- 01Target 4 shows silver-gold over 550m; extensions remain open.
- 02Target 1 PEA underway, due early 2027.
- 03Funded 25,000m drilling program continues.
Mithril Silver and Gold (ASX: MTH) has identified Target 4 as a potential second resource area at its Copalquin silver-gold project in Mexico following a September quarter of exploration.
First systematic drilling along the Copalquin-Zaragoza structure confirmed mineralisation across 550 metres of strike and 200m vertically, with extensions remaining untested in both directions.
The results have added another development prospect alongside Target 1, where Mithril has started a scoping study and preliminary economic assessment (PEA) based on an upgraded mineral resource estimate.
The company is completing its funded 25,000m drilling program while advancing permitting and planning further exploration across Copalquin and its nearby La Dura property.
New Mineralised Corridor
Three holes at Target 4 intersected broad zones of silver-gold mineralisation, including 11.70m grading 381 grams per tonne silver and 1.06g/t gold from 22m.
A second intercept returned 13.95m at 264g/t silver and 1.76g/t gold, while a third delivered 6.50m at 305g/t silver and 0.22g/t gold.
The Copalquin-Zaragoza structure remains open along roughly 400m towards El Refugio and 600m towards the historical San Manuel mine.
Mithril used a revised interpretation of post-mineral dykes developed at Target 1 to connect mineralised structures previously considered separate.
With two rigs focused on the area and assays pending, Target 4 remains an exploration prospect rather than an established mineral resource.
Target 1 Development Study
The Target 1 MRE contains 3.391 million tonnes of Indicated material grading 3.15g/t gold and 77.8g/t silver, alongside 1.436Mt of Inferred material grading 2.23g/t gold and 73.6g/t silver.
Approximately 75% of its contained gold and silver is in the Indicated category, with the PEA targeted for early 2027 to assess the potential economics of an underground development while associated permitting work continues.
“The PEA is the key next step in demonstrating the economic potential of a high-grade underground silver-gold development at the first target area in the Copalquin district with results for early 2027,” managing director John Skeet said.
“Two drills have been focused on Target 4 as we complete the fully funded 25,000 m 2026 program, [and] La Dura, Targets 3 and 5, and Cucaracha are lined up for drilling in 2027 in addition to ongoing Target 4 resource drilling, giving Mithril a strong pipeline of news flow and catalysts over the coming months."
Mithril is separately preparing to drill La Dura in early 2027, after surveying identified a mineralised corridor extending about 1.5km across that property.
Further Targets And Funding
At La Maquina within Target 5, follow-up drilling extended the high-grade discovery 150m northwest, returning a narrow 0.50m interval grading 12.20g/t gold and 848g/t silver.
Additional drilling at La Soledad in Target 1 intersected 13.45m at 1.55g/t gold and 16.6g/t silver, while western testing identified structure without reportable grades.
The company closed September with $4.1 million in cash and no debt after spending $2.58m on exploration during the quarter.
Its quarterly cash flow calculation indicated 1.32 quarters of funding at the reported expenditure rate, with Mithril expecting lower expenditure after completing the 2026 drilling program.
Management expects to draw on existing cash and potential future debt or equity raisings to fund its further work at Targets 3 and 5 and Cucaracha in 2027.
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