Mithril Resources has intercepted more than 4m at 62 grams per tonne gold and 445g/t silver during down-dip drilling at the Capalquin project in Mexico. 

The drill hole CDH-050 was designed to test further down-dip extensions at the El Refugio target within Mithril’s (ASX:MTH) gold-silver project, and hit 4.17m at 62g/t gold and 445g/t silver from 233.43m – 285 gram-metres gold equivalent.

The thickness of the intercept supports Mithril’s geological model at El Refugio, demonstrating significantly increased grade thickness of up to three times at depth.

The composition of the minerals, including kaolinite, in the core of CDH-050 show evidence of fluid mixing – a powerful process for the depositation of high-grade gold and silver.

CDH-050 was one of the holes which showed signs of visible gold, as reported by Mithril earlier in the month.

Visible gold in core from drill hole CDH-050 at 234.8m. Pic: Supplied.

The hole is one of a series drilled at the project, with assays pending from those at the nearby La Soledad and Los Reyes targets.

Mithril managing director and CEO John Skeet said the assay was extremely encouraging.

“Drill hole CDH-050 is our best intercept to date in the district, with 285 gram-metres gold equivalent over 4.17m showing a significant increase in grade thickness as we drill deeper at El Refugio,” he said.

“The very high grade gold and silver at El Refugio is important in establishing the strength of this epithermal centre for gold and silver in the district.

“Further drilling at El Refugio will seek to systematically extend the mineralisation and text for further ‘clavos’ (ore shoots), typical in these types of deposits.

“Holes have also been completed to the north at La Soledad and over 1.5km to the east at Los Reyes and we look forward to reporting assays shortly.”

The current round of drilling is funded by a recent $5 million capital raising. It follows on from a maiden drilling program by Mithril in 2020.

The project sits in the historically significant Copalquin mining district, home to some of the world’s most significant gold and silver mines.

Copalquin’s location relative to some of Mexico’s biggest mining projects. Pic: Supplied.


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.