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Target 1 Expansion Assays Up To 438 G/T Silver, 7.88 G/T Gold



Mithril Silver and Gold Limited

January 22, 2025 – TheNewswire - Drilling of shallow mineralisation on the eastern side of the Target 1 resource area has successfully intercepted excellent grades and widths as the Target 1 resource update drilling progresses.

HIGHLIGHTS

Highlight results for the drilling completed late 2024:

  • 7.37m @ 4.16 g/t gold, 69.5 g/t silver, from 42m (MTH-EC24-01), including 

    • 4.00m @ 6.60 g/t gold, 48.9g/t silver, from 42m, 

  • 0.75m @ 2.53 g/t gold, 59.8 g/t silver, from 2.25m 

 

  • 13.90m @ 0.71 g/t gold, 34.6 g/t silver, from 1.50m (MTH-EC24-04), including 

    • 1.00m @ 4.15 g/t gold, 195 g/t silver from 12.0m 

  • 7.10m @ 1.87 g/t gold, 91.6 g/t silver from 163.9m, including 

    • 1.00m @ 7.88 g/t gold, 438 g/t silver from 170m 

 

  • 6.30m @ 1.08 g/t gold, 35.2 g/t silver, from 17.2m (CDH-167), including 

    • 0.80m @ 4.61 g/t gold, 109 g/t silver, from 17.2m 

Drilling of the shallow mineralisation at El Cometa plus two further holes completed this month, completes the drilling with solid results in this highly accessible part of the Target 1 resource area ahead of the resource update.

  • This month, two drill holes have been completed at La Soledad, with further drilling ongoing, following up high-grade intercepts from Mithril’s 2020-21 drilling in this area, then moving to Refugio West, ahead of the Target 1 resource update 

 

  • The addition of a second drill is on schedule with the municipal access road upgrade for completion late March, allowing 35,000m of additional core drilling in the district throughout 2025, advancing the next two target areas and developing the large district geologic model 

Mithril Silver and Gold Limited (“Mithril” or “the Company”) (MTH:ASX, MSG:TSXV) announces drill results for the Target 1 resource expansion programme at its Copalquin District project, Mexico.

 

John Skeet, Mithril’s Managing Director and CEO commented:

“Drilling on the eastern side of the resource update area at El Cometa has returned excellent near surface intercepts testing various structural orientations in this complex and highly prospective part of the Target 1 area.  The El Cometa area has produced exceptionally high-grade intercepts crosscutting the broader, well mineralised zone.  Importantly, these recent results support our interpretations in this area as part of the Target 1 resource update drilling.  Drilling recommenced early this month with the drill currently at La Soledad, commencing the fifth hole for 2025, following up the high-grade mineralisation intercepted in 2020-21 within the Target 1 resource area.  2025 is a pivotal year for the Copalquin District with our Target 1 resource update, fully funded exploration program (with 35,000m of drilling), drilling at the next two exciting target areas, access road upgrade and expansive field work program, establishing Copalquin as the next of the many world-class gold-silver districts in Mexico’s prolific Sierra Madre Gold-Silver Trend”.

 

COPALQUIN GOLD-SILVER DISTRICT, MEXICO

With 100 historic underground gold-silver mines and workings plus 198 surface workings/pits throughout 70km2 of mining concession area, Copalquin is an entire mining district with high-grade exploration results and a maiden JORC resource. To date there are several target areas in the district with one already hosting a high-grade gold-silver JORC resource at El Refugio (529koz AuEq @6.81 g/t AuEq)1supported by a conceptional underground mining study completed on the maiden resource in early 2022 (see ASX announcement 01 March 2022 and metallurgical test work (see ASX Announcement 25 February 2022). There is considerable strike and depth potential to increase the resource at El Refugio and at other target areas across the district, plus the underlying geologic system that is responsible for the widespread gold-silver mineralisation.

With the district-wide gold and silver occurrences and rapid exploration success, it is clear the Copalquin District is developing into another significant gold-silver district like the many other districts in this prolific Sierra Madre Gold-Silver Trend of Mexico.

Drilling is in progress at the Target 1 drill area where the current maiden resource drilling is scheduled to be completed by end of Q1 2025. Channel sampling work, using a diamond rock saw, has continued adjacent to the Target 1 area and immediately to the south towards the Copalquin creek, as highlighted below in Figure 1. Drilling is planned to commence with the second drill rig at the Target 2 area by April 2025.

 


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Figure 1 LiDAR hill shade image with the historic workings identified across the district and 2020-2022 highlight channel sample results.  Target 1 area current drilling location, channel sampling area and the high priority drill target areas of Las Brujas-El Peru and La Constancia-El Jabali.  Several new areas highlighted across the district for follow-up work.

  

Drill Results Discussion

 

Recent drilling successfully intercepted shallow mineralisation in the El Cometa area on the eastern side of the Target 1 resource area with multiple intercepts, adding, to the data for the upcoming resource update.  The near surface (<100m down hole) cut-off for reporting the intercepts in the El Cometa area is lower (0.25 g/t AuEq2 compared with 1.00 g/t AuEq2 for >100m down hole intercept reporting) reflecting its potential for lower cost mining methods.

Two further drill holes have been completed in this area this month and the drill is currently on its third hole at La Soledad, all within the Target 1 resource update area.  Drilling within the Target 1 area is continuing throughout the quarter, ahead of the Target 1 resource update.

El Cometa features a broad mineralised structure with cross cutting structures hosting very high-grade gold and silver, such as reported from drill hole CDH-159 in 2024 (33.00m @31.8 g/t gold, 274 g/t silver from surface)

Each of the drill holes returned reportable shallow intercepts. Drill hole MTH-EC24-04 intercepted further deeper mineralisation at 160.3m down hole with 7.10m @ 1.87 g/t gold, 91.6 g/t silver, including 1.00m @ 7.88 g/t gold, 438 g/t silver from 170m down hole.  Drill intercepts are provided below.

