Mithril Drills High-Grade GOLD-Silver at Target 1 and Further Expands the District Scale, Copalquin, Mexico
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MITHRIL DRILLS HIGH-GRADE GOLD-SILVER AT TARGET 1 AND FURTHER
EXPANDS THE DISTRICT SCALE, COPALQUIN, MEXICO
Melbourne, Australia and Vancouver, Canada – January 20, 202 6 - Mithril Silver and Gold Limited
("Mithril” or the "Company") (TSXV: MSG) (ASX: MTH) (OTCQB: MTIRF) is pleased to provide exploration
success at Mithril’s district scale Copalquin property, Durango State, Mexico.
• High-grade in shallow intercepts returned from expansive resource drilling at Target 1 ahead
of the Target 1 mineral resource estimation (MRE) update
• Target 1 drilling highlights include:
o 1.55 m @ 2.11 g/t gold, 5.5 g/t silver from 24.65 m (MTH-RE25-54), plus
1.35 m @ 21.9 g/t gold, 357 g/t silver from 142.75 m, including
0.50 m @ 57.7 g/t gold, 924 g/t silver from 143.6 m
o 3.05 m @ 1.68 g/t gold, 107 g/t silver from 52.0 m (MTH-LS25-53), including
0.50 m @ 9.60 g/t gold, 612 g/t silver from 52.0 m, plus
2.80 m @ 2.29 g/t gold, 60.3 g/t silver from 65.25 m, including
0.50 m @ 10.6 g/t gold, 298 g/t silver from 67.55 m, plus
4.40 m @ 2.18 g/t gold, 14.6 g/t silver from 77.2 m
0.50 m @ 15.5 g/t gold, 66.1 g/t silver from 81.1 m
• Drilling on the western side of Target 1 (150 metre anomalous silver zone intercept in MTH -
RE25-58) extends the District east-west mineralised structure 300 metres west plus extensive
hydrothermal alteration. This large alteration zone indicates significant hydrothermal fluid flow
which possibly represents a major feeder zone in this part of the District. This is further supported
by our recent petrographic work (see discussion below). The east-west structure likely extends a
further 600 metres west to the El Gallo workings where high-grade gold and silver was intercepted
in previous drilling (see ASX announcement date 5 May 2022)1 providing significant scale upside.
• 300 metre down dip extension of the Refugio 1 structure , also on the western side of Target 1
(MTH-RE25-47 and 56), are the deepest intercepts in this area to date which (with the intercept
in MTH-RE25-058) provide vectors for continued expansion of the Copalquin District model.
“The recent drilling at Target 1 has successfully expanded the resource potential for the upcoming Target
1 MRE update and provided important success in the development of the larger District scale model”, said
John Skeet, Managing Director & CEO.
“The drilling on the western side of Target 1 intersected a broad anomalous silver zone with pervasive
hydrothermal alteration associated with the district -scale east –west structure. In low -sulphidation
systems, this style of alteration and silver enrichment is indicative of a well -developed hydrothermal
conduit or feeder zone and supports further potential for mineralisation along strike and at depth as well
as the District bigger picture.
The 300-metre down-dip extension of the Refugio 1 structure confirms vertical continuity of the system
and provides clear scope to expand the Target 1 resource beyond the current model.”
1 ASX announcement EXPLORATION CONTINUES TO EXPAND, COPALQUIN DISTRICT, MEXICO, 5 May 2022
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Copalquin District - 2026
Mithril is undertaking an aggressive exploration program in 2026, with 25,000 metres of drilling planned
during the first half of the year across the Copalquin District. Upcoming work will focus on expanding
known mineralized zones, testing new high -priority targets, integratin g district-wide geophysical data,
and continuing to advance the Company’s district-scale exploration thesis. The district features over 100
historic underground workings including several notable producing multi -level mines and 200 s urface
workings. Mapping and sampling across the lower half of the 70 km 2 mining concession area
demonstrates and a large epithermal silver-gold system with multiple target areas for potential resource
growth plus the conduit system responsible for the widespread silver and gold mineralisation.
The nearby 20 km 2 La Dura property has recently been added to the portfolio providing where a LiDAR
survey has been flown (interpretation anticipated in February 2026) and will undergo and aerial magnetic
survey upon completion of the aerial magnetic survey at Copalquin commencing in January 2026.
Figure 1 Mithril’s Copalquin and La Dura property locations in Durango State, Mexico
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Figure 2 LiDAR identified historic workings across the 70km2 district. Current drilling locations at Target 1 west and Target 5 (El Apomal),
and recent drilling at Zaragoza mine in Target 1 south, high priority drill target area of La Constancia-El Jabali (Target 3). Several new areas
highlighted across the district for follow-up work including recently sampled Target 6
Target 1 Drilling Discussion
Drilling continued throughout 2025 at the Target 1 area aiming to expand the maiden resource. The
results throughout the year and reported in this announcement have continued to successfully expand
the footprint and fill in areas with the objective to bring more tonnes into classification for a mineral
resource estimate (MRE) update. Approximately 3,000 metres of drilling is to be completed in Q1 2026
to finalise the drilling for the MRE update. 3D modelling of the updated geology including the post mineral
intrusive unit has created a robust and predictable model for the upcoming MRE.
Recently received drill results have intersected very high -grade gold and silver and provided supportive
geological control data for the Target 1 model.
