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Mithril Silver and Gold Returns High-Grade Gold and Silver from 1.6 Km Vein Corridor at Target 5, Copalquin Property, Mexico



Mithril Silver and Gold Limited

- High-Grade Channel Sampling Highlights Compelling New Drill Target -

Melbourne, Australia and Vancouver, Canada – TheNewswire – June 3, 2025 - Mithril Silver and Gold Limited ("Mithril” or the "Company") (TSXV: MSG) (ASX: MTH) is pleased to provide high-grade channel sample results for a newly developing drill target (Target 5) at Mithril’s district scale Copalquin property, Durango State, Mexico.

Highlights

  • Mithril’s ongoing mapping and sampling program continues to uncover high-grade gold-silver drill targets across the expansive 70 km² Copalquin District in Mexico. 

  • Recent work at Target 5 has outlined multiple northwest-trending parallel veins up to 500 metres in length within a 1.6 km wide corridor, located just 1.5 km southwest of the existing Target 1 resource area. 

  • Notably, sampling at this lower elevation (650–900 m) has returned grades exceeding 1% copper, lead, and zinc.  Mineralisation has now been found for over 1,000 metres of vertical relief between Target 2 and Target 5.  The styles of mineralisation and associated host rocks support the model of a district wide epithermal system potentially centred along a 5km east-west trend of rhyolite flow domes. 

  • First-pass drilling at Targets 5 and 3 is scheduled for next quarter, following the completion of Target 1 resource update drilling and the district-scale geological model refinement.  

Highlight channel sample results from surface and underground workings within Target 5:

0.7 m @ 4.64 g/t gold, 732 g/t silver (226229; Mina Apomal)

0.8 m @ 2.84 g/t gold, 777 g/t silver (527107; Mina Apomal)

0.5 m @ 5.36 g/t gold, 706 g/t silver (527143; Apomal Norte)

0.8 m @ 2.58 g/t gold, 716 g/t silver (798719; Dulces Nombres)

Samples with high base metal values:

1.0 m @ 1.48 g/t gold, 236 g/t silver, 0.17% copper, 1.73 % lead, 0.06% zinc (798776; Veta Azul)

1.0 m @ 0.04 g/t gold, 8 g/t silver, 0.03% copper, 0.09 % lead 1.28 % zinc (79770; Veta Azul)

1.0 m @ 0.07 g/t gold, 41 g/t silver, 1.59 % copper, 19 ppm lead, 61 ppm zinc (226223; Apomal)

0.85 m @ 0.06 g/t gold, 145 g/t silver, 0.1% copper, 1.14 % lead, 0.05% zinc (527169; Duraznito)

 

“The high-grade channel sampling results at Target 5 are another strong endorsement of the Copalquin District’s potential to host multiple, high-grade gold-silver deposits,” said John Skeet, MD and CEO of Mithril Silver and Gold. “The wide vein corridor at Target 5, high grades, and presence of significant base metals at lower elevations underscore the robust vertical extent of this epithermal system. Importantly, these results confirm that our district-scale exploration strategy is delivering, with Target 5 now emerging as a compelling new drill target. We look forward to commencing the first-ever drilling at this area in the upcoming quarter, alongside continued work to update the resource at Target 1 and further define the broader mineralised system across the Copalquin District.”

 

COPALQUIN GOLD-SILVER DISTRICT, DURANGO STATE, MEXICO


Click Image To View Full Size

Figure 1 – Copalquin District location map, locations of mining and exploration activity and local infrastructure. Note: the reserve/resources from company websites for the neighbouring properties does not necessarily apply to the Copalquin Project. Resources/resources for neighbouring properties marked with * include estimated past production.

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 mineral resource estimate (MRE) at the Target 1 area (El Refugio-La Soledad)1  and a NI 43-101 Technical Report filed on SEDAR+, supported 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.

  


Click Image To View Full Size

Figure 2 LiDAR identified historic workings across the 70km2 district. Current drilling locations at Targets 1 and 2, high priority drill target area of La Constancia-El Jabali (Target 3) and the new developing Target 5.  Several new areas highlighted across the district for follow-up work.

Copalquin District Exploration Progress Update

Surficial and underground channel sampling at the Target 5 Area (El Apomal, El Duraznito, Veta Azul, Dulces Nombres) has returned excellent results, with several channel samples intersecting very high-grade silver and high-grade gold within a broad, outcropping vein system, which extends 1.6 km west of the Dulces Nombres to El Apomal Mine (Figure 4).

