Mithril Resources Ltd (ASX: MTH) (Mithril or the Company) is pleased to provide exploration results for its 100% optioned Copalquin Gold Silver Project in Mexico where a maiden 529koz gold equivalent high-grade gold-silver JORC resource has been defined at El Refugio-La Soledad.

Mithril CEO and Managing Director, John Skeet, commented: 'Whilst the program of deep holes at El Refugio was technically challenging to complete, we have successfully confirmed the significant depth potential of the major El Refugio upwelling feeder structure. Recent drilling has projected the upwelling zone to target current and future drilling with considerable additional depth potential. Further drill holes CDH-141 and 142 have been completed and sent for assay with abundant silver sulphide mineralisation observed in intercepts. Drilling is now in progress on the eastern side of the main upwelling zone, successfully intercepting the main structure with drill holes CDH-143 and CDH-144. Importantly, we are observing boiling zone characteristics in the drill core. This is an exciting time as we drill to determine the excellent additional depth potential of this significant high-grade gold-silver deposit at El Refugio.

Introduction

Since acquiring the property in May 2020, Mithril has been drilling in the Copalquin district with one manportable diamond drill rig developing several targets in the district and delivering a high-grade maiden JORC resource at El Refugio. The current program of work is exploring two main trends of historic mine workings across the district further ranking and developing drill targets and expanding/upgrading the maiden resource at El Refugio. During the maiden drill program in 2020, Mithril identified a large upwelling hydrothermal zone at El Refugio which hosts the maiden mineral resource estimate: This high-quality and high-grade resource is open at depth beyond where some of the highest grade intercepts were recorded. Additionally, there is significant upside beyond this maiden resource area to increase the district resources for gold and silver. Mining study work and metallurgy reported earlier this year, show the current resource material to be amenable to conventional underground mining and processing methods, yielding high gold and silver extraction.

ABOUT THE COPALQUIN GOLD SILVER PROJECT

The Copalquin mining district is located in Durango State, Mexico and covers an entire mining district of 70km2 containing several dozen historic gold and silver mines and workings, ten of which had notable production. The district is within the Sierra Madre Gold Silver Trend which extends north-south along the western side of Mexico and hosts many world-class gold and silver deposits. Multiple mineralisation events, young intrusives thought to be system-driving heat sources, widespread alteration together with extensive surface vein exposures and dozens of historic mine workings, identify the Copalquin mining district as a major epithermal centre for Gold and Silver. Within 15 months of drilling in the Copalquin District, Mithril delivered a maiden JORC mineral resource estimate demonstrating the high-grade gold and silver resource potential for the district.

Mithril is currently exploring in the Copalquin District to expand the resource footprint in 2022 to demonstrate its multi-million ounce gold and silver potential. Mithril Resources is earning 100% interest in the Copalquin District mining concessions via a purchase option agreement detailed in ASX announcement dated 25 November 2019

Contact:

John Skeet

Tel: +61 435 766 809

Email: jskeet@mithrilresources.com.au

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