 

  • 7.37m @ 4.16 g/t gold, 69.5 g/t silver, from 42m (MTH-EC24-01), including 

    • 4.00m @ 6.60 g/t gold, 48.9g/t silver, from 42m, 

  • 0.75m @ 2.53 g/t gold, 59.8 g/t silver, from 2.25m 

 

  • 7.65m @ 0.23 g/t gold, 9.04 g/t silver, from 3.00m (MTH-EC24-02) 

 

  • 2.00m @ 0.63 g/t gold, 60.8 g/t silver, from 48.0m (MTH-EC24-03), including 

    • 0.50m @ 2.04 g/t gold, 197 g/t silver from 48.0m 

  • 5.00m @ 0.53 g/t gold, 29.4 g/t silver, from 84.0m 

  • 13.90m @ 0.71 g/t gold, 34.6 g/t silver, from 1.50m (MTH-EC24-04), including 

    • 1.00m @ 4.15 g/t gold, 195 g/t silver from 12.0m 

  • 7.10m @ 1.87 g/t gold, 91.6 g/t silver from 163.9m, including 

    • 1.00m @ 7.88 g/t gold, 438 g/t silver from 170m 

 

  • 0.80m @ 5.84 g/t gold, 233 g/t silver, from 109.3m (MTH-EC24-05) 

 

  • 2.00m @ 0.02 g/t gold, 75.2 g/t silver, from 11.0m (CDH-167), 

  • 6.30m @ 1.08 g/t gold, 35.2 g/t silver, from 17.2m, including 

    • 0.80m @ 4.61 g/t gold, 109 g/t silver, from 17.2m 

Two further drill holes have been completed in the El Cometa area with drilling now in progress at the La Soledad area.  Further Target 1 resource drilling is scheduled for Refugio West.  Drill samples to-date are scheduled for shipment this week, and this will be ongoing throughout the year increasing with the addition of a second drill.


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Figure 2 Central area (6 km2) of the 70km2 district mining concession area showing the locations of the recent and current drilling activity.

ABOUT THE COPALQUIN GOLD SILVER PROJECT

The Copalquin mining district is located in Durango State, Mexico and covers an entire mining district of 70km2 containing several dozen historic gold and silver mines and workings, ten of which had notable production. The district is within the Sierra Madre Gold Silver Trend which extends north-south along the western side of Mexico and hosts many world-class gold and silver deposits.

 

Multiple mineralisation events, young intrusives thought to be system-driving heat sources, widespread alteration together with extensive surface vein exposures and dozens of historic mine workings, identify the Copalquin mining district as a major epithermal centre for Gold and Silver.

 

Within 15 months of drilling in the Copalquin District, Mithril delivered a maiden JORC mineral resource estimate demonstrating the high-grade gold and silver resource potential for the district. This maiden resource is detailed below (see ASX release 17 November 2021)^ and NI43-101 Technical Report filed on SEDAR+

 

  • 2,416,000 tonnes4.80 g/t gold, 141 g/t silver for 373,000 oz gold plus 10,953,000 oz silver (Total 529,000 oz AuEq*) using a cut-off grade of 2.0 g/t AuEq* 

  • 28.6% of the resource tonnage is classified as indicated 

 
 

Tonnes

(kt)

Tonnes

(kt)

Gold

(g/t)

Silver

(g/t)

Gold Eq.* (g/t)

Gold

(koz)

Silver

(koz)

Gold Eq.* (koz)

El Refugio

Indicated

691

5.43

114.2

7.06

121

2,538

157

 

Inferred

1,447

4.63

137.1

6.59

215

6,377

307

La Soledad

Indicated

-

-

-

-

-

-

-

 

Inferred

278

4.12

228.2

7.38

37

2,037

66

Total

Indicated

691

5.43

114.2

7.06

121

2,538

157

 

Inferred

1,725

4.55

151.7

6.72

252

8,414

372

 

TOTAL

2,416

4.80

141

6.81

373

10,953

529

Table 1 - Mineral resource estimate El Refugio – La Soledad using a cut-off grade of 2.0 g/t AuEq*

*  The gold equivalent (AuEq.) values are determined from gold and silver values and assume the following:  AuEq. = gold equivalent calculated using and gold:silver price ratio of 70:1.  That is, 70 g/t silver = 1 g/t gold.  The metal prices used to determine the 70:1 ratio are the cumulative average prices for 2021: gold USD1,798.34 and silver: USD25.32 (actual is 71:1) from kitco.com.  Metallurgical recoveries are assumed to be approximately equal for both gold and silver at this early stage. Actual metallurgical recoveries from test work to date are 96% and 91% for gold and silver, respectively.  In the Company’s opinion there is reasonable potential for both gold and silver to be extracted and sold. Actual metal prices have not been used in resource estimate, only the price ratio for the AuEq reporting. Formula for AuEq. = Au grade +((Ag grade/gold:silver price ratio) x (Ag recovery/Au recovery))

^ The information in this report that relates to Mineral Resources or Ore Reserves is based on information provided in the following ASX announcement: 17 Nov 2021 - MAIDEN JORC RESOURCE 529,000 OUNCES @ 6.81G/T (AuEq*), which includes the full JORC MRE report, also available on the Mithril Resources Limited Website.

 

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

 

Mining study and metallurgical test work supports the development of the El Refugio-La Soledad resource with conventional underground mining methods indicated as being appropriate and with high gold-silver recovery to produce metal on-site with conventional processing.

 

Mithril is currently exploring in the Copalquin District to expand the resource footprint, demonstrating its multi-million-ounce gold and silver potential.

 

Mithril has an exclusive option to purchase 100% interest in the Copalquin mining concessions by paying US$10M on or any time before 7 August 2026 (option has been extended by 3 years). Mithril has reached an agreement with the vendor for an extension of the payment date by a further 2 years (bringing the payment date to 7 August 2028).


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Figure 3 – Copalquin District location map with locations of mining and exploration activity within the state of Durango

-ENDS-

Released with the authority of the Board.

For further information contact:

John Skeet

Managing Director and CEO

jskeet@mithrilresources.com.au

+61 435 766 809

Mark Flynn

Investor Relations

mflynn@mithrilresources.com.au

+61 416 068 733

 

Competent Persons Statement - JORC

The information in this announcement that relates to metallurgical test results, mineral processing and project development and study work has been compiled by Mr John Skeet who is Mithril’s CEO and Managing Director. Mr Skeet is a Fellow of the Australasian Institute of Mining and Metallurgy. This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code.

