Mithril Extends High-Grade Gold-Silver Strike at Copalquin by 300m

Exploration Breakthrough at Target 1

Mithril Silver and Gold Limited has announced compelling exploration results from its Copalquin gold-silver district in Durango State, Mexico. The standout intercept of 10.9 grams per tonne gold equivalent (AuEq) over 8.03 meters at Target 1 extends the known mineralized strike by 300 meters to the west, now exceeding 1,300 meters in length. This extension reinforces the district’s potential for further resource growth within a structurally complex and historically productive mining area.

The high-grade intercept includes 7.19 g/t gold and 260 g/t silver, with sub-intervals reaching nearly 10 g/t gold and over 500 g/t silver, underscoring the bonanza-grade nature of the mineralization. These results build on Mithril’s maiden JORC mineral resource estimate, which already highlights a substantial high-grade gold and silver footprint across the district.

Advancing Multiple Targets and District-Scale Understanding

Beyond Target 1, Mithril is rapidly progressing drilling at Target 5, a large silver-rich zone in the southern part of the district. Eleven drill holes have been completed with assays pending, while channel sampling has expanded the target’s footprint to an impressive 2 km by 2 km area. Meanwhile, preparations are underway to commence drilling at Target 3, with plans to add a third drill rig by early 2026 to accelerate exploration efforts.

Supporting these drilling campaigns is a district-wide aerial magnetic survey scheduled to begin later this month. This geophysical work aims to refine the geological model and help pinpoint the conduits responsible for the widespread high-grade gold and silver mineralization across the 70 square kilometre Copalquin district. Complementary petrographic fluid inclusion studies are also underway, enhancing the understanding of the epithermal system’s genesis and guiding future exploration.

Resource and Development Outlook

The Copalquin district hosts a maiden JORC resource comprising indicated and inferred categories, with over 690,000 tonnes at 7.06 g/t AuEq indicated and 1.7 million tonnes at 6.59 g/t AuEq inferred. This resource translates to approximately 529,000 ounces of gold equivalent, with high recoveries demonstrated in preliminary metallurgical test work. The resource is amenable to conventional underground mining methods, supported by a conceptual mining study and metallurgical results indicating strong gold and silver recoveries.

Mithril holds an exclusive option to acquire 100% interest in the Copalquin concessions by August 2028, positioning the company to capitalize on the district’s multi-million-ounce potential. The fully funded 45,000-meter drill program planned over the next 12 to 14 months aims to expand the resource footprint and unlock further value from this prolific Sierra Madre Gold-Silver Trend district.

Strategic Implications

These exploration advances at Copalquin underscore Mithril’s growing stature as a significant gold-silver explorer in Mexico. The combination of high-grade drill results, expanding target areas, and integrated geological and geophysical studies provides a robust platform for resource growth and project de-risking. Investors will be watching closely as assay results from Target 5 and updated resource estimates emerge, potentially reshaping the district’s valuation and development trajectory.