Mithril Silver and Gold has delivered compelling drilling results at its Copalquin project in Mexico, highlighting significant high-grade gold and silver intercepts that underpin an imminent resource update.
- High-grade intercepts up to 15.25 g/t gold and 533 g/t silver
- Over 11,000 metres drilled in 2026 as part of 25,000-metre program
- Resource update for Target 1 scheduled for late June 2026
- New veins and expanded mineralisation footprint confirmed
- Acquisition progress and exploration ongoing at La Dura property
Strong Drilling Results Reinforce District-Scale Potential
Mithril Silver and Gold Limited (ASX:MTH) has reported robust drilling outcomes from its Copalquin property in Durango, Mexico, with standout intercepts including 7.25 metres grading 4.01 g/t gold and 225 g/t silver, and a high-grade sub-interval of 0.5 metres at 15.25 g/t gold and 533 g/t silver at the El Refugio area. These results come from the final holes of the 2026 Target 1 upgrade drilling campaign, which collectively have expanded the known mineralised footprint and enhanced confidence in the geological and grade continuity models.
The El Refugio vein system, a key component of the Target 1 resource, now shows evidence of a large, high-energy mineralised system with multiple breccia textures hosting high-grade mineralisation. Notably, drill hole RE26-013 intercepted 7.25 metres of mineralised quartz breccia within a 12.6-metre quartz-filled polymictic breccia interval, highlighting the system's complexity and scale. This builds on earlier intercepts such as RE26-009, which returned 9.65 metres at 7.00 g/t gold and 370 g/t silver, underscoring continuity over approximately 190 metres between these holes.
Resource Upgrade and Geological Model Refinement Underway
With the drilling campaign at Target 1 substantially complete, Mithril is focused on finalising an updated Mineral Resource Estimate (MRE) expected in late June 2026. The update aims to convert a significant portion of the Inferred resource classification into Indicated, improving resource confidence ahead of potential development. For the first time, the updated model will incorporate detailed mapping of a post-mineral dyke system that had previously masked mineral continuity. Recent drilling confirmed mineralisation continues across this dyke at similar grades and thicknesses, which has split and offset the vein system.
James Barr, Mithril’s VP Exploration, emphasised the continuity of mineralisation with a northwest plunge that remains open for further testing. The company also plans to expand ground-based mapping and target development in the District North Section, focusing on areas not previously drill tested and following up successes in the Target 5 area.
District-Scale Exploration and La Dura Acquisition Progress
Mithril’s 2026 exploration program across the Copalquin district is ambitious, with over 11,238 metres drilled so far as part of a planned 25,000-metre campaign. The district covers 70 km² and hosts more than 100 historic underground workings, with multiple target areas identified for resource growth. Mapping and sampling confirm a large epithermal silver-gold system with a complex conduit network responsible for widespread mineralisation.
Adding to its portfolio, Mithril secured an exclusive option to acquire 100% of the adjacent 20 km² La Dura property in December 2025. This brownfield asset includes the historic La Dura mine and shows promising mineralisation corridors identified through LiDAR and aerial magnetic surveys. The acquisition consideration includes a US$25,000 initial payment and 50,000 ordinary Mithril shares, subject to a holding period.
Metallurgical and Mining Study Supports Underground Development
Preliminary metallurgical test work on El Refugio drill core composites indicates high recovery rates of 91% for silver and 96% for gold, supporting the potential for conventional underground mining methods. The average vein width is approximately 4.5 metres, with mineralisation open at depth and along strike, providing a solid foundation for further resource expansion and development studies.
The Copalquin district remains a compelling exploration frontier with multiple veins and structures yet to be fully tested. Mithril’s ongoing drilling, mapping, and geophysical surveys are set to refine targets and build on the substantial maiden resource of over 370,000 ounces of gold and 10 million ounces of silver at Target 1.
Bottom Line?
Mithril’s latest drilling results reinforce Copalquin’s high-grade potential ahead of a key resource update, setting the stage for further exploration and development decisions.
Questions in the middle?
- How will the updated Mineral Resource Estimate affect the classification of inferred resources at Target 1?
- What are the implications of the newly modelled post-mineral dyke on future drilling and resource continuity?
- How might exploration at La Dura complement or accelerate value creation alongside Copalquin?