Mr Skeet has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Skeet consents to the inclusion in this report of the matters based on information in the form and context in which it appears. The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

The information in this announcement that relates to sampling techniques and data, exploration results and geological interpretation for Mithril’s Mexican project, has been compiled by Mr Ricardo Rodriguez who is Mithril’s Project Manager. Mr Rodriguez is a Member of the Australasian Institute of Mining and Metallurgy. This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code.

 Mr Rodriguez has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Rodriguez consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

The information in this announcement that relates to Mineral Resources is reported by Mr Rodney Webster, Principal Geologist at AMC Consultants Pty Ltd (AMC), who is a Member of the Australasian Institute of Mining and Metallurgy. The report was peer reviewed by Andrew Proudman, Principal Consultant at AMC. Mr Webster is acting as the Competent Person, as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, for the reporting of the Mineral Resource estimate. A site visit was carried out by Jose Olmedo a geological consultant with AMC, in September 2021 to observe the drilling, logging, sampling and assay database. Mr Webster consents to the inclusion in this report of the matters based on information in the form and context in which it appears

The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Qualified Persons – NI 43-101

Scientific and technical information in this Report has been reviewed and approved by Mr John Skeet (FAUSIMM, CP) Mithril’s Managing Director and Chief Executive Officer. Mr John Skeet is a qualified person within the meaning of NI 43-101.

  

Table 2 Mineralised intercepts in reported drillholes above 0.1 g/t AuEq.

