Mithril Silver and Gold has delivered a major upgrade to its Copalquin Target 1 resource, boosting indicated gold and silver ounces by 196% within mining shapes that better reflect underground extraction realities.
- 196% increase in indicated gold and silver ounces
- Resource constrained within underground mining shapes incorporating dilution
- High-grade mineralisation confirmed at Targets 3 and 5
- A$7.3 million cash position with no debt
- Fully funded for 12,000 metres of drilling in next quarter
Significant Upgrade to Copalquin Target 1 Resource
Mithril Silver and Gold Limited (ASX:MTH) has unveiled a substantial upgrade to its Copalquin Target 1 Mineral Resource Estimate (MRE) in Durango, Mexico, reporting indicated resources of 343,000 ounces of gold and 8.479 million ounces of silver, alongside inferred resources of 103,000 ounces gold and 3.398 million ounces silver. The upgrade reflects a 196% increase in indicated gold and silver ounces compared to the previous estimate, with 75% of the total resource now classified as indicated, signalling a marked improvement in confidence.
Crucially, the updated MRE is constrained within preliminary underground mining shapes and includes expected mining dilution. This approach provides a more realistic framework for future mine planning and economic evaluation, moving beyond a purely geological inventory. The resource remains open along strike and at depth, offering multiple avenues for expansion.
Drilling Campaign and Technical Advances
The upgrade is underpinned by an extensive drilling program comprising approximately 60,000 metres across 204 drill holes. This includes 127 holes drilled since the last resource update, focused on increasing drill density within the deposit core, extending mineralised shoots, and refining the geological model through enhanced structural mapping.
The mine stope optimisation employed assumes a bulk underground mining method (long hole open stoping) with mining widths averaging around 4 metres. The diluted grade of 4.26 g/t gold equivalent contrasts with an undiluted grade of 6.85 g/t AuEq, reflecting conservative dilution assumptions where lower-grade mineralisation surrounding the high-grade core is factored into the tonnage. Metallurgical recoveries of 96% for gold and 91% for silver support these estimates.
Promising Results at Targets 3 and 5 Expand District Potential
Beyond Target 1, Mithril’s exploration at Targets 3 and 5 has delivered encouraging high-grade intercepts, confirming extensive epithermal-style mineralisation. Target 3 drilling, the first since 2020, intercepted grades such as 0.50 metres at 33.2 g/t gold and 5.9 g/t silver, while Target 5’s La Maquina area revealed 0.85 metres at 6.20 g/t gold and 764 g/t silver down dip from surface.
These results reinforce the district-scale potential of the Copalquin project and underpin plans for further drilling in the second half of 2026 to test extensions and deeper targets identified through geophysics and structural studies.
Financial Position and Upcoming Work Program
At quarter-end, Mithril held A$7.3 million in cash and remained debt free, supported by ongoing Mexican VAT refunds totaling approximately A$940,000 during the quarter. Exploration expenditure was A$3.4 million, focused entirely on Copalquin.
The company is fully funded to complete the remaining 12,000 metres of its 2026 drilling program, with two rigs currently active. Planned September quarter activities include drilling west and northwest of Target 1, follow-up on high-grade historic mine intercepts, deep structural targeting across the district, and advancing economic assessments and permitting, including for the recently acquired La Dura property.
Ownership and Strategic Positioning
Mithril holds a 50% interest in the Copalquin mining concessions with an exclusive option to acquire the remaining 50% by August 2028. The addition of La Dura to its portfolio adds a brownfield asset with established high-grade mineralisation and infrastructure, complementing the district-scale exploration thesis.
CEO John Skeet emphasised the significance of the de-risking milestone represented by the mine-constrained MRE upgrade, noting its role in providing a practical foundation for mine planning and economic evaluation. The ongoing drilling and exploration work aim to expand resources and refine the geological understanding across the Copalquin district.
Bottom Line?
Mithril’s mine-constrained resource upgrade at Copalquin Target 1 sets a more tangible stage for development, but the path to economic viability hinges on upcoming technical studies and continued drilling success.
Questions in the middle?
- How will the upcoming economic assessments influence the project's development timeline?
- Can further drilling maintain or improve the high-grade core continuity beyond current resource boundaries?
- What funding strategies will Mithril pursue to support its ambitious exploration and development plans post-2026?