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
18 October 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
ASSAYS UP TO 997 G/T SILVER, 28 G/T GOLD TARGET 1 EXPANSION
HIGHLIGHTS
Mithril Silver and Gold Limited (“Mithril” or “the Company”) (MTH:ASX) announces further drill
results for the Target 1 resource expansion programme at its Copalquin District project, Mexico.
• 4.60 m @ 5.51 g/t gold, 182.4 g/t silver, from 99m (CDH-162), including
o 2.40m @ 10.24 g/t gold, 335 g/t silver, from 100.40m, Including
0.60m @ 28.0 g/t gold, 997 g/t silver, from 100.40m
CDH-162 was part of the first drilling into an area shallower than the maiden resource model, at the historic
El Refugio mine workings on the western side of the Target 1 resource area.
• 9.00m @ 2.06 g/t gold, 90.26 g/t silver, from 98m (CDH-161)
o Including 1.00m @ 2.14 g/t gold, 259 g/t silver from 99m plus
• 1.60m @ 5.09 g/t gold, 299 g/t silver from 125.60m including
o 0.50m @ 12.15 g/t gold, 758 g/t silver from 126.7m
CDH-161 was drilled at El Cometa on the eastern side of the Target 1 resource area, again adding to the
expanded resource footprint. The recent 33.00m @31.8 g/t gold, 274 g/t silver from surface (CDH-159) was
drilled into a shallower and parallel structure 100 metres west of CDH-161 (see Figure 2). Further drilling will
be completed in this area ahead of the scheduled Target 1 resource update Q1 2025.
John Skeet, Mithril’s Managing Director and CEO commented:
“Drilling into untested areas in and around the Target 1 maiden resource area continues to successfully expand the footprint
with high to exceptionally high grade results, as we progress our aim to double the resource at this first of multiple targets
in the district with a further 5,000m of drilling to complete over the coming months. Ongoing LiDAR survey interpretation,
together with mapping and drill/channel sample results, further demonstrate a very large epithermal gold-silver system
with significant depth potential across this 10 km wide district. There are at least three further Target 1 size areas for future
drilling plus several areas identified for field work. Our Copalquin District property is advancing to become the next of the
many world-class gold-silver districts in Mexico’s prolific Sierra Madre Gold-Silver 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.
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Drillhole Discussion
A total of 4,881.50 metres have been drilled since June 2024, testing Soledad, Cometa and Refugio to better define
dimensions along strike and depth of the mineral evidence that already has shown exceptional silver and gold
potential and multi-event quartz deposition. Additionally, the first drill holes at the historic Copalquin mine, 300m
lower elevation and 900m SE of the Target 1 area, has provided evidence of an epithermal, multi-phase banded
quartz vein, interpreted to be part of the conduit system responsible for the widespread gold-silver mineralization
throughout the district and supporting our model of a large and long lived epithermal gold-silver system.
CDH-161 intersected 9.00m @ 2.06 g/t gold, 90.26 g/t silver, from 98m, including
1.00m @ 2.14 g/t gold, 259 g/t silver from 99m plus
1.60m @ 5.09 g/t gold, 299 g/t silver from 125.60m including
0.50m @ 12.15 g/t gold, 758 g/t silver from 126.7m
In order to establish the vertical and horizontal continuity of Cometa Zone (Refugio E-W Structure and
crosscutting of NW structures) drill testing at depth and along strike of both CDH-159 (33.00m @31.8 g/t gold, 274
g/t silver from surface) and CDH-161 is planned over the coming months.
After completion of detailed mapping and sampling in the underground workings at El Cometa, we can now say
that Fault/Breccias and Fault/Veins along drift are occurring both as high and low angle structures. There is a
dominant 220-250 degree oriented, 50-70 degree angle SE structure offset by a NW structure that has been
developed with channel sample assays pending. Drilling is the follow in this area.
CDH-162 intersected 4.60 m @ 5.51 g/t gold, 182.43 g/t silver, from 99m, including
2.40m @ 10.24 gold g/t gold, 335.03 g/t silver, from 100.40m, plus including
0.60m @ 28 gold g/t gold, 997 g/t silver, from 100.40m
CDH-164 intersected 6.80 m @ 0.70 g/t Au, 36.98 g/t silver, from 87.20m, Including
4m @ 0.93 gold g/t gold, 45.83 g/t silver, from 88m, plus Including
0.60m @ 28 gold g/t gold, 997 g/t silver, from 100.40m
CDH-162, CDH-163 and CDH-164 were drilled in Refugio historic workings shallower than the maiden resource. A
wide quartz breccia zone was intercept along a hydrothermal breccia in all holes. CDH-162 hit Refugio Structure
4.60m @ 5.51 g/t Au, 182.43 g/t Ag, from 99m. CDH-163 hit the El Refugio historic workings from 86.60m to 88.30m
returning with anomalous intercepts of 2.70m @ 0.28 g/t Au, 19.28 g/t Ag from 88.30m, CDH-164 also hit a breccia
zone intercepting 6.80m @ 0.70 g/t Au, 36.98 g/t Ag from 87.20m, including 4m @ 0.93 g/t Au, 45.83 g/t Ag, from
88.00 m
CDH-165 and CDH-166 both holes were drilled on the western margin to provide geological information to support
the development of the geological model. No reportable intercepts from these exploration holes.