HOLE_ID

Sample_ID

From m

To m

Length m

Final_Au_ppm

Final_Ag_ppm

AuEq_70

AgEq_70

CDH-167

706001

0

1.5

1.5

0.047

5.2

0.12

8.49

CDH-167

706002

1.5

3

1.5

0.091

4.7

0.16

11.07

CDH-167

706003

3

4.5

1.5

0.14

7

0.24

16.8

CDH-167

706004

4.5

6

1.5

0.078

10.1

0.22

15.56

CDH-167

706005

6

7

1

0.059

13.2

0.25

17.33

CDH-167

706006

7

8

1

0.382

6.4

0.47

33.14

CDH-167

706007

8

9

1

0.043

6.1

0.13

9.11

CDH-167

706010

11

12

1

0.014

21.3

0.32

22.28

CDH-167

706011

12

13

1

0.035

129

1.88

131.45

CDH-167

706014

15

15.6

0.6

0.117

5.9

0.20

14.09

CDH-167

706018

17.2

18

0.8

4.61

109

6.17

431.7

CDH-167

706019

18

19

1

0.196

20.2

0.48

33.92

CDH-167

706020

19

20

1

0.871

26.7

1.25

87.67

CDH-167

706021

20

21

1

0.239

11.2

0.40

27.93

CDH-167

706022

21

22

1

0.088

9.7

0.23

15.86

CDH-167

706023

22

23

1

1.515

39.4

2.08

145.45

CDH-167

706024

23

23.5

0.5

0.407

55

1.19

83.49

CDH-167

706026

23.5

24

0.5

0.094

4.4

0.16

10.98

CDH-167

706027

24

25

1

0.173

5.4

0.25

17.51

CDH-167

706118

266

266.65

0.65

0.321

5.2

0.40

27.67

CDH-167

706153

302

303

1

0.046

4.2

0.11

7.42

CDH-167

706171

321

322

1

0.064

6.8

0.16

11.28

MTH-EC24-01

706178

0

1.5

1.5

0.07

5.5

0.15

10.4

MTH-EC24-01

706179

1.5

2.25

0.75

0.072

4

0.13

9.04

MTH-EC24-01

706180

2.25

3

0.75

2.53

59.8

3.38

236.9

MTH-EC24-01

706188

10

11

1

0.07

3.8

0.12

8.7

MTH-EC24-01

706219

39

40

1

0.047

4.1

0.11

7.39

MTH-EC24-01

706222

42

43

1

8.69

49.6

9.40

657.9

MTH-EC24-01

706223

43

44

1

2.42

31.2

2.87

200.6

MTH-EC24-01

706224

44

45

1

1.7

29.9

2.13

148.9

MTH-EC24-01

706226

45

46

1

13.6

84.7

14.81

1036.7

MTH-EC24-01

706227

46

47

1

0.746

63.4

1.65

115.62

MTH-EC24-01

706228

47

48

1

2.01

170

4.44

310.7

MTH-EC24-01

706229

48

48.69

0.69

1.175

64.6

2.10

146.85

MTH-EC24-01

706230

48.69

49.37

0.68

1.005

57.2

1.82

127.55

MTH-EC24-01

706231

49.37

50

0.63

0.079

2.9

0.12

8.43

MTH-EC24-01

706242

59

60

1

0.035

4.6

0.10

7.05

MTH-EC24-01

706249

70

71

1

0.143

1.3

0.16

11.31

MTH-EC24-01

706252

72

73

1

0.119

3.7

0.17

12.03

MTH-EC24-01

706255

92

93

1

0.056

6.1

0.14

10.02

MTH-EC24-01

706257

94

95

1

0.167

2.6

0.20

14.29

MTH-EC24-01

706258

95

96

1

0.097

1.8

0.12

8.59

MTH-EC24-01

706259

96

97

1

0.166

2.5

0.20

14.12

MTH-EC24-01

706263

109.3

110

0.7

0.086

2.2

0.12

8.22

MTH-EC24-01

706264

110

111

1

0.1

1.3

0.12

8.3

MTH-EC24-01

706265

111

112

1

0.234

1.4

0.25

17.78

MTH-EC24-01

706266

112

113

1

0.228

4.1

0.29

20.06

MTH-EC24-01

706267

113

114

1

0.14

2.6

0.18

12.4

MTH-EC24-01

706268

114

115

1

0.094

1.2

0.11

7.78

MTH-EC24-01

706270

116

117

1

0.218

1.3

0.24

16.56

MTH-EC24-01

706271

117

118

1

0.255

1.1

0.27

18.95

MTH-EC24-01

706272

118

118.8

0.8

0.147

1.3

0.17

11.59

MTH-EC24-01

706273

119.47

120

0.53

0.135

0.6

0.14

10.05

MTH-EC24-01

706274

120

121

1

0.101

0.5

0.11

7.57

MTH-EC24-01

706276

121

122

1

0.115

0.9

0.13

8.95

MTH-EC24-01

706279

124

125

1

0.099

2.8

0.14

9.73

MTH-EC24-01

706287

131

132

1

0.197

0.9

0.21

14.69

MTH-EC24-01

706289

133

134

1

0.08

1.4

0.10

7

MTH-EC24-01

706291

135

136

1

0.083

2.5

0.12

8.31

MTH-EC24-01

706292

136

137

1

0.202

8

0.32

22.14

MTH-EC24-01

706293

137

138

1

0.101

11.5

0.27

18.57

MTH-EC24-01

706294

138

139

1

0.079

8.6

0.20

14.13

MTH-EC24-01

706295

139

140

1

0.077

5.1

0.15

10.49

MTH-EC24-01

706296

140

141

1

0.187

22.9

0.51

35.99

MTH-EC24-01

706297

141

142

1

0.228

6.1

0.32

22.06

MTH-EC24-01

706298

142

143

1

0.132

4.8

0.20

14.04

MTH-EC24-01

706299

143

144

1

0.148

5.2

0.22

15.56

MTH-EC24-01

706301

144

145

1

0.133

5.4

0.21

14.71

MTH-EC24-01

706302

145

146

1

0.17

3.2

0.22

15.1

MTH-EC24-01

706303

146

146.6

0.6

0.169

1.9

0.20

13.73

MTH-EC24-01

706305

147.4

148

0.6

0.084

1.7

0.11

7.58

MTH-EC24-01

706306

148

149

1

0.091

2

0.12

8.37

MTH-EC24-01

706307

149

150

1

0.109

1.7

0.13

9.33

MTH-EC24-01

706308

150

151

1

0.099

2.4

0.13

9.33

MTH-EC24-01

706309

151

152

1

0.113

2.7

0.15

10.61

MTH-EC24-01

706310

152

153

1

0.104

4.6

0.17

11.88

MTH-EC24-01

706311

153

154

1

0.108

8.2

0.23

15.76

MTH-EC24-01

706313

163

164

1

0.135

8.4

0.26

17.85

MTH-EC24-01

706322

171

172

1

0.079

6

0.16

11.53

MTH-EC24-01

706323

172

173

1

0.087

6.3

0.18

12.39

MTH-EC24-01

706324

173

174

1

0.059

4.9

0.13

9.03

MTH-EC24-01

706326

174

175

1

0.089

3.4

0.14

9.63

MTH-EC24-01

706327

175

176

1

0.184

53

0.94

65.88

MTH-EC24-01

706335

201.15

202

0.85

0.057

10.2

0.20

14.19

MTH-EC24-01

706336

202

203

1

0.57

9.6

0.71

49.5

MTH-EC24-01

706337

203

204

1

0.165

2.1

0.20

13.65

MTH-EC24-01

706338

204

205

1

0.117

1.2

0.13

9.39

MTH-EC24-01

706339

205

206

1

0.069

2.2

0.10

7.03

MTH-EC24-01

706340

206

207

1

0.159

4.1

0.22

15.23

MTH-EC24-01

706341

207

208

1

0.092

6.4

0.18

12.84

MTH-EC24-01

706343

