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
11 April 2025
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
Target 2: High-Grade Samples & Second Drill Starts
High-grade channel sample results and the second drill commenced drilling at the Target 2 area in
Mithril’s Copalquin silver and gold district property, Durango State, Mexico.
EXCEPTIONAL TARGET 2 CHANNEL SAMPLING HIGHLIGHTS INCLUDE:
La Brujas workings area: 1.00m @ 21.5 g/t gold, 337 g/t silver, (LB001)
1.00m @ 7.71 g/t gold, 170 g/t silver, (LB002)
3.00m @ 3.70 g/t gold, 67.1 g/t silver, (LB006)
2.00m @ 8.80 g/t gold, 74.2 g/t silver, (LB007)
2.00m @ 7.85 g/t gold, 128 g/t silver, (LB008)
1.00m @ 28.7 g/t gold, 356 g/t silver, (LB009)
1.00m @ 15.3 g/t gold, 127 g/t silver, (LB010)
1.00m @ 21.8 g/t gold, 156 g/t silver, (LB013)
1.00m @ 4.77 g/t gold, 94.1 g/t silver, (LB015)
El Peru workings area: 9.50m @ 5.66 g/t gold, 155 g/t silver, (MEP001)
2.00m @ 26.8 g/t gold, 1,004 g/t silver, (MEP002)
1.00m @ 31.8 g/t gold, 233 g/t silver, (MEP003)
• Today (Mexico time) , the second drill commenced drilling at the Target 2 area of El Peru/Las
Brujas as part of Mithril’s 2025, ‘district defining’ 35,000 metre drill programme, at Copalquin
• Drilling at Target 1 resource area successfully intercepted the El Refugio structure 120 metres
down dip on the eastern side, returning a high-grade result:
2.90m @ 9.06 g/t gold, 10.6 g/t silver, from 339.6 m (MTH-LS25-20), including
0.50m @ 44.7 g/t gold, 42.7 g/t silver, from 342m
• The first of a series of deep ( >500 metre) drill holes has been completed on the eastern side of
the Target 1 resource area, successfully intercepting the projected structure at depth. With the
successful ongoing drilling at the Target 1 area, the resource drilling cut-off has been extended
to late May 2025
Mithril Silver and Gold Limited (“Mithril” or “the Company”) (MTH:ASX, MSG:TSXV) announces
high-grade channel results for the Target 2 area at its Copalquin District project, Mexico.
John Skeet, Mithril’s Managing Director and CEO commented:
“The very high-grade channel sampling results and mapping work at the Copalquin District, Target 2 area enhances
the initial assessment of the high prospectivity of the next target area in the district. Drilling has commenced around
the two main historic workings of Las Brujas and El Peru before expanding into adjacent areas of significant historic
mining activity. Drilling at the Target 1 resource area, continues to intercept targeted structures from deep drilling
on the eastern side. We are currently drilling th e second of a series of +500m holes in this area , expanding the
resource update drill programme with anticipated cut -ff date late May 2025 . This may be further extended with
continued success intercepting projected structures defined by our geologic modelling.
www.mithrilsilvergold.com
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COPALQUIN GOLD-SILVER DISTRICT, DURANGO STATE, 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 mineral resource estimate (MRE) at the Target 1 area (El Refugio-La Soledad)1
and a NI 43-101 Technical Report filed on SEDAR+, 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.
Figure 1 LiDAR identified historic workings across the 70km2 district. Target 1 area current drilling location, channel sampling area and
the high priority drill target area s of Las Brujas-El Peru (Target 2) and La Constancia-El Jabali (Target 3). Several new areas highlighted
across the district for follow-up work.
1 See ‘About Copalquin Gold Silver Project’ section for JORC MRE details and AuEq. calculation.
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Channel Sample Results Discussion
Figure 2 Area (18km2) within 70km2 Copalquin District showing the current drill targets and channel ongoing channel sampling locations
Figure 3 Target 2 Area with channel sample locations and initial planned drill holes
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Figure 4 El Peru mine workings in the Target 2 area and channel sample locations
Figure 5 Las Brujas mine workings in the Target 2 area and channel sample locations
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Drill Results Discussion
Drilling at La Soledad, the north-westerly tending structure on the north-eastern side of the Target 1 resource
area, has returned excellent results.
• 2.90m @ 9.06 g/t gold, 10.6 g/t silver, from 339.6 m (MTH-LS25-20), including
o 0.50m @ 44.7 g/t gold, 42.7 g/t silver, from 342m,
MTH-LS25-20 was drilled 120 metres down dip of previous drilling in the area, producing a significant step out
result down dip on the eastern end of the main Refugio structure.
Drill holes MTH-LS25-18 and MTH-LS25-19 did not return reportable intercepts.
Figure 6
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)^ and a NI 43-101 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 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*
* In determining the g old equivalent (AuEq.) grade for reporting, a gold:silver price ratio of 70:1 was determined, using the formula: AuEq grade = Au grade +
((Ag grade/70) x (Ag recovery/Au recovery)). 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. At this early stage, the metallurgical recoveries were assumed to be equal. Subsequent preliminary metallurgical
test work produced recoveries of 91% for silver and 96% for gold (ASX Announcement 25 February 2022). In the Company’s opinion there is reasonable potential
for both gold and silver to be extracted and sold.
^ 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 relev ant 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 7 – Copalquin District location map, locations of mining and exploration activity and local infrastructure
-ENDS-
Released with the authority of the Board.
For further information contact:
John Skeet
Managing Director and CEO
+61 435 766 809
+1 672 962 7112
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 Australasi an 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 Commi ttee (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 Patrick Loury who is Mithril’s
Project Consultant. Mr Loury is a member of the American Institute of Professional Geologists and a Certified
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Page 8
Professional Geologist (CPG) . This is a Recognised Professional Organisation (RPO) under the Joint Ore
Reserves Committee (JORC) Code.
Mr Loury 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 (JO RC) Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves. Mr Loury 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. Mr Webster 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.
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.