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
23 January 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 1 EXPANSION ASSAYS UP TO 438 G/T SILVER, 7.88 G/T GOLD
Drilling of shallow mineralisation on the eastern side of the Target 1 resource area has successfully
intercepted excellent grades and widths as the Target 1 resource update drilling progresses.
HIGHLIGHTS
Highlight results for the drilling completed late 2024:
• 7.37m @ 4.16 g/t gold, 69.5 g/t silver, from 42m (MTH-EC24-01), including
o 4.00m @ 6.60 g/t gold, 48.9g/t silver, from 42m,
• 0.75m @ 2.53 g/t gold, 59.8 g/t silver, from 2.25m
• 13.90m @ 0.71 g/t gold, 34.6 g/t silver, from 1.50m (MTH-EC24-04), including
o 1.00m @ 4.15 g/t gold, 195 g/t silver from 12.0m
• 7.10m @ 1.87 g/t gold, 91.6 g/t silver from 163.9m, including
o 1.00m @ 7.88 g/t gold, 438 g/t silver from 170m
• 6.30m @ 1.08 g/t gold, 35.2 g/t silver, from 17.2m (CDH-167), including
o 0.80m @ 4.61 g/t gold, 109 g/t silver, from 17.2m
Drilling of the shallow mineralisation at El Cometa plus two further holes completed this month, completes
the drilling with solid results in this highly accessible part of the Target 1 resource area ahead of the resource
update.
• This month, two drill holes have been completed at La Soledad , with further drilling ongoing,
following up high-grade intercepts from Mithril’s 2020-21 drilling in this area , then moving to
Refugio West, ahead of the Target 1 resource update
• The addition of a second drill is on schedule with the municipal access road upgrade for
completion late March , allowing 35,000m of additional core drilling in the district throughout
2025, advancing the next two target areas and developing the large district geologic model
Mithril Silver and Gold Limited (“Mithril” or “the Company”) (MTH:ASX, MSG:TSXV) announces drill
results for the Target 1 resource expansion programme at its Copalquin District project, Mexico.
John Skeet, Mithril’s Managing Director and CEO commented:
“Drilling on the eastern side of the resource update area at El Cometa has returned excellent near surface intercepts
testing various structural orientations in this complex and highly prospective part of the Target 1 area. The El Cometa
area has produced exceptionally high-grade intercepts crosscutting the broader, well mineralised zone. Importantly,
these recent results support our interpretations in this area as part of the Target 1 resource update drilling. Drilling
recommenced early this month with the drill currently at La Soledad, commencing the fifth hole for 2025, following
up the high-grade mineralisation intercepted in 2020-21 within the Target 1 resource area. 2025 is a pivotal year for
the Copalquin District with our Target 1 resource update, fully funded exploration program (with 35,000m of drilling),
drilling at the next two exciting target areas , access road upgrade and expansive field work program, establish ing
Copalquin as the next of the many world-class gold-silver districts in Mexico’s prolific Sierra Madre Gold-Silver Trend”.
www.mithrilsilvergold.com
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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 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 drilling is scheduled to be
completed by end of Q1 2025. Channel sampling work, using a diamond rock saw, has continued adjacent to
the Target 1 area and immediately to the south towards the Copalquin creek, as highlighted below in Figure 1.
Drilling is planned to commence with the second drill rig at the Target 2 area by April 2025.
Figure 1 LiDAR hill shade image with the historic workings identified across the district and 2020 -2022 highlight channel sample results.
Target 1 area current drilling location, channel sampling area and the high priority drill target area s of Las Brujas -El Peru and La
Constancia-El Jabali. 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.
www.mithrilsilvergold.com
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Drill Results Discussion
Recent drilling successfully intercepted shallow mineralisation in the El Cometa area on the eastern side of the
Target 1 resource area with multiple intercepts, adding , to the data for the upcoming resource update. The
near surface (<100m down hole) cut -off for reporting the intercepts in the El Cometa area is lower (0.25 g/t
AuEq2 compared with 1.00 g/t AuEq2 for >100m down hole intercept reporting) reflecting its potential for lower
cost mining methods.
Two further drill holes have been completed in this area this month and the drill is currently on its third hole
at La Soledad , all within the Target 1 resource update area. Drilling within the Target 1 area is continuing
throughout the quarter, ahead of the Target 1 resource update.
El Cometa features a broad mineralised structure with cross cutting structures hosting very high -grade gold
and silver, such as reported from drill hole CDH-159 in 2024 ( 33.00m @31.8 g/t gold, 274 g/t silver from
surface)
Each of the drill holes returned reportable shallow intercept s. Drill hole MTH -EC24-04 intercepted further
deeper mineralisation at 160.3m down hole with 7.10m @ 1.87 g/t gold, 91.6 g/t silver, including 1.00m @
7.88 g/t gold, 438 g/t silver from 170m down hole. Drill intercepts are provided below.
