- 01Target 1 MRE: 615koz AuEq; Indicated 464k; Inferred 151k
- 0275% in Ind.; 196% higher vs prior
- 03Underground shapes; dilution included; mining-ready
Mithril Silver and Gold (ASX: MTH) has upgraded the mineral resource estimate (MRE) for Target 1 at its flagship Copalquin silver-gold project in Durango State, Mexico.
The constrained and diluted estimate now totals 615,000 ounces gold equivalent (AuEq), with 464,000oz AuEq in the higher-confidence Indicated category and 151,000oz AuEq in the Inferred category.
The Indicated component comprises 3.391 million tonnes at 3.15 grams per tonne gold and 77.8g/t silver for 343,000oz gold and 8.479Moz silver.
The Inferred component comprises 1.436Mt at 2.23g/t gold and 73.6g/t silver for 103,000oz gold and 3.398Moz silver.
Mithril confirmed about 75% of the combined AuEq resource now sits in the Indicated category, representing a 196% increase in higher-confidence gold and silver compared with the previous MRE.
Mining Shapes Lift Confidence
Mithril has constrained the updated estimate within preliminary underground mining shapes and incorporated expected mining dilution.
The company considers the approach a more practical basis for future engineering and economic work than a purely geological estimate.
The MRE uses a base case of US$3,300/oz gold and US$50/oz silver, with metallurgical recoveries of 96% for gold and 91% for silver.
Mithril generated the estimate from about 60,568 metres of diamond drilling across 204 holes, including 127 holes completed since the previous resource estimate.
Resource Model Progress
Target 1 comprises the El Refugio and La Soledad areas within the broader Copalquin district.
El Refugio accounts for the majority of the current estimate and hosts 365,000oz AuEq in the Indicated category and 131,000oz AuEq in the Inferred category.
La Soledad contributes 100,000oz AuEq in the Indicated category and 21,000oz AuEq in the Inferred category.
Mithril’s plan-view and cross-section models show the mineable shapes used to constrain the block model across both areas and exclude mineralised blocks outside those shapes from the reported resource.
The company reported an overall Target 1 discovery cost of less than US$20/oz AuEq from drilling completed to date.
Directly Applicable Resource
Managing director and chief executive officer John Skeet said the upgrade represented more than an increase in contained metal.
“We now have a resource where three-quarters of the contained metal sits in the higher-confidence Indicated category, constrained within practical underground mining shapes and incorporating expected mining dilution,” he said.
“That gives us a resource that is directly applicable to mine planning rather than simply a geological inventory.”
“Combined with a discovery cost of less than US$20 per gold equivalent ounce and an underlying predictive geological model that continues to identify new mineralisation, we believe Target 1 has become one of the highest-quality pre-development underground gold-silver resources in Mexico.”
Broader District Pipeline
Mithril continues to treat Target 1 as one of several mineralised centres within the 70 sq km Copalquin district.
The district lies within Mexico’s Sierra Madre gold-silver trend and contains several dozen historical silver and gold mines and workings.
Mithril currently has two drill rigs active, with one following up the Target 5 area and another testing priority structural targets.
The company is fully funded for a further 12,000m of drilling through the remainder of 2026, with work aimed at progressing Target 5 toward an initial resource, expanding Target 1, and advancing the district geological model.
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