Mithril Resources (ASX: MTH) has restarted drilling at the El Refugio prospect in Mexico, less than two months after revealing it had discovered a large gold and silver epithermal system.
El Refugio is located within the company’s Cometa project in Mexico’s Copalquin district.
Mithril is also kicking off soil sampling at various other prospects at Cometa, many of which have seen historical mining.
The company’s ground comprises six mineral concessions in Durango state covering more than 70sq km and contains 32 known historic gold and silver underground workings, including the La Soledad and El Refugio mines.
Drilling is now underway of three planned deeper holes at El Refugio to further test the epithermal system.
Grades greater at depth
The company is drilling the eastern side of the target where there are “significantly” higher gold and silver grades and greater width of breccia thickness, all of which have been observed to increase with depth.
Soil sampling has begun at El Refugio West and later this month similar programs will begin at La Soledad West, El Indio and Zaragosa.
Chief executive officer and managing director John Skeet said there is also now “expansive” soil sampling and mapping at El Refugio West.
“The success of the 2020 drill program in the Copalquin district has yielded the important discovery of El Refugio and has confirmed the widespread gold and silver mineralisation in other parts of the district supporting the scale of the district and its prospects of hosting gold and silver mineralisation,” he added.
El Indio hosts multiple historic mines
Another target to be investigated is El Indio.
It contains “multiple” old mines which Mithril says have not yet been visited “and we do not know their extent”.
Among those mines is Santo Domingo which has a tunnel about 80m long with two small shafts.
Previous sampling there returned 1m at 2.7 grams per tonne gold and 39g/t silver.
The Copalquin district is within the Sierra Madre gold-silver trend which extends north-south along the western side of Mexico and hosts many world-class gold and silver deposits.
In August, Mithril received what it described as “exceptional” first assay results from La Soledad which included 3m at 34.72g/t gold and 3,192.0g/t silver, 4.55m at 5.64g/t gold and 325g/t silver, along with 0.5m at 9.27g/t gold and 825.0g/t silver.
Mithril announced a dramatic reshaping back in May when it clinched the Mexican ground, filled a rights issue, and bedded down a headquarters shift from Adelaide to Melbourne.
It had previously announced its Australian projects would be sole funded and financed by venture partners.