
• Method of recording and assessing core
and chip sample recoveries and results
assessed.
• Measures taken to maximise sample
recovery and ensure representative
nature of the samples.
• Whether a relationship exists between
sample recovery and grade and whether
• Drill recovery is measured based on measured length of core
divided by length of drill run.
• Recovery in holes CDH-001 through CDH-025 and holes CDH-032
through CDH-077 was always above 90% in the mineralized
zones. Detailed core recovery data are maintained in the project
database.
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Criteria JORC Code explanation Commentary
sample bias may have occurred due to
preferential loss/gain of fine/coarse
material.
• Holes CDH-026 through CDH-031 had problems with core
recovery in highly fractured, clay rich breccia zones.
• There is no adverse relationship between recovery and grade
identified to date.
Logging • Whether core and chip samples have
been geologically and geotechnically
logged to a level of detail to support
appropriate Mineral Resource
estimation, mining studies and
metallurgical studies.
• Whether logging is qualitative or
quantitative in nature. Core (or costean,
channel, etc) photography.
• The total length and percentage of the
relevant intersections logged.
• Core samples have been geologically and geotechnically logged
to a level of detail to support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
• Core logging is both qualitative or quantitative in nature. Photos
are taken of each box of core before samples are cut. Core is wetted to
improve visibility of features in the photos.
• All core has been logged and photographed.
Sub-sampling
techniques and
sample
preparation
• If core, whether cut or sawn and
whether quarter, half or all core taken.
• If non-core, whether riffled, tube
sampled, rotary split, etc and whether
sampled wet or dry.
• For all sample types, the nature, quality
and appropriateness of the sample
preparation technique.
• Quality control procedures adopted for
all sub-sampling stages to maximise
representivity of samples.
• Measures taken to ensure that the
sampling is representative of the in situ
material collected, including for instance
results for field duplicate/second-half
sampling.
• Whether sample sizes are appropriate
to the grain size of the material being
sampled.
• Core is sawn and half core is taken for sample.
• Samples are prepared using ALS Minerals Prep-31 crushing,
splitting and pulverizing. This is appropriate for the type of deposit being
explored.
• Visual review to assure that the cut core is ½ of the core is
performed to assure representativity of samples.
• field duplicate/second-half sampling is undertaken for 3% of all
samples to determine representativity of the sample media submitted.
• Sample sizes are appropriate to the grain size of the material
being sampled.
Quality of
assay data and
laboratory
tests
• The nature, quality and appropriateness
of the assaying and laboratory
procedures used and whether the
technique is considered partial or total.
• For geophysical tools, spectrometers,
handheld XRF instruments, etc, the
parameters used in determining the
analysis including instrument make and
model, reading times, calibrations
factors applied and their derivation, etc.
• Nature of quality control procedures
adopted (eg standards, blanks,
duplicates, external laboratory checks)
• Samples are assayed for gold using ALS Minerals Au-AA25
method a 30 g fire assay with an AA finish. This is considered a total assay
technique.
Samples are assayed for silver using ALS Minerals ME-ICP61 method.
Over limits are assayed by AgOG63 and AgGRAV21. These are considered a
total assay technique.
• Standards, blanks and duplicates are inserted appropriately into
the sample stream. External laboratory checks will be conducted
as sufficient samples are collected. Levels of accuracy (ie lack of
bias) and precision have not yet been established.
• Soil sampling is also subject to a program of standards and
blanks using the X-ray florescence (XRF) analyser. Results are
acceptable. Samples were analysed using three wavelengths