Mithril Silver and Gold (ASX: MTH) has commenced a 3,300-metre drilling campaign at Target 3 within its Copalquin District gold-silver project in Mexico’s Durango state.
The maiden campaign, which will test the continuity and scale of mineralisation, represents an important step toward unlocking the broader potential of the Copalquin epithermal system.
The large area has been subject to significant historical mining activity on the eastern side, with recent channel sampling results at the El Jabali workings within Target 3 returning up to 0.65 metres at 16 grams per tonne gold and 1,275g/t silver.
Copalquin District covers 70 square kilometres of acreage including several dozen gold-silver mines and workings – 10 of which had notable production – within the Sierra Madre trend that extends north-to-south along the western side of Mexico and hosts many gold-silver districts.
Within 15 months of drilling at Copalquin, Mithril delivered the Target 1 maiden mineral resource estimate, demonstrating the district’s high-grade gold-silver resource potential.
Larger Program Planned
Mithril’s Target 3 campaign forms part of a 25,000m drilling program the company has planned for Copalquin District in the first half of this year.
It includes drilling at Target 5 and Target 1, which Mithril has scheduled for completion during the current quarter.
The company will then conduct an update to the Target 1 mineral resource estimate of 691,000 tonnes at 5.43g/t gold and 114g/t silver for 121,000 ounces gold and 2.5 million ounces silver (indicated), along with 1.72Mt at 4.55g/t gold and 152g/t silver for 252,000oz gold and 8.41Moz silver (inferred).
A drone magnetic survey over the Copalquin and La Dura mining concession areas is also planned to start this month.
Multiple Prospective Targets
Managing director John Skeet said the company was keen to explore the multi-target Copalquin District.
“We are very pleased to have commenced drilling at Target 3, which represents a large and highly-prospective area on the eastern side of the district underpinned by extensive historic mine workings,” he said.
“Multiple high-grade workings and targets at Copalquin provide strong evidence of a well-developed feeder-style epithermal system and our programs to test continuity and scale of mineralisation are important steps in our strategy to unlock the broader district-scale potential of the Copalquin system as we advance several targets in parallel.”
Mithril has an exclusive option to purchase a 100% interest in the Copalquin concessions, by paying US$10m by August 2028.
