- 01Target 4 strike extended to 700m.
- 02Drilling hit 855g/t silver and 2.76g/t gold over 1.15m.
- 03San Manuel samples reached 16.55g/t gold; 8 assays pending.
Mithril Silver and Gold (ASX: MTH) has extended high-grade silver and gold mineralisation along the Copalquin-Zaragoza structure at its Target 4 prospect in Mexico to 700 metres of strike.
The latest drilling increased the defined mineralised strike from 550m across two sub-parallel veins, with further step-out work underway and eight drill hole assays pending.
One standout intersection returned 1.15m grading 855 grams per tonne silver and 2.76g/t gold, equivalent to 1,048g/t silver on the company’s metal-price and recovery assumptions.
Channel sampling around the historical San Manuel mine, approximately 400m southeast along the interpreted trend, has returned grades as high as 16.55g/t gold and 616g/t silver across 0.6m.
Vein Corridor Drilling
The new results link mineralisation between the Copalquin and Zaragoza workings across a series of post-mineral dykes, strengthening the interpretation of a semi-continuous structure.
Drilling identified a second high-grade interval of 2.65m grading 305.6g/t silver and 1.50g/t gold, while another southeast step-out returned 0.50m grading 1,520g/t silver and 3.11g/t gold.
The two veins lie approximately 10m to 15m apart, and Mithril continues to test their extensions in lateral steps of about 60m.
Other holes intersected post-mineral dykes or weaker mineralisation, providing information for refining the structural interpretation.
San Manuel Sampling
At San Manuel, mapping has covered another 80 hectares around the district’s second-largest historical underground mine, where more than 50 of 135 channel samples exceeded 1g/t gold equivalent.
Surface results included 10.4g/t gold and 422g/t silver over 0.8m at Mina Larga, while underground sampling at Mina Hijo returned up to 11.2g/t gold and 402g/t silver over 0.5m.
The channel results indicate gold-rich mineralisation in higher parts of the system, contrasting with the silver-rich veins currently being drilled at Copalquin-Zaragoza.
The projected structure remains untested for about 400m northwest towards the Target 1 Refugio area and another 400m southeast towards San Manuel, leaving a potential 1.5-kilometre (km) corridor for investigation.
Resource Growth Work
Mithril has drilled 24,181m of its budgeted 25,000m Copalquin program for 2026, with two rigs operating and further assays to inform the next targets.
Target 1 already hosts an indicated mineral resource estimate of 464,000 ounces of gold equivalent and an inferred MRE of 151,000oz, based on mining-shape-constrained estimates that include expected dilution.
A scoping study and preliminary economic assessment for Target 1 are underway with completion targeted for early 2027, while the company continues to investigate connections between the established resource and Target 4.
“We’re focused on unlocking the potential between these targets while advancing the Target 1 scoping study,” chief executive officer John Skeet said.
Get the wire before the market opens.
The ASX small-cap stories that matter, filed before 9am AEST. Curated by the Small Caps desk.