Mithril Silver and Gold Limited press release
Progress and District Exploration Expansion, Copalquin
TSXV - TSX Venture Exchange · Gold · Silver · Vanadium · Titanium · Australia
(TheNewswire)
| [](www.mithrilsilvergold.com) | | |
HIGHLIGHTS
Dec 9, 2024 – TheNewswire – Vancouver - Mithril Silver and Gold Limited (“Mithril” or “the Company”) (MTH:ASX, MSG:TSXV) provides an update for current drilling at the Target 1 area and the program for 2025 at its Copalquin Silver-Gold District project, Durango State, Mexico.
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The second stage of the 9,000 metre drill program recently commenced on the eastern side of the Target 1 resource area at El Cometa where recent drill hole CDH-159 intercepted 33m from surface at 31.8 g/t gold and 274 g/t silver (including 7m at 144 g/t gold and 1,162 g/t silver from 18m) 1
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~1,500 metres of core drilling have been completed since restarting in November after a scheduled break for drill maintenance and drill hole location update
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First two holes of this second stage of the campaign are at the laboratory, the next has left site, two more being logged and sampled and a sixth hole commencing, all on the eastern side of the Target 1 area at El Cometa where we are expanding the resource footprint
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The Target 1 area maiden resource 2 update is on schedule for end of Q1 2025
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The municipal access road upgrade is progressing well and on schedule for completion late March 2025 by which time drilling is scheduled to commence at the first of two further advanced target areas in the district
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The road upgrade and current site preparations will facilitate the significantly expanded and fully funded exploration activities ( A$12.5m placement 28 October 2024 ), which includes completion of ~40,000 metres additional drilling by the end of 2025
John Skeet, Mithril’s Managing Director and CEO commented:
“Drilling is progressing well at the Target 1 resource area, the first of several targets at our district scale high-grade Copalquin silver and gold project. With ~1,500 metres completed since the recent restart, we have now completed 6,300 metres of the expanded 9,000 metre Target 1 resource update drill program, announced late June 2024. The recent drill core logging supports the ‘big picture’ geologic model for the widespread silver and gold mineralisation across this 10 km wide district. Preparations are on track for the major expansion of exploration activities, which includes commencement of drilling at two further resource target areas during 2025 and development and testing of the district geologic model for this large epithermal silver-gold system. Upgrading of the Copalquin District municipal access road is progressing well, facilitating the expanded drilling activities for 2025 and beyond. With the significant treasury and established 70km 2 silver-gold project in Mexico’s prolific Sierra Madre Trend, Mithril is on track for exceptional progress and news flow throughout 2025.
COPALQUIN GOLD-SILVER DISTRICT, MEXICO
With 100 historic underground gold-silver mines and workings plus 198 surface workings/pits throughout 70km 2 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) 2 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 d eveloping 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 is scheduled to be updated by the end of Q1 2025. Channel sampling work, using a diamond rock saw, has continued at the Target 1 area and immediately to the south towards the Copalquin creek, as highlighted below in Figure 1 .
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[]()Figure []()1 LiDAR hill shade image with the historic workings identified across the district and 2020-2022 highlight drill and channel sample results. Target 1 area current drilling location, channel sampling area and the high priority drill target areas of Las Brujas-El Peru and La Constancia-El Jabali. Several new areas highlighted across the district for follow-up work
Figure 3 below, shows the location of the historic underground mine workings relative to the maiden resource block model at the Target 1 area. Drilling has been in progress in this area with a total of 9,000m to be completed prior to a resource update late Q1 2025, aiming to double the resource at Target 1.
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Figure []()3 Map showing the locations of the historic underground workings of El Cometa, La Soledad and El Refugio relative to the maiden resource block model of November 2021, (see About Copalquin section at end of this Announcement for maiden resource details)
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 commencing in October 2024.
ABOUT THE COPALQUIN GOLD SILVER PROJECT
The Copalquin mining district is located in Durango State, Mexico and covers an entire mining district of 70km 2 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+
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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*
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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 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.
^ 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).
[](https://www.thenewswire.com/data/tnw/clients/img/ff3e6d8df062279a0da53c00b001a45f.png) Click Image To View Full Size
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
jskeet@mithrilresources.com.au
+61 435 766 809 | Mark Flynn
Investor Relations
mflynn@mithrilresources.com.au
+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 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 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.
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.
JORC Code, 2012 Edition – Table 1
Section 1 Sampling Techniques and Data
| Criteria | JORC Code explanation | Commentary | | Sampling techniques | -
Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
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Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
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Aspects of the determination of mineralisation that are Material to the Public Report.
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In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. | -
Samples for the Copalquin, Mexico drill programs consist of ½ HQ core cut lengthwise with a diamond saw. Intervals are nominally 1 m but may vary between 1.5 m to 0.5 m based on geologic criteria.
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Deeper portions of holes from CDH-075 onward consist of ½ NQ core. Sample sizes are tracked by core diameter and sample weights.
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The same side of the core is always sent to sample (left side of saw).
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Reported intercepts are calculated as either potentially underground mineable (below 120m below surface) or as potentially open-pit mineable (near surface).
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Potentially underground mineable intercepts are calculated as length weighted averages of material greater than 1 g/t AuEQ_70 allowing up to 2m of internal dilution.
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Potentially open-pit mineable intercepts are calculated as length weighted averages of material greater than 0.25 g/t AuEQ_70 allowing for up to 2m of internal dilution.
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Rock chip sampling is done with hammer and chisel along continuous chip lines oriented perpendicular to the mineralized structure. The samples are as representative as possible. | | Drilling techniques | -
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). | -
Drilling is done with an MP500 man-portable core rig capable of drilling HQ size core to depths of 400 m. Core is recovered in a standard tube. Less than 7% of the total core drilled is NQ size core (as of 2022-01-15). | | Drill sample recovery | -
Method of recording and assessing core and chip sample recoveries and results assessed.
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Measures taken to maximise sample recovery and ensure representative nature of the samples.
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Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. | -
Drill recovery is measured based on measured length of core divided by length of drill run.
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Recovery in holes CDH-001 through CDH-025 and holes CDH-032 through CDH-077 was always above 90% in the mineralized zones. Detailed core recovery data are maintained in the project database.
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Holes CDH-026 through CDH-031 had problems with core recovery in highly fractured, clay rich breccia zones.
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There is no adverse relationship between recovery and grade identified to date. | | Logging | -
Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
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Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
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The total length and percentage of the relevant intersections logged. | • Core samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
• Core logging is both qualitative or quantitative in nature. Photos are taken of each box of core before samples are cut. Core is wetted to improve visibility of features in the photos.
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All core has been logged and photographed. | | Sub-sampling techniques and sample preparation | -
If core, whether cut or sawn and whether quarter, half or all core taken.
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If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
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For all sample types, the nature, quality and appropriateness of the sample preparation technique.
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Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
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Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
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Whether sample sizes are appropriate to the grain size of the material being sampled. | • Core is sawn and half core is taken for sample.
• Samples are prepared using ALS Minerals Prep-31 crushing, splitting and pulverizing. This is appropriate for the type of deposit being explored.
• Visual review to assure that the cut core is ½ of the core is performed to assure representativity of samples.
• field duplicate/second-half sampling is undertaken for 3% of all samples to determine representativity of the sample media submitted.
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Sample sizes are appropriate to the grain size of the material being sampled. | | Quality of assay data and laboratory tests | -
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
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For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
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Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. | • Samples are assayed for gold using ALS Minerals Au-AA25 method a 30 g fire assay with an AA finish. This is considered a total assay technique.