Recent drill results from Mithril Silver and Gold's (ASX: MTH, TSXV: MSG) La Soledad target have revealed exceptional high-grade gold and silver intercepts, reinforcing the company's position in Mexico's prolific Sierra Madre Gold-Silver Trend.
Impressive Drill Results Highlight Resource Expansion Potential
The latest batch of drill results from La Soledad in the Target 1 resource area has produced multiple high-grade intercepts that exceed the average grades in the company's existing mineral resource estimate. The standout intercept comes from drill hole MTH-LS25-16, which returned 3.35m @ 26.5 g/t gold and 1,046 g/t silver from 215.15m depth.
Other notable results include:
- 5.00m @ 5.08 g/t gold, 22.1 g/t silver from 108.06m (MTH-LS25-14)
- 3.62m @ 9.62 g/t gold, 55.2 g/t silver from 97.7m (MTH-LS25-13)
- 1.99m @ 4.29 g/t gold, 72.6 g/t silver from 98.26m (MTH-LS25-12)
These intercepts are part of Mithril's ongoing resource expansion programme at Target 1, with additional drilling scheduled at El Refugio and Refugio West to further enhance the resource base.
John Skeet, Mithril's Managing Director and CEO, commented on the results: "Drilling at La Soledad in the Target 1 resource area continues to intercept multiple high-grade silver-gold veins with grades higher than the average Target 1 mineral resource estimate published in November 2021."
Aggressive Exploration Strategy Underway
Mithril is executing a two-pronged exploration strategy across the expansive 70km² Copalquin District. Currently, one drill rig is focused on the Target 1 resource area, with plans to complete this phase by the end of Q1 2025.
Starting in April 2025, a second drill rig will begin testing the highly prospective Target 2 area at El Peru/Las Brujas, marking the first-ever drilling in this zone. The company has identified a breccia pipe at El Peru through LiDAR interpretation, alongside extensive historic surface workings.
In total, Mithril plans to complete an ambitious 35,000 meters of drilling throughout 2025, targeting multiple areas across the district to demonstrate Copalquin's potential as a major high-grade silver and gold district in Mexico's famed Sierra Madre Trend.
Understanding Epithermal Gold-Silver Systems
The Copalquin project hosts a classic low-sulfidation epithermal gold-silver system, a deposit type common throughout Mexico's Sierra Madre Occidental. These systems are characterised by quartz veins and stockworks surrounded by haloes of argillic alteration.
Low-sulfidation epithermal deposits form in volcanic terrains, typically at shallow depths of less than 1,500 metres below the surface. They develop from hydrothermal fluids with low acidity and salinity, which results in distinctive mineral assemblages and textures. These deposits are notable for their potential to host high-grade precious metal concentrations, making them attractive exploration targets.
At Copalquin, veins have formed as both low-angle semi-continuous lenses parallel to the contact between granodiorite and andesite, and as tabular veins in high-angle normal faults. Vein and breccia thickness ranges up to 30 meters, with average widths of 3 to 5 meters.
The mineralised zone strikes over an impressive distance of nearly 6 kilometers from El Gallo to Constancia, with additional exploration potential extending another 5 kilometers to the south through Apomal, San Manuel, and Las Brujas-El Peru.
Key characteristics of these epithermal deposits include:
- Mineral Assemblages: Typically contain gold, silver, electrum, argentite, and base-metal sulfides
- Host Rocks: Usually found in volcanic rocks, particularly andesite and rhyolite
- Vein Textures: Often display distinctive banded, crustiform, and colloform textures
- Alteration Patterns: Show concentric zones of alteration surrounding veins
- Depth of Formation: Generally form within 1 km of the paleosurface
Epithermal deposits are generally categorised based on their sulfide content, with low-sulfidation systems typically producing higher-grade gold and silver ores compared to high-sulfidation systems.
Established Resource Base with Growth Potential
Mithril's maiden JORC mineral resource estimate, announced in November 2021, stands at 2.4 million tonnes grading 4.80 g/t gold and 141 g/t silver for a total of 529,000 ounces gold equivalent at an impressive grade of 6.81 g/t gold equivalent.
The resource is distributed between two deposits:
- El Refugio: 2.14 million tonnes at 4.88 g/t gold and 129.7 g/t silver
- La Soledad: 278,000 tonnes at 4.12 g/t gold and 228.2 g/t silver
Approximately 28.6% of the resource tonnage is classified in the higher-confidence Indicated category, with the remainder in the Inferred category.
The current drilling programme aims to expand this resource base, with the high-grade intercepts reported at La Soledad suggesting significant potential for resource growth both laterally and at depth.
Strong Technical Foundation for Development
Mithril has already completed preliminary metallurgical test work on the El Refugio resource, demonstrating excellent recoveries of 96% for gold and 91% for silver using conventional processing methods. These high recovery rates suggest that future production from Copalquin could be technically straightforward, with standard processing techniques applicable.
Additionally, a conceptual underground mining study has confirmed the viability of developing the resource. This early-stage technical work provides a solid foundation for future development planning, reducing some of the technical risks associated with advancing the project.
The company has an exclusive option to purchase 100% interest in the Copalquin mining concessions by paying US$10 million on or before August 7, 2028, providing a clear pathway to full ownership.
Why Investors Should Follow Mithril
Mithril presents a compelling investment case for several key reasons:
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High-Grade Resource Base: The existing resource grade of 6.81 g/t gold equivalent places Copalquin among the highest-grade undeveloped gold-silver projects globally.
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Significant Exploration Upside: With only a small portion of the 70km² district tested to date, and 100 historic underground mines and 198 surface workings identified, the potential for resource growth is substantial.
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Strategic Location: Situated in the prolific Sierra Madre Gold-Silver Trend of Mexico, home to numerous world-class precious metal deposits.
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Systematic Exploration Approach: The company is methodically testing multiple target areas across the district, with a clear focus on resource expansion.
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Technical Foundation: Metallurgical test work and preliminary mining studies provide a solid technical foundation for future development.
With an ambitious drilling programme underway and multiple high-priority targets to test, Mithril is well-positioned to demonstrate that Copalquin represents a major high-grade silver and gold district in Mexico's famed Sierra Madre Trend.
The company's systematic approach to exploration, focusing first on expanding the known resource at Target 1 before testing new areas like Target 2, provides a balanced strategy that may deliver both near-term resource growth and longer-term district-scale potential.
As results continue to come in from the extensive 2025 drilling programme, investors should monitor Mithril closely for further evidence of Copalquin's emerging status as a significant precious metals district.
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