Mithril’s Copalquin Expansion Raises Questions on Resource Growth and Ownership

Exploration Momentum Builds at Copalquin

Mithril Silver and Gold Limited has delivered a compelling quarterly update, highlighting significant progress in its Copalquin Gold Silver District in Durango State, Mexico. The June 2025 quarter saw the company extend its footprint with high-grade assay results from multiple targets, notably Target 2 and Target 5, reinforcing the district’s potential as a prolific gold-silver system within the renowned Sierra Madre trend.

Channel sampling and initial drilling at Target 2, situated at higher elevations in the eastern part of the district, yielded impressive intercepts such as 11.5 meters at 8.61 grams per tonne gold and 57.6 grams per tonne silver, including a standout 0.85 meters grading 109.5 grams per tonne gold and 325 grams per tonne silver. These results confirm a mineralized vein system open at depth and along strike, with ongoing drilling aimed at expanding the discovery.

Expanding Targets and Resource Potential

Target 5, a broad 2.5-kilometer-wide zone in the southwest of the district, has been primed for its first drilling campaign next quarter following extensive channel sampling. Assays from surface and underground workings returned high-grade silver values exceeding 700 grams per tonne alongside notable gold grades, underscoring the area’s promise. Mapping efforts have revealed multiple vein systems with good continuity, suggesting a district-scale epithermal system spanning vertical reliefs of over 1,000 meters.

Meanwhile, resource expansion drilling at Target 1 successfully intercepted the El Refugio structure down dip, producing high-grade results such as 2.9 meters at 9.06 grams per tonne gold. This step-out drilling supports the potential to grow the existing maiden JORC mineral resource estimate, which currently stands at over 370,000 ounces of gold equivalent across indicated and inferred categories.

Strengthening Financial and Leadership Foundations

On the corporate front, Mithril completed a C$11.5 million brokered private placement in July 2025, bolstering its cash reserves to A$11 million at the end of the June quarter. This capital injection provides a solid financial runway to advance exploration and development activities across the district. Exploration expenditure for the quarter totaled $2.675 million, focused exclusively on the Copalquin project.

Leadership changes included the appointment of Meghan Lewis, a mining finance professional and geologist, as a non-executive director, and Michael Port stepping into the CFO role after managing the company’s financial reporting since 2020. These appointments reflect Mithril’s commitment to strengthening governance and operational expertise as it progresses towards resource expansion and potential development.

Looking Ahead – Unlocking Copalquin’s Full Potential

Mithril holds a 50% interest in the Copalquin mining concessions with an exclusive option to acquire full ownership by August 2028. The district’s extensive historic workings, combined with recent high-grade results and ongoing exploration success, position Copalquin as a promising gold-silver district with multi-million-ounce potential. Continued drilling, mapping, and sampling across multiple targets are expected to further delineate the resource and enhance the project’s value proposition.