Mithril Silver and Gold Targeting High-Grade Expansion in Mexico’s Sierra Madre

Mithril Silver and Gold (ASX: MTH) is advancing exploration and resource development across its flagship Copalquin gold-silver district, located in Durango, Mexico.

 Dual-listed on the TSX Venture Exchange, the company is executing a systematic exploration strategy focused on high-grade epithermal gold and silver systems.

 As macroeconomic interest in precious metals remains active globally, Mithril is seeking to expand its mineral footprint through continuous drilling across several priority targets within its 70 square kilometre concession area.

Company Background and Strategy

Mithril Silver and Gold is a mineral exploration company focused on precious metals discoveries in prolific mining jurisdictions.

The company’s core strategy centres on testing district-scale geological structures using modern exploration techniques, including diamond drilling and high-resolution LiDAR mapping.

Rather than focusing on isolated vein systems, Mithril is targeting a broader district-scale framework across the Copalquin system.

The strategy aims to outline shallow, high-grade resources that could support mechanised underground development models, supported by ongoing field mapping, channel sampling, and metallurgical testing.

Primary Copalquin Asset Focus

The foundation of Mithril’s operational activity is the Copalquin Gold-Silver Project, situated in the Sierra Madre Occidental trend in Durango, Mexico.

The region is widely recognised for hosting extensive high-grade epithermal gold and silver deposits.

Key parameters for the Copalquin district include:

• Target 1 Resource: The company reported an upgraded JORC-compliant Mineral Resource Estimate for Target 1 comprising 464,000 oz AuEq in the Indicated category (343 koz Au and 8.48 Moz Ag) and 151,000 oz AuEq in the Inferred category (103 koz Au and 3.34 Moz Ag).
• Resource Confidence: According to company filings, the updated Target 1 resource reflects a 75% Indicated classification, de-risked using underground mine stope shape constraints.
• Metallurgical Recoveries: Initial test work on composite samples demonstrated metallurgical recoveries of 96% for gold and 91% for silver.
• Regional Exploration: LiDAR surveys and field programs have identified over 13 distinct target areas across the 70 km² concession, with recent maiden drilling programs testing regional targets including Target 2, Target 3, and Target 5.

Recent Filings and Exploration Updates

Mithril has delivered a range of technical disclosures and market updates outlining exploration progress:

• Resource Technical Reporting: The company lodged its updated technical report for the Target 1 Mineral Resource Estimate, detailing the mine-constrained parameters and underlying geologic assumptions.
• District Drill Programs: Exploration announcements highlighted ongoing multi-rig diamond drilling, with recent intercept results extending historical structures at Target 1 and discovering high-grade mineralisation at outer targets.
• Financial Position: In its recent quarterly reporting (Appendix 5B), the company reported maintained cash reserves allocated toward ongoing diamond drilling, geological studies, and site logistics in Durango.

Macro Precious Metals and Exploration Trends

The market backdrop for gold and silver exploration continues to be influenced by global economic and supply-chain factors:

• Precious Metals Demand: Central bank buying, currency hedging, and industrial silver applications in electronics and renewable technology continue to support broader sector interest in gold and silver equities.
• Jurisdictional Advantage: Prolific mining belts, such as Mexico's Sierra Madre trend, remain major focal points for precious metals explorers due to established regional infrastructure and historical production credentials.
• High-Grade Focus: Underground, high-grade vein deposits are increasingly sought after by developers seeking lower surface disturbance footprints and favorable processing economics.

Conclusion

Mithril Silver and Gold is advancing its Copalquin project from early-stage discovery toward structured resource growth.

With an upgraded resource foundation at Target 1 and active regional exploration across secondary targets, the company continues to evaluate the broader district potential.

Market participants will follow upcoming drill results, resource expansion updates, and ongoing technical evaluations across the Durango concession.