Mithril Builds Momentum with High-Grade Drilling and Structural Insights at Copalquin

District-Scale Silver-Gold System Expands at Copalquin

Mithril Silver and Gold Limited (ASX:MTH) is rapidly advancing its Copalquin silver-gold project in Durango, Mexico, with exploration drilling confirming a large, vertically extensive epithermal system now defined over 9 kilometres of strike and 1,200 metres vertically. The company’s ongoing Phase IV drilling at Target 1 is on track for a resource update by mid-2026, following the extension of the El Refugio strike length by 300 metres to the west and open-ended mineralisation to the east and down dip.

The maiden drill programs at Targets 3 and 5 have delivered compelling high-grade intercepts, reinforcing the district’s multi-target potential. Target 3 drilling tested 700 metres of strike within a 1.2 km square area, intersecting significant gold and silver grades including 0.5 metres at 33.2 g/t gold and 6 g/t silver. Meanwhile, Target 5 has confirmed a large silver-rich corridor spanning 9.6 km², with standout intercepts such as 2.75 metres at 660 g/t silver equivalent (AgEq) including 2.28 g/t gold and 500 g/t silver. These results establish a pipeline of drill-ready prospects beyond the initial resource footprint. These developments build on Mithril’s earlier progress, including the maiden JORC resource at Target 1, which currently stands at an indicated 691 kt at 5.43 g/t gold and 114 g/t silver, plus inferred 1,725 kt at 4.55 g/t gold and 152 g/t silver. The company’s systematic exploration approach, integrating geological, geochemical, and geophysical data, is paying dividends in identifying new mineralised corridors and targets across the 70 km² district. This momentum is consistent with the company’s recent high-grade silver-gold mineralisation confirmation at Targets 3 and 5.

Structural and Geophysical Surveys Enhance Targeting

Mithril has completed extensive LiDAR and aerial magnetic surveys over both Copalquin and the adjacent La Dura property, revealing detailed structural frameworks and historic mining workings. The LiDAR survey at La Dura uncovered a 1.5 km mineralised corridor hosting multiple historic shafts, adits, and prospecting pits, highlighting a high-priority drill target with evidence of stacked vein systems and structural repetition. The aerial magnetic data at Copalquin has identified untested corridors related to hydrothermal alteration, supporting the geological model of a large epithermal system with multiple mineralised structures. Interpretation of these datasets is ongoing and will guide upcoming drilling campaigns, including follow-ups at Targets 3 and 5 as well as new prospects in Targets 4 and 6. The integration of these geophysical insights with field mapping and sampling is a continuation of the company’s disciplined targeting framework, which has already yielded significant drill results and is expected to accelerate resource growth. These efforts align with Mithril’s previously announced plans for up to 25,000 metres of drilling in 2026, as detailed in their aggressive 2026 drilling plans.

Corporate Strength and Leadership Bolster Exploration Drive

Financially, Mithril remains well positioned to fund its exploration ambitions, ending the March quarter with A$10.8 million in cash and no debt. The company continues to benefit from Mexican VAT refunds, adding approximately A$0.5 million post-quarter. Exploration expenditure for the quarter was A$2.86 million, focused on advancing Copalquin and completing the La Dura LiDAR survey. Enhancing its technical team, Mithril appointed James Barr as Vice President, Exploration. Barr brings over 20 years of international experience in epithermal gold-silver systems in Mexico, including senior roles at SilverCrest Metals, a company recently acquired for US$1.7 billion. His expertise is expected to accelerate the development of Mithril’s district-scale exploration thesis and drilling programs. This leadership addition follows the company’s strategic acquisition of the La Dura concessions, expanding its footprint and potential for discovery in Durango State. Mithril’s CEO John Skeet emphasised the transformative nature of 2026, highlighting the growing scale and multi-target nature of Copalquin and the emerging high-impact drill opportunities at La Dura.

Upcoming Catalysts and Exploration Focus

Looking ahead, Mithril plans to complete resource expansion and infill drilling at Target 1 to support the mineral resource update anticipated in the second half of 2026. Concurrently, follow-up drilling at Targets 3 and 5 will test extensions of high-grade mineralisation and refine the geological model. The company will also finalise a structural geology study and alteration model for Copalquin, advancing understanding of the system’s controls on mineralisation. At La Dura, interpretation of the aeromagnetic survey will inform initial drill targeting on the newly identified mineralised corridors. Collectively, these activities aim to convert Mithril’s extensive landholdings and historic workings into a significant silver-gold discovery with scalable resource potential. The company’s methodical approach, supported by robust cash reserves and strengthened technical leadership, positions it well to capitalise on the district’s exploration upside. The forthcoming assay results from Target 1 drilling and the interpretation of geophysical data will be key milestones to watch in the months ahead. Mithril’s progress underscores the evolving nature of the Copalquin district as a major silver-gold system, with multiple targets and structural corridors yet to be fully tested, echoing the company’s earlier resource expansion and acquisition updates.