Mithril Resources hits bonanza grades in maiden drilling at Copalquin gold-silver project

Australian explorer Mithril Resources (ASX: MTH) has hit bonanza grades in the first two holes of a maiden drilling campaign at its flagship Copalquin gold-silver project in Mexico.

The company will complete 35 holes for a total 5,000m of diamond drilling by November, using a man-portable rig owned by Mexican drilling contractor Globexplore.

The first hole in the campaign successfully intercepted a vein at the La Soledad mine to confirm historic assays of 3m at 34.72 grams per tonne gold and 3,129g/t silver from 112m, including 1m at 88.4g/t gold and 6,750g/t silver from 114m.

A second hole was drilled 45m east of La Soledad towards the mine entrance and intersected 1m of open workings before intercepting high-grade gold and silver mineralisation in the footwall.

Best results were 4.55m at 5.64g/t gold and 325g/t silver from 91.95m including 1.5m at 9.82g/t gold and 574g/t silver from 95m.

A continuation of this hole also intercepted a second parallel vein with 0.5m at 9.27g/t gold and 825g/t silver from 141.2m.

Six other completed holes have continued to intersect the La Soledad vein at depth and further along strike.

Assay results for the next batch of drill samples are expected in September.

Valuable information

Mithril chief executive officer John Skeet said the early bonanza grades and footwall intersections bode well for the remainder of the program.

“It can be a challenge to drill around old workings and rely on historic information [for modern exploration],” he said.

“These first two holes have given us valuable information for gold and silver grades, the location of old workings and the La Soledad vein itself, which we have continued to intercept with the subsequent six completed holes.”

Historic region

The Copalquin project covers 70sq km of Durango State and contains more than 32 historic gold and silver mines and workings.

The district sits within the Sierra Madre gold-silver trend, which extends north-south along the western side of Mexico and hosts many world-class deposits.

Previous drilling by other operators has returned significant results of 13.25m at 74.89g/t gold and 706g/t silver; 17.77m at 45.16g/t gold and 118.2g/t silver; and 4.53m at 28.99g/t gold and 2350.3g/t silver.

Mithril acquired Copalquin in May, following the purchase of private Australian exploration company and former project owner Sun Minerals.

Progress to date

Mithril’s maiden drilling campaign commenced beneath historic workings at La Soledad, with eight holes completed to date.

Three additional holes were abandoned at depths between 10m and 21m due to movement in rock fill drill pads following heavy August rains.

Mr Skeet said two new pads were established at the second La Soledad drill target and the planned holes completed with minimal impact on the campaign and budget.

Drilling at La Soledad will be completed during the first part of the campaign with three more holes planned to target the vein between 60m and 80m down-dip.

Follow-up holes have been planned for later in the year.

Globexplore will then move its rig to El Refugio – the oldest mine at Copalquin – to complete a series of holes aimed at confirming historic drilling results.

Subsequently, the drill will be moved to El Cometa to test the extent of high-grade gold intercepts reported from historic drilling in that area.