Exploration Risks Loom as Target 2 Drilling Yields Mixed Results at Copalquin

• High-grade gold-silver mineralization extended to 8 km strike and 1,200 m vertical
• Drilling commencing at Target 5 with Target 3 planned for late Q3 2025
• New sampling extends Target 2 mineralized trend by 1,000 metres
• Historic mines sampled confirming continuous district-scale mineralization
• Maiden JORC resource established at Target 1 with ongoing exploration potential

Expanding the Copalquin Footprint

Mithril Silver and Gold Limited has announced a significant expansion of its Copalquin Project in Durango State, Mexico, unveiling a high-grade gold-silver mineralized system that now stretches over 8 kilometres in strike length and extends 1,200 metres vertically. This development underscores the district-scale potential of the project, which hosts multiple historic mines and extensive surface workings.

Building on detailed geological mapping and channel sampling, Mithril is accelerating its exploration program with drilling set to commence imminently at Target 5, following encouraging assay results. Target 3 drilling is scheduled for late in the third quarter of 2025, while Target 2 has seen its mineralized trend extended by an additional 1,000 metres to the west-southwest, highlighting the ongoing discovery potential within the district.

Robust Sampling Validates District Potential

Recent channel sampling across Targets 2, 3, 4, and 5 has returned impressive grades, with assays such as 1.00 metre at 19.85 grams per tonne gold and 270 grams per tonne silver at Target 3, and 0.50 metre at 6.21 grams per tonne gold and 265 grams per tonne silver at Target 2. Soil sampling at the San Manuel Mine area (Target 4) has also yielded high-grade results, further confirming the continuity and scale of mineralization across the district.

Historic underground workings, including the Santa Cruz multi-level mine, have been sampled, reinforcing the presence of continuous mineralization over the extensive 8 km strike. These findings complement the maiden JORC mineral resource estimate at Target 1 (El Refugio-La Soledad), which reports indicated and inferred resources totaling over 370,000 ounces of gold equivalent, positioning Copalquin as a significant epithermal gold-silver district within the prolific Sierra Madre Gold-Silver Trend.

Drilling and Development Outlook

With drilling underway at Target 5 and planned at the Zaragosa Mine area and Target 3, Mithril is entering a pivotal phase of exploration aimed at expanding its resource base. While recent drilling at Target 2 has been less conclusive, ongoing mapping and sampling continue to refine targets and guide future drill programs.

Metallurgical test work conducted on drill core composites supports the feasibility of conventional underground mining and on-site processing, with high recovery rates for both gold and silver. Mithril holds an exclusive option to acquire 100% interest in the Copalquin mining concessions by August 2028, setting the stage for potential development as exploration advances.

John Skeet, Managing Director and CEO, emphasized the scale and promise of the Copalquin system, noting the district’s multi-kilometre mineralization and the parallel advancement of multiple high-priority targets. The company’s methodical approach, combining historic data, modern sampling, and systematic drilling, positions it well to unlock the district’s substantial gold and silver potential.

Bottom Line?

As Mithril accelerates drilling across multiple high-grade targets, Copalquin’s evolution into a major gold-silver district is poised to reshape its exploration narrative.

Questions in the middle?

• How will upcoming drilling results at Targets 3 and 5 influence the current resource estimate?
• What are the implications of the less significant drilling results at Target 2 for future exploration strategy?
• How might metallurgical test outcomes impact the economic viability and development timeline of the Copalquin Project?