Mithril’s La Dura Deal Raises Stakes in Durango Gold-Silver District

• Option to acquire 100% of La Dura property within 4 years for US$4 million
• La Dura includes 5 contiguous concessions totaling 2,052 hectares near Copalquin
• Historic gold-silver mine with existing processing infrastructure
• Planned LiDAR and aerial magnetic surveys in 2025–26 to guide exploration
• Copalquin district hosts a significant high-grade gold-silver resource

Strategic Expansion in Durango

Mithril Silver and Gold Limited has taken a decisive step to broaden its presence in Mexico’s prolific Durango State by executing a purchase option agreement for the La Dura gold-silver property. Situated less than 20 kilometres from Mithril’s flagship Copalquin project, La Dura offers a compelling opportunity to consolidate landholdings within a highly prospective epithermal gold-silver district.

The La Dura property comprises five contiguous mining concessions covering over 2,000 hectares. Notably, it hosts several historic mines, including a four-level underground operation equipped with a 60 tonne per day processing facility, which last operated in 2013. This existing infrastructure and the extensive historic data from sampling campaigns spanning nearly three decades provide a valuable foundation for Mithril’s exploration efforts.

Exploration Plans and Commitments

Under the terms of the option, Mithril will undertake LiDAR and aerial magnetic surveys within the first year, with the LiDAR survey scheduled imminently. These advanced geophysical techniques will enable detailed mapping of the concession area and help identify new drill targets. The company has also committed to a minimum exploration expenditure of US$200,000 in the second year, focusing on follow-up fieldwork such as mapping, sampling, and eventual drilling.

The option agreement allows Mithril to acquire 100% ownership of La Dura by paying US$4 million within four years. This staged payment structure, combined with the exploration commitments, provides a measured approach to advancing the project while managing financial exposure. Should Mithril exercise the option, the vendor will receive a 2.5% net smelter return royalty, reducible to 1% for US$2.5 million.

Synergies with Copalquin District

La Dura’s proximity to Copalquin is particularly significant. The Copalquin district is a well-established gold-silver mining area within the Sierra Madre Gold Silver Trend, known for its multiple mineralization events and high-grade deposits. Mithril’s maiden JORC resource estimate at Copalquin revealed indicated and inferred resources totaling nearly 373,000 ounces of gold and over 10 million ounces of silver, underscoring the district’s potential.

Drilling at Copalquin is ongoing, with multiple targets being tested and further resource expansion anticipated. The acquisition of La Dura complements these efforts by adding a nearby, geologically analogous asset with historic production and exploration upside. Mithril’s management, with prior experience at La Dura, is well positioned to leverage this knowledge to unlock value.

Looking Ahead

The next 12 to 18 months will be pivotal as Mithril conducts geophysical surveys and advances exploration at La Dura while continuing to develop Copalquin. The integration of these assets could enhance the company’s resource base and strengthen its position in one of Mexico’s premier precious metals districts. Investors will be watching closely for early exploration results and any indications of resource expansion.

Bottom Line?

Mithril’s La Dura option marks a strategic expansion that could accelerate its growth trajectory in Mexico’s rich gold-silver belt.

Questions in the middle?

• What initial results will the LiDAR and aerial magnetic surveys reveal about La Dura’s mineral potential?
• How will exploration findings at La Dura influence the timing and scale of the US$4 million acquisition payment?
• Can Mithril replicate or exceed Copalquin’s resource success at La Dura to enhance district-wide value?