Mithril’s Copalquin gold-silver district in Mexico is looking increasingly prospective after drilling intersected bonanza gold and silver at the El Cometa system.

The shallow CDH-072 drill hole at El Cometa, which twinned historical hole UC-003, hit a 6.8m intersection grading 74 grams per tonne (g/t) gold and 841g/t silver from just 35.2m.

Better – it includes a higher-grade zone of 2.1m at 235g/t gold and 2,554g/t silver from 37.9m.

Drilling at the equally exciting El Refugio discovery has also extended the structure to 650m long and 300m downdip with drilling returning results such as 7.6m at 2.34g/t gold and 143.6g/t silver from 253.25m.

There’s significant potential for further growth with Mithril Resources (ASX:MTH) noting that assays from deep drilling that intercepted multiple veins at El Refugio are still pending while soil sampling has extended the structure a further 1.3km to the west.

Investors certainly welcomed the results, with shares in MTH up 26 per cent this morning.

Managing director John Skeet noted that the results from El Cometa had confirmed historical results while developing the model for the complex system, which will guide future exploration in the structure that extends 2km east to Los Reyes.

“Our deeper drilling to extend the eastern side of the El Refugio clavo has shown excellent continuity intercepting multiple veins,” he added.

“Hole CDH068 has confirmed further westerly extension of the El Refugio structure ahead of exploration work aimed at expanding the structure up to 1.3km west.

“El Refugio has already grown to 650m long and 300m down-dip and with a very high-grade zone (clavo) within the mineralised structure.

“Recently completed deep (+400m) drill holes have continued to intercept the central portion of the clavo and we look forward to reporting these results.”

El Cometa structural model and showing the drill traces for 2020 drilling with the location of drill hole CDH-072. Pic: Supplied

Drill results

Hole CDH-072 was drilled as a follow-up test of the Cometa portion of the Refugio to Los Reyes structural zone after first pass drilling failed to intercept the historically reported high grade gold mineralisation found in historical hole UC-003.

After carrying out further detailed geologic mapping, Mithril has postulated that there are a series of N – S tension gashes or dilatant fractures that were favourable for the deposition of bonanza grade gold.

Follow-up work will include 20m step-out drilling to locate the fractures.

Over at El Refugio, drilling has extended the main structure another 60m to the west while further holes are planned further along strike and down-dip.

Future activity

The rig will soon be relocated to La Soledad to deepen existing drill holes to intercept the Leon vein intercepted by holes CDH-014 and CDH-054 – boasting 4.88m at 10.36g/t gold and 80.9g/t silver from 288.25m.

Mithril says this is an important target determined by vein models developed from 3D modelling of the drill data.



This article was developed in collaboration with Mithril Resources, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.