Drilling is scheduled to recommence for the second half of the 9,000m program, late this month.
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Figure 1 Cross-section at the historic El Refugio mine workings where the first drilling has been recently completed (CDH-162 to 164).
Figure 2 Plan view of drilling at El Cometa in the eastern side of the Target 1 resource area showing the recent drill intercepts into two separate
and parallel structures 100m apart. Further drilling is planned to establish the continuity the mineralisation in this area.
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Figure 3 Central area around the Target 1 Maiden JORC resource area, where all the drilling to date has been completed.
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.
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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
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 gold and silve r 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).
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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
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.
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.
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Page 7
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.
Figure 5 LiDAR hill shade image with the historic workings identified across the district and 2020-2022 highlight drill and
channel sample results. Several new areas highlighted across the district for follow-up work.
ASX ANNOUNCEMENT
18 October 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
Table 2 Mineralised intercepts in reported drillholes above 0.1 g/t AuEq.
HOLE_ID Sample_ID From m To m Length m Au_ppm Ag_ppm AuEQ_70 AgEQ_70
CDH-161 229287 19.80 20.40 0.60 0.217 7.7 0.33 22.89
CDH-161 229288 20.40 21.00 0.60 0.473 22.8 0.80 55.91
CDH-161 229289 21.00 22.00 1.00 0.39 14.4 0.60 41.7
CDH-161 229290 22.00 23.00 1.00 0.144 6.8 0.24 16.88
CDH-161 229295 27.00 27.5 0.5 0.221 4.8 0.29 20.27
CDH-161 229327 97.00 98.00 1.00 0.117 2.5 0.15 10.69
CDH-161 229328 98.00 99.00 1.00 0.307 10.1 0.45 31.59
CDH-161 229329 99.00 99.60 0.60 10.75 206 13.69 958.5
CDH-161 229330 99.60 100.35 0.75 1.82 53.4 2.58 180.8
CDH-161 229331 100.35 100.95 0.60 2.83 61.9 3.71 260
CDH-161 229332 100.95 101.70 0.75 2.06 41.1 2.65 185.3
CDH-161 229333 101.70 102.40 0.70 0.699 15.4 0.92 64.33
CDH-161 229334 102.40 103.00 0.60 0.822 46.4 1.48 103.94
CDH-161 229335 103.00 104.00 1.00 1.75 112 3.35 234.5
CDH-161 229336 104.00 105.00 1.00 1.53 83.5 2.72 190.6
CDH-161 229337 105.00 106.00 1.00 0.738 77.5 1.85 129.16
CDH-161 229338 106.00 107.00 1.00 2.14 259 5.84 408.8
CDH-161 229340 107.65 108.35 0.70 0.113 10.2 0.26 18.11
CDH-161 229341 108.35 109.05 0.70 0.122 13.6 0.32 22.14
CDH-161 229342 109.05 109.75 0.70 0.197 19.2 0.47 32.99
CDH-161 229343 109.75 110.25 0.50 0.446 47.3 1.12 78.52
CDH-161 229344 110.25 111.00 0.75 0.48 52.4 1.23 86
CDH-161 229345 111.00 112.00 1.00 0.118 10.9 0.27 19.16
CDH-161 229346 112.00 112.70 0.70 0.729 34.8 1.23 85.83
CDH-161 229358 125.60 126.70 1.10 1.885 90.8 3.18 222.75
CDH-161 229359 126.70 127.20 0.50 12.15 758 22.98 1608.5
CDH-161 229363 129.40 130.00 0.60 0.283 2.4 0.32 22.21
CDH-161 229387 204.10 205.20 1.10 0.748 3.6 0.80 55.96
CDH-161 229388 205.20 206.20 1.00 0.342 7.1 0.44 31.04
CDH-161 229389 206.20 206.70 0.50 0.293 25.7 0.66 46.21
CDH-161 229391 206.70 207.20 0.50 0.163 15.9 0.39 27.31
CDH-161 229392 207.20 208.20 1.00 0.473 40.3 1.05 73.41
CDH-161 229393 208.20 209.20 1.00 0.69 62.1 1.58 110.4
CDH-161 229395 210.25 211.25 1.00 0.249 16.2 0.48 33.63
CDH-161 229396 211.25 211.95 0.70 0.296 18.9 0.57 39.62
CDH-161 229397 211.95 213.00 1.05 0.145 6.7 0.24 16.85
CDH-161 229398 213.00 214.10 1.10 0.222 32.6 0.69 48.14
CDH-161 229399 214.10 215.10 1.00 0.322 29 0.74 51.54