Mithril Reports 10.9 G/T AuEq (7.19 G/T GOLD, 260 G/T Silver) over 8.03M, Extending Target 1 Area BY 300 Metres, at Copalquin, Mexico
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MITHRIL REPORTS 10.9 G/T AUEQ (7.19 G/T GOLD, 260 G/T SILVER) OVER
8.03M, EXTENDING TARGET 1 AREA BY 300 METRES, AT COPALQUIN, MEXICO
Melbourne, Australia and Vancouver, Canada – October 16, 2025 - Mithril Silver and Gold Limited
("Mithril” or the "Company") (TSXV: MSG) (ASX: MTH) (OTCQB: MTIRF) is pleased to provide exploration
results and update for multiple targets at Mithril’s district scale Copalquin property, Durango State,
Mexico.
Update Highlights
• The current Copalquin resource lies within the Target 1 area, where recent drilling has
successfully expanded the strike continuity by 300 metres, demonstrating strong potential for
further growth.
o 7.20 m @ 2.78 g/t gold, 148 g/t silver from 260.9 m (MTH-RE25-44), including
2.05 m @ 7.41 g/t gold, 419 g/t silver from 266.05 m
2.80 m @ 3.97 g/t gold, 208 g/t silver from 272.35 m
o 8.03 m @ 7.19 g/t gold, 260 g/t silver from 257.72 m (MTH-RE25-45), including
4.40 m @ 9.87 g/t gold, 507 g/t silver from 260.7 m
The above intercepts extend the Target 1 strike over 30%
• Target 5 drilling rapidly progressing with 11 drill holes now completed with assays pending for
the first batch of holes in the laboratory. Ongoing channel sampling at Target 5 has significantly
expanded the footprint of this target to 2 km x 2 km
• Target 3 drill plan advancing to be drill ready in the coming months with addition of a third drill
• District wide aerial magnetic survey commences later this mont h supporting district model
drilling, designed to locate the conduit for the widespread gold and silver mineralisation across
the vast Copalquin District
• The mineralised horizon is currently expanded to over 1,300 metres vertical across 9 km (Santa
Cruz to El Jarillal) in the southern half of the Copalquin district.
“Drilling at Target 1 continues to deliver strong results, confirming the western extension of the key
district-scale east–west structure and expanding the strike length of the Target 1 area by more than 30%,
with wide, high -grade intercepts throughout ”, commented John Skeet, Managing Director & CEO.
“Target 1 lies within the District Middle Section, which now extends over seven kilometres, linking
multiple high-grade historic mines and numerous prospective structural features to be tested as part of
Mithril’s fully funded 45,000-metre drill program.
At the large, silver-rich Target 5 area in the southern section, drilling has progressed rapidly with 11 holes
completed and first assays pending. In parallel, our geological team is advancing the district -scale
model, supported by an ongoing petrographic study and upcoming aerial magnetic survey, as we vector
in on the conduit system responsible for the widespread high-grade gold and silver mineralisation across
the Copalquin District. The defining hallmark of Copalquin remains its exceptional distribution of
bonanza-grade gold and silver mineralisation throughout this 70 km² property.”
See ‘About Copalquin Gold Silver Project’ section for JORC MRE details and AuEq. calculation.
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District Outlook
Mithril is fully funded to complete 45,000 metres of drilling over the next 12–14 months, with preparations
to add a third drill rig by early 2026 at Target 3 . Exploration , including drilling and detailed mapping,
continues to advance across multiple targets, underpinning the district-scale potential of Copalquin. A
closely spaced aerial magnetic survey will be flown late October 2025 and a petrographic fluid inclusion
study on samples across the district is supporting the ongoing development of the district scale model
for this large epithermal gold-silver system.
Target 1 resource expansion drilling is ongoing with a resource update pending upon completion of the
current drill program. Drilling throughout 2025 has refined geologic interpretation and presented
numerous target zones for drill testing.
Target 5 – Silver Rich in Southwest of Copalquin District – initial drilling continues around the Apomal
historic mine in the Target 5 area, with the first 11 holes completed (assays pending) for an initial 5,000
metre program. Apomal is being tested down dip, below the old mine workings and along strike in the
northwestern part of this large target area. This program marks the first drilling at Target 5 and is designed
to test the mapped veins while stepping out into untested areas along strike and at depth.
Previously completed mapping and sampling at Target 5 has recently returned excellent results from
surface and underground samples with the discovery of the historic La Lianas, Los Martires, Jarillal, and
Tasolera Mines within the Target 5 area, which covers 2 km x 2 km
Target 3 – Preparing for 2025 Drilling - ongoing systematic mapping and sampling at Target 3 are further
defining priority targets in this large prospective area, with maiden drilling set to commence in the coming
months.