209

210

1

0.077

2.3

0.11

7.69

MTH-EC24-02

706406

0

1

1

0.152

5.4

0.23

16.04

MTH-EC24-02

706407

1

2

1

0.07

16.6

0.31

21.5

MTH-EC24-02

706408

2

3

1

0.056

9.2

0.19

13.12

MTH-EC24-02

706409

3

4

1

0.217

5.7

0.30

20.89

MTH-EC24-02

706410

4

4.8

0.8

0.193

4.9

0.26

18.41

MTH-EC24-02

706411

4.8

5.6

0.8

0.137

5.4

0.21

14.99

MTH-EC24-02

706412

5.6

6.6

1

0.136

6.9

0.23

16.42

MTH-EC24-02

706413

6.6

7.7

1.1

0.658

10.7

0.81

56.76

MTH-EC24-02

706414

7.7

8.85

1.15

0.123

15.5

0.34

24.11

MTH-EC24-02

706415

8.85

9.95

1.1

0.131

11.9

0.30

21.07

MTH-EC24-02

706416

9.95

10.65

0.7

0.145

8

0.26

18.15

MTH-EC24-02

706417

10.65

11.7

1.05

0.056

14.9

0.27

18.82

MTH-EC24-02

706418

11.7

12.35

0.65

0.096

6.1

0.18

12.82

MTH-EC24-02

706419

12.35

12.85

0.5

0.103

14.4

0.31

21.61

MTH-EC24-02

706420

12.85

13.8

0.95

0.247

10.2

0.39

27.49

MTH-EC24-02

706421

13.8

14.75

0.95

0.147

4.6

0.21

14.89

MTH-EC24-02

706422

14.75

15.5

0.75

0.081

1.9

0.11

7.57

MTH-EC24-02

706424

16.5

17

0.5

0.086

4

0.14

10.02

MTH-EC24-02

706426

17

18

1

0.09

3.2

0.14

9.5

MTH-EC24-02

706427

18

19

1

0.052

5.7

0.13

9.34

MTH-EC24-03

799085

14.5

15.5

1

0.10

2.2

0.13

9.41

MTH-EC24-03

799094

22.15

22.75

0.6

0.05

6.3

0.14

9.80

MTH-EC24-03

799098

28

29

1

0.01

7.9

0.12

8.67

MTH-EC24-03

799114

43

44

1

0.07

4.2

0.13

9.38

MTH-EC24-03

799117

46

47

1

0.10

4.2

0.16

11.41

MTH-EC24-03

799119

48

48.5

0.5

2.03

197

4.84

339.10

MTH-EC24-03

799121

48.5

49.1

0.6

0.10

10.3

0.24

17.09

MTH-EC24-03

799122

49.1

50

0.9

0.22

18.7

0.49

33.96

MTH-EC24-03

799123

50

51

1

0.16

4.3

0.23

15.78

MTH-EC24-03

799126

52

53

1

0.14

1.1

0.15

10.55

MTH-EC24-03

799129

55

56

1

0.11

5.4

0.19

13.17

MTH-EC24-03

799130

56

57

1

0.11

7.3

0.21

15.00

MTH-EC24-03

799137

65

66

1

0.19

4.3

0.25

17.32

MTH-EC24-03

799138

66

67

1

0.06

2.7

0.10

7.04

MTH-EC24-03

799139

67

68

1

0.06

3.1

0.11

7.58

MTH-EC24-03

799142

81

81.8

0.8

0.12

3.7

0.17

11.75

MTH-EC24-03

799143

81.8

82.4

0.6

0.26

9.4

0.39

27.46

MTH-EC24-03

799144

82.4

83

0.6

0.07

2.8

0.11

7.91

MTH-EC24-03

799145

83

84

1

0.19

10.3

0.34

23.53

MTH-EC24-03

799146

84

85

1

0.71

59.5

1.56

109.13

MTH-EC24-03

799147

85

86

1

0.30

16.7

0.53

37.35

MTH-EC24-03

799148

86

87

1

0.51

33.1

0.99

69.01

MTH-EC24-03

799149

87

88

1

0.26

23.6

0.59

41.59

MTH-EC24-03

799151

88

89

1

0.90

14.3

1.10

77.23

MTH-EC24-03

799154

91

92

1

0.20

1.1

0.21

14.82

MTH-EC24-03

799155

92

93

1

0.34

2.2

0.37

25.79

MTH-EC24-03

799156

93

94

1

0.15

1

0.17

11.78

MTH-EC24-03

799157

94

95

1

0.19

0.6

0.20

14.11

MTH-EC24-03

799158

95

96

1

0.12

0.8

0.13

8.99

MTH-EC24-03

799159

96

97

1

0.29

2

0.32

22.51

MTH-EC24-03

799161

97

98

1

0.19

3.4

0.24

16.56

MTH-EC24-03

799162

98

99

1

0.26

2

0.29

20.13

MTH-EC24-03

799164

100

101

1

0.12

1.7

0.15

10.24

MTH-EC24-03

799165

101

102

1

0.12

1.4

0.14

9.52

MTH-EC24-03

799167

103

104

1

0.09

1.2

0.11

7.71

MTH-EC24-03

799169

105

106

1

0.17

1.9

0.19

13.45

MTH-EC24-03

799170

106

107

1

0.14

3

0.18

12.45

MTH-EC24-03

799171

107

108

1

0.08

3

0.12

8.39

MTH-EC24-03

799172

108

109

1

0.24

2.3

0.28

19.31

MTH-EC24-03

799173

109

110

1

0.09

2

0.12

8.37

MTH-EC24-03

799174

110

111

1

0.12

1.8

0.15

10.34

MTH-EC24-03

799176

111

112

1

0.14

2.2

0.17

11.86

MTH-EC24-03

799177

112

113

1

0.15

1.4

0.17

11.83

MTH-EC24-03

799178

113

114

1

0.25

1.6

0.27

18.89

MTH-EC24-03

799179

114

115

1

0.15

2.9

0.19

13.61

MTH-EC24-03

799182

117

118

1

0.05

6.3

0.14

9.52

MTH-EC24-03

799184

119

120

1

0.08

1.9

0.11

7.36

MTH-EC24-03

799188

123

124

1

0.05

4.5

0.12

8.28

MTH-EC24-03

799206

150.8

151.5

0.7

0.31

6.5

0.40

28.20

MTH-EC24-03

799209

153.15

154

0.85

0.12

0.5

0.12

8.55

MTH-EC24-03

799212

156

157

1

0.29

12.4

0.46

32.35

MTH-EC24-03

799213

157

158

1

0.10

6.8

0.20

13.80

MTH-EC24-03

799214

158

159

1

0.06

3.4

0.11

7.81

MTH-EC24-03

799215

159

160

1

0.13

2.9

0.17

11.72

MTH-EC24-03

799216

160

161

1

0.10

2.7

0.14

9.70

MTH-EC24-03

799217

161

161.9

0.9

0.13

2

0.15

10.75

MTH-EC24-03

799219

162.55

163.3

0.75

0.10

2.1

0.13

8.96

MTH-EC24-03

799220

163.3

164

0.7

0.19

18.2

0.45

31.78

MTH-EC24-03

799221

164

165

1

0.13

5.3

0.21

14.40

MTH-EC24-03

799222

165

166

1

0.24

5

0.32

22.08

MTH-EC24-03

799223

166

167

1

0.11

5.2

0.18

12.62

MTH-EC24-03

799226

168

169

1

0.25

2.2

0.28

19.70

MTH-EC24-03

799233

174.7

175.45

0.75

0.05

4.8

0.12

8.16

MTH-EC24-03

799238

198

199

1

0.36

2.7

0.40

27.83

MTH-EC24-03

799239

199

200

1

0.07

3.3

0.12

8.13

MTH-EC24-03

799241

200

201

1

0.13

2.7

0.17

11.59

MTH-EC24-03

799242

201

202

1

0.68

9.5

0.81

56.96

MTH-EC24-03

799244

203

204

1

0.69

7.2

0.79

55.36

MTH-EC24-03

799261

226.7

227.35

0.65

0.35

2.8

0.39

27.58

MTH-EC24-03

799262

227.35

228

0.65

0.33

9.4

