Mithril Resources (ASX: MTH) is now awaiting key assay results from drilling in the Copalquin mining district in Mexico after a maiden diamond core program intercepted high-grade gold and silver.
The company said it has identified Copalquin as a “major epithermal centre for gold and silver” based on multiple mineralisation “events”, indications of system-driving heat sources, widespread alterations and surface vein exposure, as well as dozens of historic mine workings.
In its September quarterly report released this week, the company said it has completed drilling of 2,100m at the La Soledad prospect.
Drilling of 2,300m at the second target, El Refugio, is also “largely completed” by the end of the quarter with assays pending.
A program at target three, El Cometa, will be finished this month and the entire 7,000m program will be wrapped by November, Mithril reported.
The company 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.
Combined assays confirm high gold and silver grades
The Copalquin mining district 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.
The district is within the Sierra Madre gold-silver trend — a district made famous by the 1948 Humphrey Bogart movie, The Treasure of the Sierra Madre — which extends north-south along the western side of Mexico and hosts many world-class gold and silver deposits.
Historic drilling results at Copalquin have indicated the project’s exploration potential with multiple high-grade intercepts including 17.77m at 45.16 grams per tonne gold and 118.2g/t silver from 30.98m below surface at the El Cometa mineAnother intersection recorded was 7.9m at 6.54g/t gold and 140g/t silver at El Refugio.
In August, Mithril received what it described as “exceptional” first assay results from La Soledad, which included 3m at 34.72g/t gold and a bonanza 3,192g/t silver, 4.55m at 5.64g/t gold and 325g/t silver, along with 0.5m at 9.27g/t gold and 825g/t silver.
Busy drilling program for December quarter
Mithril’s quarterly reports the La Soledad drilling confirmed the bonanza grades of that vein and intercepted additional high-grade gold and silver deeper and along strike in multiple veins.
The expanded current drilling program will run until the end of the year.
For the December quarter, the rig will be move to target four, Los Pinos, for the prospect’s first-ever drill holes, then a further 500m to target five, the multi-level historic Los Reyes mine.
In late November, Mithril will be drilling at La Constancia, where extensive historic sampling has identified a “significant” target.
Two holes are then planned for the historic San Manuel workings.