Assay highlights include
o 1.55 m @ 2.11 g/t gold, 5.5 g/t silver from 24.65 m (MTH-RE25-54), plus
1.35 m @ 21.9 g/t gold, 357 g/t silver from 142.75 m, including
0.50 m @ 57.7 g/t gold, 924 g/t silver from 143.6 m
o 3.05 m @ 1.68 g/t gold, 107 g/t silver from 52.0 m (MTH-LS25-53), including
0.50 m @ 9.60 g/t gold, 612 g/t silver from 52.0 m, plus
2.80 m @ 2.29 g/t gold, 60.3 g/t silver from 65.25 m, including
0.50 m @ 10.6 g/t gold, 298 g/t silver from 67.55 m, plus
4.40 m @ 2.18 g/t gold, 14.6 g/t silver from 77.2 m
0.50 m @ 15.5 g/t gold, 66.1 g/t silver from 81.1 m
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Table 1 Interval for results received for Target 1 drilling reported.
Hole ID From (m) To (m) Interval (m) Au g/t Ag g/t AuEq g/t
MTH-RE25-46 59.5 61.2 1.7 0.59 11.1 0.75
MTH-RE25-46 65.25 69.2 3.95 1.37 22.2 1.69
MTH-RE25-47 442.3 444.65 2.35 1.18 24.2 1.52
MTH-LS25-52 72.7 73.2 0.5 1.11 4.4 1.17
MTH-LS25-52 264.5 266 1.5 0.39 63.6 1.30
MTH-LS25-53 44.7 45.2 0.5 2.64 42.3 3.24
MTH-LS25-53 52 55.05 3.05 1.68 107 3.20
including 52 52.5 0.5 9.60 612 18.34
MTH-LS25-53 65.25 68.05 2.80 2.29 60.3 3.15
including 67.55 68.05 0.5 10.55 298 14.81
MTH-LS25-53 77.2 81.6 4.40 2.18 14.6 2.39
including 81.1 81.6 0.5 15.50 66.1 16.44
MTH-LS25-53 91.7 93 1.3 0.44 0.7 0.45
MTH-LS25-53 226 226.5 0.5 1.07 2.7 1.11
MTH-RE25-54 5.50 8.30 2.80 0.27 19.7 0.56
MTH-RE25-54 12 12.65 0.65 0.60 19.1 0.87
MTH-RE25-54 18.85 20 1.15 0.31 11.0 0.47
MTH-RE25-54 24.65 26.20 1.55 2.11 5.50 2.19
MTH-RE25-54 28.70 29.60 0.90 0.524 23.1 0.85
MTH-RE25-54 32.25 34.85 2.60 0.30 2.40 0.33
MTH-RE25-54 133.7 135 1.30 0.72 54.7 1.50
MTH-RE25-54 142.75 144.1 1.35 21.94 357 27.04
including 143.6 144.1 0.50 57.65 924 70.85
MTH-RE25-55 No reportable intercepts
MTH-RE25-56 441.75 447.2 5.45 0.78 35.9 1.29
including 441.75 442.7 0.95 1.08 39.5 1.64
including 444.7 447.2 2.50 1.26 62.1 2.15
MTH-RE25-57 189.15 189.65 0.50 1.43 128 3.25
MTH-RE25-58 165.85 166.35 0.50 1.09 82.2 2.26
MTH-RE25-59 No reportable intercepts
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Figure 3 Plan map for the Target 1 drilling reported and section lines for the following cross sections
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Figure 4 Section C - high-grade intercepts on the eastern side of the Target 1 resource successfully
in-filling an area with previously insufficient data in this relatively shallow area.
Figure 5 Section D with multiple intercepts including those highlighted on the above section.
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Figure 6 Section E successfully intercepting the Refugio 1 structure on the eastern side over 300 metres down dip
Further Evidence of the Large Hydrothermal System
Drilling on the western end of the resource area at Target 1 has continued to provide further evidence of
continuation of the east-west mineralised structure plus extensive hydrothermal alteration.
In a low sulphidation epithermal deposit, the presence of a wide alteration halo combined with silver-rich
mineralization is a strong indicator of a robust, long -lived hydrothermal system and has important
implications for both scale and exploration potential.
A broad alteration halo reflects extensive circulation of neutral to weakly alkaline hydrothermal fluids
through permeable structures and surrounding wall rocks. Alteration assemblages commonly include
quartz, adularia, sericite, with variable carbonate, chlorite and locally developed clay alteration. The
breadth of alteration indicates that fluid flow was not restricted to narrow vein conduits, but instead
affected a large volume of rock, increasing the likelihood of multiple mineralized structures, stacked
veins, or locally disseminated mineralization. From an exploration standpoint, wide alteration halos
provide large, mappable footprints that can be detected through mapping, geochemistry, and remote
sensing, allowing effective vectoring toward higher grade zones.
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Figure 7 Drill hole MTH-RE25-58 intercepted a thick anonymously silver rich alteration halo on the western side of Target 1
Silver mineralization is a characteristic feature of low sulphidation epithermal systems and commonly
occurs as electrum, acanthite, native silver, silver sulfosalts, or Ag-bearing base metal sulphides.
Elevated silver grades often reflect boiling, fluid mixing, or rapid pressure changes within the epithermal
environment, processes that are also efficient at precipitating gold. Silver rich zones may be laterally or
vertically offset from gold dominant zones, commonly occupying higher or more distal portions of the
system, and therefore provide valuable vectors toward potentially gold rich feeder structures at depth
or along strike.
Together, a wide alteration halo and significant silver mineralization suggest a well-developed
epithermal system with favourable permeability architecture and strong hydrothermal flux. This
combination increases the probability of discovering additional veins, higher grade shoots, or vertically
zoned precious metal mineralization, and supports the potential for a district scale mineralized system
rather than isolated, narrow veins.