• Drilling returns multiple high-grade veins at Copalquin District project
  • Mithril is looking to double the existing resource 
  • The expanded resource drilling program at Target 1 is set for completion at the end of March 

 

Special Report: Mithril Silver and Gold is moving forward with resource update drilling at the Copalquin District project in Mexico where results continue to define the north-westerly trending ‘La Soledad’ structure, part of the Target 1 resource area. 

Drilling at La Soledad intersected multiple high-grade veins and delivered impressive results for both gold and silver, including a 4.95m intersection at 20.5g/t gold and 1,833g/t silver from 107m. 

Other intersections included 0.56m at 22.8g/t gold and 1,425g/t silver from 130.49m and 3.77m at 1.42g/t gold and 100.8g/t silver from 136.78m. 

Further key results were:

  • 2.55m at 9.97 g/t gold and 571.8 g/t silver from 112m, including 1.00m at 20.7 g/t gold and 1,130 g/t silver from 113m
  • 4.85m at 1.47g/t gold and 165.3g/t silver from 67.2m, including 0.80m at 4.49g/t gold and 308g/t silver from 68.0m, as well as 0.55m at 2.42 g/t gold and 504 g/t silver from 70.0m

Considerable strike and depth potential exists in the area where an estimated 100 historical underground gold-silver mines and workings make up one of the many precious metal districts in Mexico’s prolific Sierra Madre gold-silver trend. 

Mithril Silver and Gold (ASX:MTH) is looking to double the size of the ~529,000oz gold equivalent resource following the addition of a further seven drill holes in February. 

 

35,000m of drilling in 2025 

MTH managing director and CEO John Skeet said the drill program is expanded in the La Soledad area with several additional holes to complete before moving the drill to Refugio West in the Target 1 resource area.

“Drilling in the Target 1 area will continue until the end of March 2025, the anticipated cut-off date for the resource update drilling,” he said. 

“The second drill is scheduled to be on site and commence drilling early April, at the Target 2 area. 

“Progress is on track to complete 35,000 metres of drilling this year, aiming to considerably expand the resource footprint and define the 10 km wide, extensive epithermal silver-gold system in our 70km2 district.”

The gold sector remains a standout in the Aussie and global equity market despite a recent pullback in prices last Thursday. 

Canaccord Genuity analyst Tim McCormack noted at a WA Mining Club function last week that he still sees ASX gold miners having 20% upside at current prices. International names such as Barrick and Newmont could be as much as 40% undervalued. 

Others say the gold market could be in the early stages of a 10-year bull run, with the entry of central bank buyers changing the shape of the market. 

This means more corporate dealmaking and a ramp up in exploration drilling and spending for junior goldies. 

 

Drilling completion by Q1 end 

MTH’s current maiden resource drilling is scheduled to be completed by end of Q1 2025.

Channel sampling work, using a diamond rock saw, has continued adjacent to the Target 1 area and immediately to the south towards the Copalquin creek. 

Sampling results in October last year pulled up to 736g/t silver and 8.99g/t gold, adding to the geologic and resource modelling work within Target 1. 

Meanwhile at El Cometa on the eastern side of the Target 1, the last two holes completed at resource area returned multiple shallow intercepts such as 1m at 1.56g/t gold and 58.3g/t silver from 31m. 

 

 

This article was developed in collaboration with Mithril Silver and Gold, 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.

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