Mithril Doubles Down on High-Grade Mexican Silver-Gold Project
Mithril Silver and Gold Limited (ASX: MTH, TSXV: MSG) has unveiled exceptionally high-grade channel sampling results from its Target 2 area whilst simultaneously accelerating its ambitious 35,000-metre drill programme across the Copalquin silver and gold district in Mexico.
Exceptional Channel Samples Light Up Target 2
The company's latest exploration efforts at Target 2 (El Peru/Las Brujas area) have yielded remarkable results, with channel samples containing bonanza-grade precious metals including:
- 31.8 g/t gold and 233 g/t silver over 1 metre
- 26.8 g/t gold and 1,004 g/t silver over 2 metres
- 21.5 g/t gold and 337 g/t silver over 1 metre
These surface sampling results are particularly significant as they come from the company's second priority target area, where a second drill rig has now commenced operations as part of Mithril's comprehensive 35,000-metre "district defining" drill programme for 2025.
Target 1 Resource Expansion Continues to Deliver
Whilst launching operations at Target 2, Mithril continues to expand its established resource at Target 1 (El Refugio-La Soledad), with recent high-grade intercepts including:
- 2.90m @ 9.06 g/t gold and 10.6 g/t silver from 339.6m, including
- 0.50m @ 44.7 g/t gold and 42.7 g/t silver from 342m
This intercept successfully extended the known mineralisation 120 metres down-dip on the eastern side of the main structure, demonstrating significant expansion potential at depth.
Understanding Epithermal Gold-Silver Systems
Copalquin represents a classic low-sulphidation epithermal gold-silver system, a deposit type common throughout Mexico's Sierra Madre Occidental region. These systems typically form when hot, mineral-rich fluids rise through fractures in volcanic rocks, cooling and depositing precious metals in veins and breccias.
The significance for investors is that epithermal systems often create concentrated zones of high-grade mineralisation within broader mineralised envelopes. At Copalquin, these veins and breccias range from 3-5 metres in thickness on average, with exceptional zones reaching up to 30 metres wide. The district's strike length stretches nearly 6 kilometres from El Gallo to Constancia, with additional exploration potential extending another 5 kilometres southward.
Accelerated Timeline and Next Steps
Mithril has accelerated its resource expansion efforts, extending the Target 1 resource drilling cut-off to late May 2025. This extension follows successful intercepts from deep drilling (>500 metres) on the eastern side of the resource area.
The company's immediate focus includes:
- Continued deep drilling at Target 1 to expand the established resource
- Systematic drilling at Target 2 around the historic workings at Las Brujas and El Peru
- Progressive expansion into adjacent areas of significant historic mining activity
Investment Thesis: District-Scale Potential
Mithril Silver and Gold high-grade drilling results have positioned the Copalquin project to stand out for several compelling reasons:
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Established High-Grade Resource: The project already hosts a maiden JORC resource of 373,000 oz gold plus 10,953,000 oz silver at impressive grades of 4.80 g/t gold and 141 g/t silver.
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District-Scale Opportunity: With 100 historic underground mines across 70km² of concessions, Copalquin represents an entire mining district with multiple development targets.
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Infrastructure Advantages: The project benefits from favourable location with proximity to roads, power, and water.
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Metallurgical Success: Initial test work has demonstrated excellent recoveries of 96% for gold and 91% for silver, suggesting conventional processing methods will be effective.
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Mining Study Support: A conceptual underground mining study has already validated the development potential of the maiden resource through thorough mining feasibility studies.
Why Investors Should Follow Mithril
Mithril offers investors exposure to a rapidly advancing precious metals story with multiple catalysts ahead. The company's two-pronged approach—expanding the established resource whilst simultaneously proving up additional targets—creates multiple opportunities for value creation.
The bonanza grades being encountered at Target 2 suggest the company may be on track to demonstrate that Copalquin is indeed another significant gold-silver district within Mexico's prolific Sierra Madre Gold-Silver Trend. Furthermore, for those navigating junior mining investments, Mithril presents an intriguing case study in resource development strategy.
With an exclusive option to purchase 100% interest in the Copalquin mining concessions (recently extended to August 2028), Mithril has secured a clear path to full ownership of what appears to be developing into a significant precious metals district with multi-million-ounce potential.
Technical Analysis of Mithril's Exploration Approach
Mithril Silver and Gold high-grade drilling results at Copalquin demonstrate a methodical approach to district-scale exploration. The company is employing a systematic strategy that follows established protocols for epithermal deposit exploration:
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Surface Sampling and Mapping: The high-grade channel samples from Target 2 represent the initial phase of exploration, identifying areas of interest for follow-up drilling.
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Targeted Drilling: The company has strategically placed drill holes to test extensions of known mineralisation, particularly focusing on down-dip extensions at Target 1.
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Multi-Target Development: By simultaneously advancing both Target 1 and Target 2, Mithril is efficiently establishing the overall potential of the district.
The recent successful interception of the El Refugio structure 120 metres down-dip on the eastern side (returning 2.90m @ 9.06 g/t gold and 10.6 g/t silver) demonstrates the efficacy of the company's geological modeling. This suggests that the resource expansion potential remains robust, particularly at depth.
Historic Context and Future Potential
The Copalquin District contains approximately 100 historic underground mining operations, suggesting extensive mineralisation throughout the concession area. Similar to exploring Alaska's Ambler district, Mithril's approach of focusing on areas with known historic workings provides a high-probability pathway to success.
The Las Brujas and El Peru areas (Target 2) represent the next logical step in the company's district-wide exploration programme. The bonanza grades returned from channel sampling in these areas are consistent with the high-grade nature of the established resource at Target 1, suggesting similar mineralisation styles across the district.
As Mithril Silver and Gold high-grade drilling results continue to demonstrate the potential of the Copalquin District, investors should monitor several key metrics:
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Resource Growth Rate: How quickly the company can expand its current resource through the ongoing drill programme.
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New Discovery Timeline: The speed at which Target 2 and subsequent targets can be advanced from initial exploration to defined resources.
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Metallurgical Consistency: Whether future test work continues to demonstrate the excellent gold and silver recoveries seen in initial testing.
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Development Pathway: The emerging timeline for potential project development decisions based on resource growth, similar to considerations in uranium deposits and mining.
With the exclusive option to purchase now extended to August 2028, Mithril has secured additional time to fully evaluate and develop the Copalquin District, potentially allowing for a more comprehensive understanding of the district's overall potential before a final acquisition decision is required.
The convergence of high-grade mineralisation, district-scale potential, and a methodical exploration approach positions Mithril Silver and Gold high-grade drilling results as a compelling narrative in the junior precious metals sector for 2025 and beyond.
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