• 7.37m @ 4.16 g/t gold, 69.5 g/t silver, from 42m (MTH-EC24-01), including
o 4.00m @ 6.60 g/t gold, 48.9g/t silver, from 42m,
• 0.75m @ 2.53 g/t gold, 59.8 g/t silver, from 2.25m
• 7.65m @ 0.23 g/t gold, 9.04 g/t silver, from 3.00m (MTH-EC24-02)
• 2.00m @ 0.63 g/t gold, 60.8 g/t silver, from 48.0m (MTH-EC24-03), including
o 0.50m @ 2.04 g/t gold, 197 g/t silver from 48.0m
• 5.00m @ 0.53 g/t gold, 29.4 g/t silver, from 84.0m
• 13.90m @ 0.71 g/t gold, 34.6 g/t silver, from 1.50m (MTH-EC24-04), including
o 1.00m @ 4.15 g/t gold, 195 g/t silver from 12.0m
• 7.10m @ 1.87 g/t gold, 91.6 g/t silver from 163.9m, including
o 1.00m @ 7.88 g/t gold, 438 g/t silver from 170m
• 0.80m @ 5.84 g/t gold, 233 g/t silver, from 109.3m (MTH-EC24-05)
• 2.00m @ 0.02 g/t gold, 75.2 g/t silver, from 11.0m (CDH-167),
• 6.30m @ 1.08 g/t gold, 35.2 g/t silver, from 17.2m, including
o 0.80m @ 4.61 g/t gold, 109 g/t silver, from 17.2m
Two further drill holes have been completed in the El Cometa area with drilling now in progress at the La
Soledad area. Further Target 1 resource drilling is scheduled for Refugio West. Drill samples to-date are
scheduled for shipment this week, and this will be ongoing throughout the year increasing with the addition
of a second drill.
2 See ‘About Copalquin Gold Silver Project’ section for JORC MRE details and AuEq. calculation.
www.mithrilsilvergold.com
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Figure 2 Central area (6 km2) of the 70km2 district mining concession area showing the locations of the recent and current drilling activity.
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*
www.mithrilsilvergold.com
Page 5
* The gold equivalent (AuEq.) values are determined from gold and silver values and assume the following: AuEq. = gold equi valent 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 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.
Formula for AuEq. = Au grade +((Ag grade/gold:silver price ratio) x (Ag recovery/Au recovery))
^ 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).
Figure 3 – 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
www.mithrilsilvergold.com
Page 6
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 Reco gnised 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 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. 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.
www.mithrilsilvergold.com
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Table 2 Mineralised intercepts in reported drillholes above 0.1 g/t AuEq.
HOLE_ID Sample_ID From m To m Length m Final_Au
_ppm
Final_Ag
_ppm AuEq_70 AgEq_70
CDH-167 706001 0 1.5 1.5 0.047 5.2 0.12 8.49
CDH-167 706002 1.5 3 1.5 0.091 4.7 0.16 11.07
CDH-167 706003 3 4.5 1.5 0.14 7 0.24 16.8
CDH-167 706004 4.5 6 1.5 0.078 10.1 0.22 15.56
CDH-167 706005 6 7 1 0.059 13.2 0.25 17.33
CDH-167 706006 7 8 1 0.382 6.4 0.47 33.14
CDH-167 706007 8 9 1 0.043 6.1 0.13 9.11
CDH-167 706010 11 12 1 0.014 21.3 0.32 22.28
CDH-167 706011 12 13 1 0.035 129 1.88 131.45
CDH-167 706014 15 15.6 0.6 0.117 5.9 0.20 14.09
CDH-167 706018 17.2 18 0.8 4.61 109 6.17 431.7
CDH-167 706019 18 19 1 0.196 20.2 0.48 33.92
CDH-167 706020 19 20 1 0.871 26.7 1.25 87.67
CDH-167 706021 20 21 1 0.239 11.2 0.40 27.93
CDH-167 706022 21 22 1 0.088 9.7 0.23 15.86
CDH-167 706023 22 23 1 1.515 39.4 2.08 145.45
CDH-167 706024 23 23.5 0.5 0.407 55 1.19 83.49
CDH-167 706026 23.5 24 0.5 0.094 4.4 0.16 10.98