0.46

32.50

MTH-EC24-03

799263

228

229

1

0.10

2.6

0.14

9.74

MTH-EC24-03

799264

229

229.55

0.55

0.42

4.4

0.48

33.80

MTH-EC24-03

799265

229.55

230.1

0.55

0.17

5.7

0.25

17.32

MTH-EC24-03

799267

230.78

231.4

0.62

0.45

29

0.86

60.15

MTH-EC24-03

799268

231.4

232

0.6

0.07

3.2

0.12

8.31

MTH-EC24-03

799269

232

233

1

0.08

3.1

0.13

8.77

MTH-EC24-03

799328

287

288

1

0.07

3.2

0.11

7.82

MTH-EC24-03

799338

297

298

1

0.10

2

0.12

8.65

MTH-EC24-03

799339

298

299

1

0.11

3.9

0.16

11.32

MTH-EC24-03

799345

304

305

1

0.11

3.1

0.16

10.87

MTH-EC24-03

799353

311

312

1

0.14

0.9

0.15

10.70

MTH-EC24-04

799362

1.5

2.7

1.2

0.35

7.9

0.46

32.05

MTH-EC24-04

799363

2.7

3.9

1.2

0.14

5.3

0.21

14.82

MTH-EC24-04

799364

4.5

6

1.5

0.12

11.2

0.28

19.53

MTH-EC24-04

799365

6

7

1

0.62

33.4

1.10

77.08

MTH-EC24-04

799366

7

8

1

0.54

15

0.75

52.73

MTH-EC24-04

799367

8

9

1

0.75

31.2

1.19

83.56

MTH-EC24-04

799368

9

10

1

0.37

19.9

0.65

45.45

MTH-EC24-04

799369

10

11

1

0.09

12.1

0.26

18.47

MTH-EC24-04

799370

11

12

1

0.08

11

0.24

16.67

MTH-EC24-04

799371

12

13

1

4.15

195

6.94

485.5

MTH-EC24-04

799372

13

14

1

1.48

62.5

2.37

166.1

MTH-EC24-04

799373

14

15

1

0.45

28.1

0.85

59.81

MTH-EC24-04

799374

15

16

1

0.58

40.3

1.16

81.18

MTH-EC24-04

799376

16

17

1

0.08

11.4

0.24

17

MTH-EC24-04

799386

68

68.95

0.95

0.05

3.9

0.10

7.26

MTH-EC24-04

799387

68.95

70

1.05

0.12

12.7

0.30

21.17

MTH-EC24-04

799388

70

71

1

0.13

13.9

0.33

22.86

MTH-EC24-04

799389

71

72

1

0.13

15.1

0.34

23.92

MTH-EC24-04

799390

72

73

1

0.32

23.9

0.66

46.02

MTH-EC24-04

799391

73

74

1

0.24

12.4

0.42

29.13

MTH-EC24-04

799392

74

75

1

0.17

16.4

0.40

28.23

MTH-EC24-04

799393

75

76

1

0.14

8.6

0.26

18.54

MTH-EC24-04

799394

76

77

1

0.11

14.5

0.32

22.48

MTH-EC24-04

799395

77

77.9

0.9

0.17

8.2

0.29

20.31

MTH-EC24-04

799396

77.9

78.4

0.5

0.16

4.2

0.22

15.33

MTH-EC24-04

799401

104.2

105.2

1

0.13

2.9

0.17

11.79

MTH-EC24-04

799409

141

141.5

0.5

0.25

3.4

0.30

20.9

MTH-EC24-04

799410

141.5

142

0.5

1.05

21.6

1.36

95.1

MTH-EC24-04

799413

143.5

144

0.5

0.09

2.5

0.13

8.94

MTH-EC24-04

799415

145

146

1

0.08

3.3

0.13

8.97

MTH-EC24-04

799417

147

148

1

0.14

24.3

0.49

34.31

MTH-EC24-04

799418

148

149

1

0.17

16.2

0.40

28.1

MTH-EC24-04

799419

149

150

1

0.08

7.6

0.19

13.06

MTH-EC24-04

799420

150

150.45

0.45

0.83

5.8

0.91

63.62

MTH-EC24-04

799421

153.3

154

0.7

0.61

12.1

0.78

54.66

MTH-EC24-04

799422

154

155

1

0.12

3.5

0.17

11.97

MTH-EC24-04

799424

158.95

160

1.05

0.03

5.2

0.10

7.16

MTH-EC24-04

799426

160

161

1

0.03

6.3

0.12

8.54

MTH-EC24-04

799428

163.9

165

1.1

0.75

36.8

1.28

89.3

MTH-EC24-04

799429

165

166

1

0.18

8

0.29

20.39

MTH-EC24-04

799430

166

167

1

0.38

19.9

0.67

46.64

MTH-EC24-04

799431

167

168

1

0.86

22

1.17

81.85

MTH-EC24-04

799432

168

169

1

2.40

30

2.83

198

MTH-EC24-04

799433

169

170

1

0.73

91.6

2.04

142.91

MTH-EC24-04

799434

170

171

1

7.88

438

14.14

989.6

MTH-EC24-04

799435

171

172

1

0.07

3.5

0.12

8.26

MTH-EC24-04

799436

172

173

1

0.09

2.3

0.12

8.32

MTH-EC24-04

799437

173

174

1

0.12

1.2

0.13

9.25

MTH-EC24-04

799438

174

175

1

0.09

1.1

0.10

7.19

MTH-EC24-04

799439

175

175.45

0.45

0.24

5

0.31

21.45

MTH-EC24-04

799442

177.5

178

0.5

0.09

1.4

0.11

7.77

MTH-EC24-04

799452

214

215

1

0.11

5.2

0.19

13.04

MTH-EC24-05

799467

37

37.73

0.73

0.132

4.8

0.20

14.04

MTH-EC24-05

799476

65

65.5

0.5

0.276

1.4

0.30

20.72

MTH-EC24-05

799478

109.3

110.1

0.8

5.84

233

9.17

641.8

MTH-EC24-05

799498

226

227

1

0.147

0.9

0.16

11.19

MTH-EC24-05

799545

303

303.8

0.8

0.03

5.1

0.10

7.2

MTH-EC24-05

799562

341

342

1

0.227

1.2

0.24

17.09

MTH-EC24-05

799563

342

343

1

0.072

3.1

0.12

8.14

MTH-EC24-05

799564

343

344

1

0.24

5.3

0.32

22.1

MTH-EC24-05

799565

344

344.5

0.5

0.091

1.5

0.11

7.87

MTH-EC24-05

799567

345

346

1

0.084

2.1

0.11

7.98

MTH-EC24-05

799568

346

347

1

0.083

1.5

0.10

7.31

MTH-EC24-05

799577

354

355

1

0.077

2.7

0.12

8.09

MTH-EC24-05

799578

355

356

1

0.136

2.9

0.18

12.42

MTH-EC24-05

799579

356

357

1

0.061

3.3

0.11

7.57

MTH-EC24-05

799580

357

358

1

0.063

3.6

0.11

8.01

MTH-EC24-05

799582

359

360

1

0.067

6

0.15

10.69

MTH-EC24-05

799583

360

361.21

1.21

0.093

8

0.21

14.51

MTH-EC24-05

799590

367

367.7

0.7

1.14

49.4

1.85

129.2

MTH-EC24-05

799591

367.7

368.2

0.5

0.31

30.5

0.75

52.2

MTH-EC24-05

799593

369

369.62

0.62

0.038

61.2

0.91

63.86

MTH-EC24-05

799595

370.6

371.1

0.5

0.009

10.6

0.16

11.23

MTH-EC24-05

799598

373

374

1

0.029

7.2

0.13

9.23

MTH-EC24-05

799599

374

375

1

0.031

5

0.10

7.17

  

JORC Code, 2012 Edition – Table 1  

Section 1 Sampling Techniques and Data

 

Criteria

JORC Code explanation

Commentary

Sampling techniques

  • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. 

