Mithril Boosts Copalquin Resource with 75% Indicated Classification

Resource Upgrade Reflects Practical Mining Realities

Mithril Silver and Gold Limited (ASX:MTH) has unveiled a significant Mineral Resource Estimate (MRE) upgrade for its Target 1 deposit at the Copalquin project in Durango, Mexico. The new resource incorporates preliminary underground mining shapes and expected dilution, delivering a more realistic and mineable inventory. This approach moves beyond traditional geological estimates by factoring in mining constraints, a key step in de-risking the project as it advances toward development.

The constrained and diluted resource now totals 343,000 ounces of gold and 8.479 million ounces of silver (464,000 ounces gold equivalent) in the indicated category, a 196% increase from the previous MRE. Inferred resources add a further 103,000 ounces gold and 3.398 million ounces silver (151,000 ounces AuEq). Importantly, 75% of the contained metal is classified as indicated, reflecting high confidence in continuity and grade, underpinned by approximately 60,000 metres of drilling across 204 holes at a discovery cost below US$20 per ounce AuEq.

Geological Model and Mining Constraints

The upgraded MRE is founded on a robust geological model developed through extensive drilling and structural analysis. Mithril's team applied Datamine's Mineable Shape Optimizer (MSO) to define underground stope shapes suitable for long hole open stoping (LHOS), assuming average mining widths of about 4 metres. This modeling captures the high-grade core while including surrounding lower-grade material as dilution, reducing the average grade from 6.85 g/t AuEq undiluted to 4.26 g/t AuEq diluted in the indicated resource.

Selective mining methods like cut and fill may be employed in specific areas to reduce dilution and enhance mined grades, but the current estimate takes a conservative approach. The resource remains open along strike and at depth, with ongoing drilling planned to target extensions and refine boundaries.

District-Scale Potential and Ongoing Exploration

Target 1 is just one of multiple mineralised zones within the 70 km² Copalquin district, which hosts numerous historic silver and gold workings. Mithril is actively drilling at Targets 3 and 5, with recent results confirming high-grade mineralisation and supporting the district's multi-million-ounce potential. The company is fully funded for an additional 12,000 metres of drilling in 2026, aiming to advance Target 5 to an initial resource and expand Target 1 further.

Metallurgical test work indicates high recoveries of 96% for gold and 91% for silver using conventional flotation and cyanide leaching processes, supporting the feasibility of on-site processing. Environmental and permitting considerations remain at an early stage, with the project currently classified as low-impact exploration under Mexican regulations.

Technical Oversight and Reporting Standards

The MRE was prepared in accordance with CIM and JORC standards, supervised by independent Qualified Persons including John Sims of Sims Resources LLC. The estimate incorporates rigorous quality assurance and quality control protocols, including detailed sampling, assay verification, and geological modeling. A NI 43-101 Technical Report is expected within 45 days, providing further technical detail and validation.

With a resource now directly applicable to mine planning and a low discovery cost, Mithril positions Target 1 as one of the higher-quality pre-development underground gold-silver resources in Mexico. The upcoming engineering and economic studies, alongside ongoing exploration, will be critical in defining the project's path to development.