Mithril’s Copalquin Expansion Raises Questions on Resource Growth and Concession Timing

Exploration Momentum Builds at Copalquin

Mithril Silver and Gold Limited (ASX:MTH, TSXV:MSG) has delivered a strong quarterly update for the period ending March 31, 2025, underscoring its advancing exploration campaign in the prolific Copalquin Gold-Silver District of Durango State, Mexico. The company reported multiple high-grade drill intercepts at its flagship Target 1 area, including standout results such as 0.55 metres grading 110 g/t gold and 7,530 g/t silver from 110 metres depth, highlighting the district’s exceptional mineralisation potential.

These results have prompted Mithril to extend its drilling cut-off date to late May 2025, allowing for a more comprehensive resource update. The ongoing drilling program has now surpassed 11,225 metres since June 2024, with 5,800 metres completed in the March quarter alone, reflecting a sustained commitment to resource expansion.

Expansion into New Targets and Increased Drilling Capacity

Significantly, Mithril mobilised a second drill rig at the end of the quarter, marking a key milestone in its 2025 strategy to complete up to 35,000 metres of drilling across the Copalquin district. This additional rig commenced maiden drilling at Target 2 in early April, an area that has already yielded promising channel samples with grades up to 28.7 g/t gold and 356 g/t silver, suggesting potential for a second high-grade resource within the district.

The company’s technical team has been bolstered with the engagement of Daniel Kunz & Associates and the appointment of an experienced Canadian Exploration Manager, alongside an expanded geological and operations team now comprising eight geologists and a seasoned site manager. This enhanced expertise is expected to accelerate exploration and resource development efforts.

Financial Position and Corporate Stability

On the corporate front, Managing Director and CEO John Skeet has renewed his Executive Services Agreement, reaffirming his full-time focus on Mithril’s growth. The company ended the quarter with a robust cash balance of A$14.2 million, providing a solid financial foundation to support its aggressive exploration agenda. Exploration expenditure for the quarter was $2.322 million, concentrated entirely on the Copalquin district.

Mithril continues to hold a 50% interest in the Copalquin mining concessions, with an exclusive option to acquire the remaining 50% by August 2028, following a recent extension of the payment deadline. The district itself hosts a maiden JORC mineral resource estimate of 529,000 ounces gold equivalent, with substantial upside potential as drilling continues to define new mineralised zones.

Community Engagement and Sustainable Development

Beyond exploration, Mithril maintains a strong commitment to environmental, social, and governance (ESG) principles within the Copalquin district. The company supports local communities through educational initiatives, employment of district residents, healthcare support, and infrastructure development, including upgrades to municipal access roads. These efforts aim to foster sustainable benefits alongside the district’s mining development.

As Mithril advances its drilling programs and resource definition, the Copalquin district is increasingly positioned as a significant gold-silver province within Mexico’s renowned Sierra Madre Gold-Silver Trend, promising to deliver value for shareholders and stakeholders alike.