  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. 

  • Aspects of the determination of mineralisation that are Material to the Public Report. 

  • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. 

  • Samples for the Copalquin, Mexico drill programs consist of ½ HQ core cut lengthwise with a diamond saw. Intervals are nominally 1 m but may vary between 1.5 m to 0.5 m based on geologic criteria. 

  • Deeper portions of holes from CDH-075 onward consist of ½ NQ core. Sample sizes are tracked by core diameter and sample weights. 

  • The same side of the core is always sent to sample (left side of saw). 

  • Reported intercepts are calculated as either potentially underground mineable (below 120m below surface) or as potentially open-pit mineable (near surface). 

  • Potentially underground mineable intercepts are calculated as length weighted averages of material greater than 1 g/t AuEQ_70 allowing up to 2m of internal dilution. 

  • Potentially open-pit mineable intercepts are calculated as length weighted averages of material greater than 0.25 g/t AuEQ_70 allowing for up to 2m of internal dilution. 

  • Rock chip sampling is done with hammer and chisel along continuous chip lines oriented perpendicular to the mineralized structure. The samples are as representative as possible.  

Drilling techniques

  • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). 

  • Drilling is done with an MP500 man-portable core rig capable of drilling HQ size core to depths of 400 m. Core is recovered in a standard tube. Less than 7% of the total core drilled is NQ size core (as of 2022-01-15). 

Drill sample recovery

  • Method of recording and assessing core and chip sample recoveries and results assessed. 

  • Measures taken to maximise sample recovery and ensure representative nature of the samples. 

  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. 

  • Drill recovery is measured based on measured length of core divided by length of drill run. 

  • Recovery in holes CDH-001 through CDH-025 and holes CDH-032 through CDH-077 was always above 90% in the mineralized zones. Detailed core recovery data are maintained in the project database. 

  • Holes CDH-026 through CDH-031 had problems with core recovery in highly fractured, clay rich breccia zones. 

  • There is no adverse relationship between recovery and grade identified to date. 

Logging

  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. 

  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. 

  • The total length and percentage of the relevant intersections logged. 

•        Core samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

•        Core logging is both qualitative or quantitative in nature. Photos are taken of each box of core before samples are cut. Core is wetted to improve visibility of features in the photos.

  • All core has been logged and photographed.  

Sub-sampling techniques and sample preparation

  • If core, whether cut or sawn and whether quarter, half or all core taken. 

  • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. 

  • For all sample types, the nature, quality and appropriateness of the sample preparation technique. 

  • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. 

  • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. 

  • Whether sample sizes are appropriate to the grain size of the material being sampled. 

•        Core is sawn and half core is taken for sample.

•        Samples are prepared using ALS Minerals Prep-31 crushing, splitting and pulverizing. This is appropriate for the type of deposit being explored.

•        Visual review to assure that the cut core is ½ of the core is performed to assure representativity of samples.

•        field duplicate/second-half sampling is undertaken for 3% of all samples to determine representativity of the sample media submitted.

  • Sample sizes are appropriate to the grain size of the material being sampled. 

Quality of assay data and laboratory tests

  • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. 

  • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. 

  • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. 

•        Samples are assayed for gold using ALS Minerals Au-AA25 method a 30 g fire assay with an AA finish. This is considered a total assay technique.

     Samples are assayed for silver using ALS Minerals ME-ICP61 method. Over limits are assayed by AgOG63 and AgGRAV21. These are considered a total assay technique.

  • Standards, blanks and duplicates are inserted appropriately into the sample stream.  External laboratory checks will be conducted as sufficient samples are collected. Levels of accuracy (ie lack of bias) and precision have not yet been established. 

  • Soil samplingis also subject to a program of standards and blanks using the X-ray florescence (XRF) analyser. Results are acceptable. Samples were analysed using three wavelengths 50Kv, 40 Kv and 15 Kv for times of 120 seconds, 30 seconds and 30 seconds respectively. 

  • Samples with significant amounts of observed visible gold are also assayed by AuSCR21, a screen assay that analyses gold in both the milled pulp and in the residual oversize from pulverization. This has been done for holes CDH-075 and CDH-077. 

 

Verification of sampling and assaying

  • The verification of significant intersections by either independent or alternative company personnel. 

  • The use of twinned holes. 

  • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. 

  • Discuss any adjustment to assay data. 

•        The verification of significant intersections by either independent or alternative company personnel has not been conducted. A re-assay program of pulp duplicates is currently in progress.

•        The use of twinned holes. No twin holes have been drilled.

MTH has drilled one twin hole. Hole CDH-072, reported in the 15/6/2021 announcement, is a twin of holes EC-/002 and UC-03. Results are comparable.

•        Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols are maintained in the company’s core facility.

  • Assay data have not been adjusted other than applying length weighted averages to reported intercepts. 

Location of data points

  • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. 

  • Specification of the grid system used. 

  • Quality and adequacy of topographic control. 

•        Drill collar coordinates are currently located by handheld GPS. Precise survey of hole locations is planned. Downhole surveys of hole deviation are recorded for all holes. Locations for holes CDH-001 through CDH-048 and CDH-051 through CDH-148 have been surveyed with differential GPS to a sub 10 cm precision.

 

Hole CDH-005 was not surveyed

•        UTM/UPS WGS 84 zone 13 N

  • High quality topographic control from Photosat covers the entire drill project area. 

Data spacing and distribution

  • Data spacing for reporting of Exploration Results. 

  • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. 

  • Whether sample compositing has been applied. 

•        Data spacing is appropriate for the reporting of Exploration Results.

•        The Resource estimation re-printed in this announcement was originally released on 16 Nov 2021

  • No sample compositing has been applied. 

Orientation of data in relation to geological structure

  • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. 

  • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. 

•        Cut lines are marked on the core by the geologists to assure that the orientation of sampling achieves unbiased sampling of possible structures. This is reasonably well observed in the core and is appropriate to the deposit type.

