Mithril Silver and Gold Limited reports strong drilling results at its Copalquin gold-silver project in Mexico, backed by a $12.5 million placement to fund an expanded 35,000-metre 2025 exploration program.
- High-grade drill intercepts expand maiden resource footprint at Copalquin
- Completion of $12.5M placement plus $4.4M from option exercises funds 2025 drilling
- Infrastructure upgrades on track to support expanded exploration activities
- Maiden resource update scheduled for end of Q1 2025
- Cash balance of A$15.74M plus A$1M term deposit ensures strong financial position
Strong Drilling Results Bolster Copalquin Project
Mithril Silver and Gold Limited (ASX:MTH, TSXV:MSG) has delivered a robust quarterly update for the period ending December 2024, highlighting significant progress at its flagship Copalquin gold-silver district in Durango State, Mexico. The company’s ongoing drilling campaign at the Target 1 area continues to expand the maiden resource footprint, with several high-grade intercepts reinforcing the district’s multi-million-ounce potential.
Noteworthy drill results include a standout intercept from hole CDH-162, which returned 4.60 metres grading 5.51 g/t gold and 182.4 g/t silver starting at 99 metres, including a 0.60-metre section assaying an impressive 28 g/t gold and 997 g/t silver. Similarly, hole CDH-161 at the El Cometa zone yielded 9 metres at 2.06 g/t gold and 90.26 g/t silver, with higher-grade sub-intervals indicating strong mineralisation continuity.
Funding Secured for Aggressive 2025 Exploration
Backing these promising results, Mithril successfully completed a $12.5 million placement in October 2024, supplemented by $4.4 million from option exercises, providing a solid financial foundation for an ambitious exploration agenda. The company plans to execute an additional 35,000 metres of drilling throughout 2025, aiming to further delineate and expand the resource base across multiple target areas within the Copalquin district.
Cash reserves stood at A$15.74 million at the end of the quarter, with an additional A$1 million held in a term deposit, underscoring Mithril’s strong liquidity position to support its exploration commitments.
Infrastructure and Resource Update on Track
Complementing the drilling program, infrastructure upgrades are progressing as planned. The municipal access road connecting to the township of El Durazno is scheduled for completion by late March 2025, facilitating the deployment of a second drill rig and enabling accelerated exploration across two additional advanced target zones.
The maiden resource update for the Target 1 area remains on schedule for release by the end of the first quarter of 2025. This update will be a critical milestone, potentially reshaping the valuation narrative for Mithril as it transitions from exploration to resource expansion.
Sustainable Community Engagement and Long-Term Vision
Mithril continues to emphasize its commitment to environmental, social, and governance (ESG) principles within the Copalquin district. The company supports local communities through education initiatives, employment opportunities, medical services, and infrastructure development, fostering sustainable growth alongside its mining activities.
With an exclusive option to acquire 100% ownership of the Copalquin concessions extended to August 2028, Mithril is strategically positioned to consolidate its holdings and advance the project towards development.
Bottom Line?
As Mithril gears up for a pivotal resource update and expanded drilling, the market will be watching closely to see if Copalquin’s promise translates into a major new gold-silver discovery.
Questions in the middle?
- How will the upcoming maiden resource update impact Mithril’s valuation and investor sentiment?
- What are the exploration risks associated with expanding drilling into new target areas beyond Target 1?
- How might metal price fluctuations affect the economic viability of Copalquin’s high-grade zones?