Mithril Silver and Gold (ASX: MTH) has reported high grades in shallow intercepts from expansive resource drilling at Target 1 within the district-scale Copalquin property in Mexico, ahead of a planned mineral resource estimate update.
The company will complete approximately 3,000 metres of work in the current quarter to add to recent intersections of very high-grade gold and silver and provide supportive geological control data for the Target 1 model.
Drilling extended the mineralised structure by 300m to the west, and potentially a further 600m into the historic El Gallo workings, which would provide significant scale upside to an area where high-grade gold and silver has been previously intercepted.
Also on the western side of Target 1, a 300m down dip extension of the Refugio 1 structure reflected some of the deepest intercepts in the area to date and offered vectors for continued expansion of the Copalquin district model.
Highlight assays to date have been 1.55m at 2.11 grams per tonne gold and 5.5g/t silver from 24.65m, along with 1.35m at 21.9g/t gold and 357g/t silver from 142.75m including 0.5m at 57.7g/t gold and 924g/t silver from 143.6m.
Potential for Major Feeder Zone
Drilling across a 150m anomalous silver zone intercept on the western side of Target 1 revealed extensive hydrothermal alteration that Mithril believes could represent a major feeder zone.
The breadth of alteration indicates that past fluid flow was not restricted to narrow vein conduits, but instead affected a large volume of rock, increasing the likelihood of multiple mineralised structures, stacked veins, or locally-disseminated mineralisation.
The presence of a wide alteration halo combined with silver-rich mineralisation is often a strong indicator of a robust, long-lived hydrothermal system, with important implications for scale and exploration potential.
Mithril is undertaking an aggressive exploration program across the Copalquin district in 2026, with a total of 25,000m drilling planned during the first half of the year.
The district features in excess of 100 historical underground workings, including several producing multi-level mines and 200 surface workings.
Target 1 Resource Expansion
Managing director John Skeet said drilling had produced strong potential for the Target 1 resource upgrade.
“Drilling has successfully expanded the resource potential for our upcoming mineral resource estimate update and provided important success in the development of the larger district-scale model,” he said.
“We have intersected a broad anomalous silver zone on the western side with pervasive hydrothermal alteration associated with the district-scale structure and have confirmed vertical continuity of the system with clear scope to expand the Target 1 resource beyond the current model.”
The company’s upcoming work at Copalquin will focus on expanding known mineralised zones, testing new high-priority targets, integrating district-wide geophysical data, and further advancement of its district-scale exploration thesis.
