Mithril Extends High-Grade Gold-Silver Zones at Copalquin Ahead of June Resource Update

High-Grade Drilling Pushes Resource Boundary at Target 1

Mithril Silver and Gold Limited (ASX:MTH) has delivered a compelling update from its Copalquin property in Durango State, Mexico, with drill hole RE26-009 intercepting 9.65 metres at 7.00 g/t gold and 370 g/t silver, including a blistering 0.5 metres grading 30.7 g/t gold and 1,780 g/t silver. This intercept lies roughly 300 metres west of the 2021 Mineral Resource Estimate (MRE) boundary, signaling a meaningful expansion of the known mineralised footprint ahead of the company's planned resource update in June 2026.

The final phase of drilling within the November 2021 Target 1 MRE footprint has reinforced the geological model, confirming vein thicknesses averaging 4.5 metres and continuity of mineralisation across key vein systems such as El Refugio and La Soledad. This drilling campaign, which has completed 13 holes totalling 4,383 metres around the perimeter of the inferred resource, aims to bolster confidence in the resource classification and underpin the imminent resource upgrade.

District-Scale Exploration Accelerates with New Targets

The company’s 2026 exploration programme is ambitious, targeting up to 25,000 metres of drilling across the Copalquin district within the first 6 to 8 months. This includes expanding known mineralised zones and testing newly identified high-priority targets generated from comprehensive mapping, sampling, aerial magnetic surveys, and structural studies. The district’s extensive history of mining, with over 100 historic underground workings and multiple multi-level mines, underscores the scale of the epithermal silver-gold system that Mithril is aggressively exploring.

Adding to the district’s potential, Mithril recently acquired the adjacent 20 km² La Dura property, which hosts a 1.5 km mineralisation corridor and includes the historic four-level high-grade La Dura mine. Interpretation of a recent aerial magnetic survey is underway, complementing ongoing exploration activities across both properties. This acquisition bolsters Mithril’s portfolio and exploration pipeline, positioning the company to leverage district-scale growth opportunities. These developments build on the company’s earlier resource expansion drilling at Target 1 and align with its aggressive 2026 drilling plans reported in February aerial magnetic survey completed.

Geological Insights and Resource Confidence

Exploration results from holes such as LS26-005 at La Soledad demonstrate elevated gold values beyond previous resource footprints, suggesting the mineralisation style may differ from that at El Refugio. The company’s VP Exploration, James Barr, highlighted that the drilling objectives; to test projected ore shoot trends for expansion and to confirm geological continuity within the existing footprint; have been successfully met, enhancing confidence in the geological model.

The drilling also elucidated structural complexities, including the influence of a post-mineral dike system cutting across the northwest plunging El Refugio trend, which impacts mineralisation distribution. Metallurgical test work indicates high recoveries for both gold and silver, supporting the viability of conventional underground mining and processing methods for the El Refugio-La Soledad resource.

Upcoming Milestones and Strategic Outlook

Mithril is on track to complete this phase of drilling by mid-May, with assay results feeding into the updated Mineral Resource Estimate expected in late June 2026. The company continues to integrate district-wide geophysical data and plans further drill testing of new targets generated from ongoing exploration work. The combination of confirmed high-grade mineralisation, resource footprint expansion, and a robust pipeline of exploration targets positions Mithril to advance its district-scale gold-silver project significantly in the coming months.

As Mithril approaches its next resource update, investors will be watching closely to see how these drilling results translate into resource growth and whether the company can sustain its momentum across multiple targets in this prolific Mexican epithermal district. The integration of the La Dura property further adds a layer of complexity and opportunity that could shape Mithril’s exploration narrative through 2026 and beyond.