CDH-167 706027 24 25 1 0.173 5.4 0.25 17.51
CDH-167 706118 266 266.65 0.65 0.321 5.2 0.40 27.67
CDH-167 706153 302 303 1 0.046 4.2 0.11 7.42
CDH-167 706171 321 322 1 0.064 6.8 0.16 11.28
MTH-EC24-01 706178 0 1.5 1.5 0.07 5.5 0.15 10.4
MTH-EC24-01 706179 1.5 2.25 0.75 0.072 4 0.13 9.04
MTH-EC24-01 706180 2.25 3 0.75 2.53 59.8 3.38 236.9
MTH-EC24-01 706188 10 11 1 0.07 3.8 0.12 8.7
MTH-EC24-01 706219 39 40 1 0.047 4.1 0.11 7.39
MTH-EC24-01 706222 42 43 1 8.69 49.6 9.40 657.9
MTH-EC24-01 706223 43 44 1 2.42 31.2 2.87 200.6
MTH-EC24-01 706224 44 45 1 1.7 29.9 2.13 148.9
MTH-EC24-01 706226 45 46 1 13.6 84.7 14.81 1036.7
MTH-EC24-01 706227 46 47 1 0.746 63.4 1.65 115.62
MTH-EC24-01 706228 47 48 1 2.01 170 4.44 310.7
MTH-EC24-01 706229 48 48.69 0.69 1.175 64.6 2.10 146.85
MTH-EC24-01 706230 48.69 49.37 0.68 1.005 57.2 1.82 127.55
MTH-EC24-01 706231 49.37 50 0.63 0.079 2.9 0.12 8.43
MTH-EC24-01 706242 59 60 1 0.035 4.6 0.10 7.05
MTH-EC24-01 706249 70 71 1 0.143 1.3 0.16 11.31
MTH-EC24-01 706252 72 73 1 0.119 3.7 0.17 12.03
MTH-EC24-01 706255 92 93 1 0.056 6.1 0.14 10.02
MTH-EC24-01 706257 94 95 1 0.167 2.6 0.20 14.29
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MTH-EC24-01 706258 95 96 1 0.097 1.8 0.12 8.59
MTH-EC24-01 706259 96 97 1 0.166 2.5 0.20 14.12
MTH-EC24-01 706263 109.3 110 0.7 0.086 2.2 0.12 8.22
MTH-EC24-01 706264 110 111 1 0.1 1.3 0.12 8.3
MTH-EC24-01 706265 111 112 1 0.234 1.4 0.25 17.78
MTH-EC24-01 706266 112 113 1 0.228 4.1 0.29 20.06
MTH-EC24-01 706267 113 114 1 0.14 2.6 0.18 12.4
MTH-EC24-01 706268 114 115 1 0.094 1.2 0.11 7.78
MTH-EC24-01 706270 116 117 1 0.218 1.3 0.24 16.56
MTH-EC24-01 706271 117 118 1 0.255 1.1 0.27 18.95
MTH-EC24-01 706272 118 118.8 0.8 0.147 1.3 0.17 11.59
MTH-EC24-01 706273 119.47 120 0.53 0.135 0.6 0.14 10.05
MTH-EC24-01 706274 120 121 1 0.101 0.5 0.11 7.57
MTH-EC24-01 706276 121 122 1 0.115 0.9 0.13 8.95
MTH-EC24-01 706279 124 125 1 0.099 2.8 0.14 9.73
MTH-EC24-01 706287 131 132 1 0.197 0.9 0.21 14.69
MTH-EC24-01 706289 133 134 1 0.08 1.4 0.10 7
MTH-EC24-01 706291 135 136 1 0.083 2.5 0.12 8.31
MTH-EC24-01 706292 136 137 1 0.202 8 0.32 22.14
MTH-EC24-01 706293 137 138 1 0.101 11.5 0.27 18.57
MTH-EC24-01 706294 138 139 1 0.079 8.6 0.20 14.13
MTH-EC24-01 706295 139 140 1 0.077 5.1 0.15 10.49
MTH-EC24-01 706296 140 141 1 0.187 22.9 0.51 35.99
MTH-EC24-01 706297 141 142 1 0.228 6.1 0.32 22.06
MTH-EC24-01 706298 142 143 1 0.132 4.8 0.20 14.04
MTH-EC24-01 706299 143 144 1 0.148 5.2 0.22 15.56
MTH-EC24-01 706301 144 145 1 0.133 5.4 0.21 14.71
MTH-EC24-01 706302 145 146 1 0.17 3.2 0.22 15.1
MTH-EC24-01 706303 146 146.6 0.6 0.169 1.9 0.20 13.73
MTH-EC24-01 706305 147.4 148 0.6 0.084 1.7 0.11 7.58
MTH-EC24-01 706306 148 149 1 0.091 2 0.12 8.37
MTH-EC24-01 706307 149 150 1 0.109 1.7 0.13 9.33
MTH-EC24-01 706308 150 151 1 0.099 2.4 0.13 9.33
MTH-EC24-01 706309 151 152 1 0.113 2.7 0.15 10.61
MTH-EC24-01 706310 152 153 1 0.104 4.6 0.17 11.88
MTH-EC24-01 706311 153 154 1 0.108 8.2 0.23 15.76
MTH-EC24-01 706313 163 164 1 0.135 8.4 0.26 17.85
MTH-EC24-01 706322 171 172 1 0.079 6 0.16 11.53
MTH-EC24-01 706323 172 173 1 0.087 6.3 0.18 12.39
MTH-EC24-01 706324 173 174 1 0.059 4.9 0.13 9.03
MTH-EC24-01 706326 174 175 1 0.089 3.4 0.14 9.63
MTH-EC24-01 706327 175 176 1 0.184 53 0.94 65.88
MTH-EC24-01 706335 201.15 202 0.85 0.057 10.2 0.20 14.19
MTH-EC24-01 706336 202 203 1 0.57 9.6 0.71 49.5
MTH-EC24-01 706337 203 204 1 0.165 2.1 0.20 13.65
MTH-EC24-01 706338 204 205 1 0.117 1.2 0.13 9.39