- 01Indicated MRE +196%; 343koz Au, 8.48Moz Ag.
- 02~75% of resource Indicated; underground shapes with dilution.
- 03A$7.3m cash; debt-free; funded 2026 drilling; 2 rigs.
Mithril Silver and Gold (ASX: MTH) has upgraded the Target 1 mineral resource estimate (MRE) at its Copalquin project in Mexico, lifting higher-confidence Indicated gold and silver content by 196% while continuing exploration across the wider district.
The constrained and diluted indicated MRE now contains 343,000 ounces of gold and 8.479Moz silver, or 464,000oz gold equivalent (AuEq), with a further 151,000oz AuEq classified as Inferred.
About 75% of the total gold and silver is now in the Indicated category, with the resource constrained inside preliminary underground mining shapes and adjusted for expected dilution to support future engineering and economic work.
Mithril finished June with A$7.3 million cash, is debt free, and has fully funded the remaining 12,000m of its 2026 drilling program.
Mine Planning Imminent
The Indicated MRE comprises 3.391 million tonnes grading 3.15 grams per tonne gold and 77.8g/t silver, while the Inferred component totals 1.436Mt at 2.23g/t gold and 73.6g/t silver.
The estimate, which incorporates about 60,568m from 204 diamond drill holes, was generated using underground shapes based on long hole open stoping, with average mining widths of about 4m and internal dilution included.
“The upgraded MRE moves the deposit beyond a purely geological inventory by constraining the resource within preliminary underground mining shapes and incorporating dilution,” chief executive officer John Skeet said.
“This provides a more practical foundation for mine planning, engineering, and economic evaluation.”
District Targets Deliver High Grades
Initial 2026 drilling at Target 3 tested 700m of strike across a 1.2km by 1.2km area and confirmed extensive epithermal gold-silver mineralisation around the Jabali, Guadalupe, Constancia, and El Maizon workings.
Standout results included 0.5m at 33.2g/t gold and 5.9g/t silver at Guadalupe, alongside 0.5m at 6.91g/t gold and 475g/t silver at Jabali, where vein continuity has been confirmed over at least 230m and remains open.
At Target 5, the first La Maquina drill hole intersected 0.85m at 6.20g/t gold and 764g/t silver 68m down dip from a newly mapped surface vein, extending the known mineralised system in an area without recorded historical workings.
Final pre-MRE drilling at Target 1 also returned broad high-grade intersections west of El Refugio, including 9.65m at 7.00g/t gold and 370.3g/t silver, with the structure remaining open at depth beyond a post-mineral dyke system.
Two Rigs to Drive Next Phase
Two drill rigs are active at Copalquin and will test extensions west and northwest of Target 1, follow mineralisation along strike from the historical Copalquin mine workings, and target deeper district-scale structures.
Mithril will also drill deeper at Target 3, progress economic assessment and de-risking work for Target 1, and advance initial drilling plans and permitting for the nearby La Dura property.
Exploration expenditure totalled A$3.4m during the quarter, while Mexican value added tax refunds contributed about A$940,000.
The company retains an option to acquire the remaining 50% of Copalquin for US$10m before 7 August 2028.
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