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 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.
1 See ‘About Copalquin Gold Silver Project’ section for JORC MRE details and AuEq. calculation.
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Figure 1 – Copalquin District location map, locations of mining and exploration activity and local infrastructure.
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
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Copalquin District Exploration Progress Update
Figure 3 Property-wide channel sampling results for the middle and south district sections within ~50% of the 70 km2 mining concession
area covering the Copalquin District
Target 1 Drilling Discussion
Target 1 resource expansion drilling successfully extended the east-west structure 300 m west giving a
total strike length from of over 1,300 m (Table 1; Figure 4).
Table 1 Reported drill hole intervals
Drill Hole ID From
(m) To (m) Interval (m) Au g/t Ag g/t Au Eq g/t
MTH-ZG25-40 431.6 433.1 1.5 0.298 59.1 1.14
MTH-ZG25-40 450.7 453.55 2.85 1.12 25.20 1.47
MTH-RE25-41 137 138.35 1.35 1.255 71.9 2.28
MTH-RE25-41 140.8 143.9 3.1 0.63 31.10 1.07
MTH-RE25-41 180.82 181.6 0.78 0.71 33.90 1.2
MTH-RE25-41 378.5 379 0.5 3.21 1.20 3.23
MTH-ZG25-42 No reportable intercepts
MTH-RE25-43 No reportable intercepts
MTH-RE25-44 260.9 268.1 7.20 2.78 148 4.89
Including 266.05 268.1 2.05 7.41 418.8 13.39
MTH-RE25-44 272.35 275.15 2.80 3.97 209.4 6.97
MTH-RE25-45 257.72 265.75 8.03 7.19 259.7 10.9
Including 260.7 265.1 4.40 9.87 506.8 15.43
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Figure 4 Target 1 Drill results in this announcement and showing the 300 metre extension west
Figure 5 Cross section of holes MTH-RE25-44 and MTH-RE25-45 extending drilling 300 metres west at Target 1.
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Table 2 Drill hole collar details reported in this announcement
Hole ID Zone Easting Northing Elevation Azimuth Inclination Depth
MTH-ZG25-40 Zaragoza 289965 2823484 996.8 221 -53 474
MTH-RE25-41 Refugio 289079 2823785 1155.77 225 -48 411
MTH-ZG25-42 Zaragoza 290030 2823410 1000.27 212 -45 399
MTH-RE25-43 Refugio 289066 2824050 1178.85 208 -75 600
MTH-RE25-44 Refugio 288654 2823892 1177.09 200 -70 378
MTH-RE25-45 Refugio 288654 2823892 1177.09 215 -66 384
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 gold and silver districts.
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 a NI 43-101 Technical Report filed
on SEDAR+
• Indicated 691 kt @ 5.43 g/t gold, 114 g/t silver for 121,000 oz gold plus 2,538,000 oz silver
• Inferred 1,725 kt @ 4.55 g/t gold, 152 g/t silver for 252,000 oz gold plus 8,414,000 oz silver
(using a cut-off grade of 2.0 g/t AuEq*)
• 28.6% of the resource tonnage is classified as indicated
Table 33 Mineral resource estimate El Refugio – La Soledad using a cut-off grade of 2.0 g/t AuEq*
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
* In determining the gold equivalent (AuEq.) grade for reporting, a gold:silver price ratio of 70:1 was determined, using th e
formula: AuEq grade = Au grade + ((silver grade/70) x (silver 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 (93%). Subsequent preliminary metallurgical test work
produced recoveries of 91% for silver and 96% for gold (ASX Announcement 25 February 2022) and these will be used when the
resource is updated in the future. 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.
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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 (conceptual) 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. The average vein
width is approximately 4.5 metres.
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 2028.
-ENDS-
Released with the authority of the Board.
For further information contact:
John Skeet
Managing Director and CEO
+61 435 766 809
NIKLI COMMUNICATIONS
Corporate Communications
The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy
or adequacy of this release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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 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 Darren LeFort who
is Mithril’s Exploration Manager. Mr LeFort is a member of the Engineers and Geoscientists of British
Columbia and a Certified Professional Geologist (P.Geo). This is a Recognised Professional Organisation
(RPO) under the Joint Ore Reserves Committee (JORC) Code.
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Mr LeFort 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 LeFort 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, former Principal Geologist at AMC Consultants Pty Ltd (AMC), who is a Member of the
Australian Institute of Geoscientists. 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
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.
Samples are sent to ALS Gl obal with sample preparation performed in Chihuahua City, Mexico and
assaying of sample pulps performed in North Vancouver, BC, Canada.