Mithril’s Copalquin Drilling Boosts Resource Prospects Amid Key Infrastructure Upgrades

Robust Drill Results Bolster Target 1 Expansion

Mithril Silver and Gold Limited (ASX: MTH) has delivered a series of encouraging drilling results from its Target 1 resource expansion program at the Copalquin Gold-Silver District in Durango, Mexico. The latest assays reveal impressive grades, including a standout intercept of 7.88 grams per tonne (g/t) gold and 438 g/t silver, underscoring the district’s rich mineral potential.

Drilling focused on the eastern flank of the Target 1 resource area, particularly at the El Cometa zone, has intercepted multiple shallow mineralised zones. These include broad intervals such as 7.37m at 4.16 g/t gold and 69.5 g/t silver from 42m depth, and deeper high-grade shoots exemplified by 1m at 7.88 g/t gold and 438 g/t silver from 170m. These results not only confirm the continuity of mineralisation but also highlight the complex structural controls that host high-grade veins within the broader mineralised envelope.

Advancing Towards a Resource Update and District Growth

The drilling campaign is progressing steadily with two rigs now operational, supported by a municipal road upgrade expected to be completed by late March 2025. This infrastructure enhancement will facilitate an ambitious 35,000m drilling program across the district this year, targeting resource expansion and new discoveries.

Alongside El Cometa, drilling has commenced at La Soledad, following up on high-grade intercepts from earlier campaigns in 2020-21. Plans are also underway to extend drilling to Refugio West, another promising target within the district. These efforts aim to underpin the upcoming Target 1 resource update scheduled for the end of Q1 2025, which is anticipated to incorporate the latest drilling data and potentially increase the resource base.

Copalquin District: A Growing Gold-Silver Province

Copalquin is a substantial 70 km² mining district with a rich history of gold and silver production, hosting over 100 historic underground mines and numerous surface workings. Mithril’s maiden JORC resource estimate, released in 2021, reported 2.4 million tonnes grading 4.8 g/t gold and 141 g/t silver, equating to 529,000 ounces of gold equivalent. The current drilling results reinforce the district’s potential to evolve into a significant gold-silver mining hub within Mexico’s prolific Sierra Madre Gold-Silver Trend.

Metallurgical test work supports the feasibility of conventional underground mining methods with high recovery rates for both gold and silver. Mithril holds an exclusive option to acquire 100% ownership of the Copalquin concessions, with payment terms extended to August 2028, providing ample runway to advance exploration and development.

Strategic Outlook and Market Implications

CEO John Skeet emphasised the pivotal nature of 2025 for Mithril, highlighting the scale of the drilling program and the district-wide geological model development. The combination of high-grade intercepts, expanding resource footprints, and infrastructure improvements positions Mithril to unlock substantial value in the Copalquin District.

Investors will be watching closely as the resource update approaches, with the potential for a material increase in resource ounces and grade. The ongoing exploration success also raises the prospect of delineating additional high-priority targets, which could extend the district’s lifespan and production profile.