  • The relationship between the drilling orientation and the orientation of key mineralised structures is not considered to have introduced a sampling bias. 

Sample security

  • The measures taken to ensure sample security. 

  • Samples are stored in a secure core storage facility until they are shipped off site by small aircraft and delivered directly to ALS Global. 

Audits or reviews

  • The results of any audits or reviews of sampling techniques and data. 

  • A review with spot checks was conducted by AMC in conjunction with the resource estimate published 16 Nov 2021. Results were satisfactory to AMC. 

 

Section 2 Reporting of Exploration Results

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

  • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. 

  • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. 

  • Concessions at Copalquin 

 

No.

Concession

Concession Title number

Area (Ha)

Location

1

LA SOLEDAD

52033

6

Tamazula, Durango, Mexico

2

EL COMETA

164869

36

Tamazula, Durango, Mexico

3

SAN MANUEL

165451

36

Tamazula, Durango, Mexico

4

COPALQUIN

178014

20

Tamazula, Durango, Mexico

5

EL SOL

236130

6,000

Tamazula, Durango and Badiraguato, Sinaloa, México

6

EL CORRAL

236131

907.3243

Tamazula, Durango and Badiraguato, Sinaloa, México

  •  

Exploration done by other parties

  • Acknowledgment and appraisal of exploration by other parties. 

  • Previous exploration by Bell Coast Capital Corp. and UC Resources was done in the late 1990’s and in 2005 – 2007. Work done by these companies is historic and non-JORC compliant. Mithril uses these historic data only as a general guide and will not incorporate work done by these companies in resource modelling. 

  • Work done by the Mexican government and by IMMSA and will be used for modelling of historic mine workings which are now inaccessible (void model)  

Geology

  • Deposit type, geological setting and style of mineralisation. 

  • Copalquin is a low sulfidation epithermal gold-silver deposit hosted in andesite. This deposit type is common in the Sierra Madre Occidental of Mexico and is characterized by quartz veins and stockworks surrounded by haloes of argillic (illite/smectite) alteration. Veins have formed as both low-angle semi-continuous lenses parallel to the contact between granodiorite and andesite and as tabular veins in high-angle normal faults. Vein and breccia thickness has been observed up to 30 meters wide with average widths on the order of 3 to 5 meters. The overall strike length of the semi-continuous mineralized zone from El Gallo to Refugio, Cometa, Los Pinos, Los Reyes, La Montura to Constancia is almost 6 kilometres. The southern area from Apomal to San Manuel and to Las Brujas-El Peru provides additional exploration potential up to 5km. 

Drill hole Information

  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:  

  • easting and northing of the drill hole collar
    • elevation or RL (Reduced Level – elevation above      

  • sea level in metres) of the drill hole collar  

  • dip and azimuth of the hole  

  • down hole length and interception depth  

  • hole length.  

  • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. 

Drillhole

Easting

Northing

Elevation

Azimuth

Dip

Final Depth

CDH-167

289607

2823791

1176

240

75

357

MTH-EC24-01

289612

2823837

1155

250

50

291

MTH-EC24-02

289662

2823808

1152

250

50

258

MTH-EC24-03

289582

2823849

1145

250

50

330

MTH-EC24-04

289619

2823766

1168

330

50

240

MTH-EC24-05

289603

2823896

1148

250

50

381

MTH-EC25-06

289612

2823805

1174

145

50

207

MTH-EC25-07

289506

2823824

1186

248

70

210

MTH-LS25-08

289615

2824074

1155

210

60

201

MTH-LS25-09

289570

2824106

1181

210

60

210

MTH-LS25-10

289643

2824122

1148

210

60

In progress

             
             
             
             
             
             
             
             
 

Data aggregation methods

  • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. 

  • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. 

  • The assumptions used for any reporting of metal equivalent values should be clearly stated. 

  • Intercepts are reported for all intercepts greater than or equal to 1 g/t AuEQ_70 using a 70:1 Silver to gold price ratio. No upper cut-off is applied to reporting intercepts. 

  • Length weighted averaging is used to report intercepts. The example of CDH-002 is shown. The line of zero assays is a standard which was removed from reporting. 

Au

raw

Ag

raw

Length

(m)

Au

*length

Ag

*length

         

7.51

678

0.5

3.755

339

         

11.85

425

0.55

6.5175

233.75

         
0 0 0 0 0          

0.306

16

1

0.306

16

         

0.364

31.7

1

0.364

31.7

         

3.15

241

0.5

1.575

120.5

         

10.7

709

0.5

5.35

354.5

         

15.6

773

0.5

7.8

386.5

         
         

From

To

Length

Au gpt

Ag gpt

   

4.55

25.6675

1481.95

91.95

96.5

4.55

5.64

325.70

 

  • Metal equivalent grades are reported using a 70:1 silver to gold price ratio. This ratio is based on the gold and silver prices reported on kitco.com as of 11 July 2021 (actual ratio at that date 69.3:1) 

Relationship between mineralisation widths and intercept lengths

  • These relationships are particularly important in the reporting of Exploration Results. 

  • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. 

  • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’). 

  • True widths at Refugio between sections 120 and 1,000 vary according to the hole’s dip. Holes drilled at -50 degrees may be considered to have intercept lengths equal to true-widths, Holes drilled at -70 degrees have true widths approximately 92% of the reported intercept lengths and holes drilled at -90 degrees have true widths of 77% of the reported intercept lengths.  

  • True widths are not known at La Soledad and downhole intercepts are reported. 

Diagrams

  • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. 

See figures in announcement

Balanced reporting

  • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. 

  • All exploration results are reported. 

Other substantive exploration data

  • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. 

  • No additional exploration data are substantive at this time. 

  • Metallurgical test work on drill core composite made of crushed drill core from the El Refugio drill hole samples has been conducted. 

  • The samples used for the test work are representative of the material that makes up the majority of the Maiden Resource Estimate for El Refugio release on 17th November 2021. 

  • The test work was conducted by SGS laboratory Mexico using standard reagents and test equipment. 

Further work

  • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). 

  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. 

  • Exploration results from the Copalquin District reporting in this release. 

   

1 See ‘About Copalquin Gold Silver Project’ section for JORC MRE details and AuEq. calculation.

2 See ‘About Copalquin Gold Silver Project’ section for JORC MRE details and AuEq. calculation.