Mithril Resources Ltd. provided exploration results for its 100% optioned Copalquin Gold Silver Project in Mexico where a maiden 529koz gold equivalent high-grade gold-silver JORC resource has been defined at El Refugio-La Soledad. Since acquiring the property in May 2020, Mithril has been drilling in the Copalquin district with one man-portable diamond drill rig developing several targets in the district and delivering a high-grade maiden JORC resource at El Refugio. The current program of work is exploring two main trends of historic mine workings across the district further ranking and developing drill targets and expanding/upgrading the maiden resource at El Refugio.

During the maiden drill program in 2020, Mithril identified a large upwelling hydrothermal zone at El Refugio which hosts the maiden mineral resource estimate: 2,416,000 tons at 4.80 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. This high-quality and high-grade resource is open at depth beyond where some of the highest grade intercepts were recorded. Additionally, there is significant upside beyond this maiden resource area to increase the district resources for gold and silver.

Mining study work and metallurgy reported earlier this year, show the current resource material to be amenable to conventional underground mining and processing methods, yielding high gold and silver extraction. Drilling recommenced at El Refugio in May 2022 with a program of six deep holes, drilled from a location slightly oblique to the main structure, in order to reduce the length of the drill holes to reach the targeted depth. Assays have been received for the first holes.

The program successfully achieved the objective of locating the main structure and confirming high-grade gold and silver while providing additional information for the location of the upwelling feeder zone. The main intercept in hole CDH-137 of 5.67m at 4.37 g/t gold, 174g/t silver from 331.33m, (CDH-137), including 1.67m at 9.64 g/t gold, 399 g/t silver from 331.33 plus 1.00m at 1.68 g/t gold, 67.2 g/t silver from 367.0m and 1.00m at 1.27 g/t gold, 46.1 g/t silver from 370.0m. The remaining drill hole samples are in the laboratory for assay.

Drilling is currently in progress on the eastern side of El Refugio targeting deep and near to where the main El Refugio upwelling zone is projected. Core from the most recent holes have the first observed occurrences of platy quartz after calcite, a texture indicative of boiling and gold deposition. Late amethyst is also observed filling what was open space at the time of mineralization.

This texture is indicative of boiling. Visible silver minerals are commonly observed in the mineralized veins. Results from the soil sampling program at the La Constancia area on the eastern end of the Copalquin District Middle Section are given below.

The results highlight gold in soils values which are generally consistent with mapped surface veins and historic workings (shown in black on the map below). These results support further work to progress the area for exploration drilling in the future. Work is progressing to assess the first stage development options to optimally exploit the high-grade El Refugio resource.

There are options to reduce the mine development meterage and to take advantage of topography and high-grade zones within the El Cometa-El Refugio resource on the eastern side of the deposit to potentially produce attractive development economics. The Las Brujas-El Peru target is drill ready following positive results from the rock chip sampling program from within the historic mine working and the soils sampling program that revealed a good gold and silver anomaly. The historic mine workings at Las Brujas and at El Peru are connected by a 500m long surface trace of quartz vein.

Mapping and rock chip sampling of a north-south oriented structure at El Guamuchilito has been completed. Aerial drone surveying will continue until the end of the dry season usually around mid-late June.