Full sample results are given in Table 2

Significant gold and silver target 5 channel sampling highlights include:

Dulces Nombres Mine area:

1.0 m@ 0.141 g/t Au, 841 g/t Ag (798709; underground)

0.8 m @ 2.58 g/t Au, 716 g/t Ag (798719; underground)

 

El Apomal Mine area:

0.7 m @ 4.64 g/t Au, 732 g/t Ag (226229; underground)

0.8 m @ 3.14 g/t Au, 333 g/t Ag (226241; underground)

0.9 m @ 5.2 g/t Au, 297 g/t Ag (226244; underground)

0.6 m @ 1.25 g/t Au, 381 g/t Ag (527103; underground)

0.8 m @ 2.84 g/t Au, 777 g/t Ag (527107; underground)

1.0 m @ 2.47 g/t Au, 252 g/t Ag (527141; surface)

0.5 m @ 5.36 g/t Au, 706 g/t Ag (527143; surface)

 

Significant base metal target 5 channel sampling highlights include:

1.0 m @ 1.48 g/t gold, 236 g/t silver, 0.17% copper, 1.73 % lead, 0.06% zinc (798776; Veta Azul)

1.0 m @ 0.04 g/t gold, 8 g/t silver, 0.03% copper, 0.09 % lead 1.28 % zinc (79770; Veta Azul)

1.0 m @ 0.07 g/t gold, 41 g/t silver, 1.59 % copper, 19 ppm lead, 61 ppm zinc (226223; Apomal)

0.85 m @ 0.06 g/t gold, 145 g/t silver, 0.1% copper, 1.14 % lead, 0.05% zinc (527169; Duraznito)

High-Potential Discovery at Target 5 – El Apomal: Target 5 development started with the dewatering, mapping and sampling of the historic El Apomal Mine (Figure 3). The mine, a 130-metre underground adit, is dominated by a mineralized quartz vein, up to 1.5 m wide (The Apomal vein). The southeast trending Apomal vein can be traced over 500 metres and remains open to the northwest and southeast. Several parallel vein sets have been mapped and sampled up to 300 m to the southwest of the Apomal Mine (Figure 3; Assays pending).

Anomalous silver values (up to 196 g/t Ag; Table 3) have been reported at the El Duraznito Mine which is located more than 300 m to the northeast of the Apomal mine (Figure 4, 5; Table 2).

The Veta Azul and Dulces Nombres Mines are located over 900 m northeast of the El Duraznito Mine and have returned high-grade silver values (up to 841 g/t Ag; Figure 4; Table 2). The veins in these mines appear to have a similar orientation to the veins observed underground and on surface in the El Apomal Mine area.

Moderate-grade Au and Ag mineralized quartz veins were intersected in two holes (CDH152 -5.66m @ 2.58 g/t gold, 230 g/t silver from 18.5m including 1.98m @ 4.59 g/t gold, 520 g/t silver from 18.5m and CDH-154 - 2.90m @ 1.86 g/t gold, 240 g/t silver from 75.1m) drilled at the historic Copalquin Mine which is located approximately 2.5 km east of El Apomal Mine. The veins at Copalquin are interpreted to be part of the wide vein system observed at Target 5.

Target 5 veins mapped to date, are primarily hosted in granodiorite and are situated at a lower elevation in the system at 650 – 900 m compared with the mineralised zones at Target 1 (900 – 1,150 m) and Target 2 (1,500 - 1,700 m).  Mineralised parallel vein sets have now been mapped and sampled for over 1,000 metres of vertical relief between Target 2 and Target 5 across a width of approximately 5 km, a further indication of the Copalquin District to potentially host a large, multi-target mineralized system.

The styles of mineralisation and associated host rocks found at various elevations conform to the model of a district wide low sulphidation epithermal system potentially centred along a 5km east-west trend of rhyolite flow domes.

Continued mapping and sampling is underway to the south and southeast of the El Apomal Mine where several outcropping veins have been identified. An exploration road is advancing to the Target 5 area to provide access for drill pads.

Further targets for mapping and sampling include the areas to the immediate south of Target 5 towards the historic mines Tasolera 1 and 2 (~1 km from Apomal) and to the southeast towards the historic mine Guamuchilito (~1.7 km from Apomal).

 


Click Image To View Full Size

Figure 3 Plan map showing silver equivalent assays for channel samples and mapping targets at El Apomal, El Duraznito, Veta Azul, Dulces Nombres, in Target 5 area. Mapping and sampling is ongoing in this area.  Gold and silver grades are shown as silver equivalent (AgEq) with silver being the most economically dominant metal at Target 5.


Click Image To View Full Size

Figure 4 Area (1 km2) within 70 km2 Copalquin District Showing the Apomal and Duraznito Channel Sampling Locations and Parallel Outcropping Vein Sets to the Southwest and Northeast. Gold and silver grades are shown as silver equivalent (AgEq) with silver being the most economically dominant metal at Target 5.

 


Click Image To View Full SizeFigure 5 El Apomal Mine Underground Area Channel Samples. Gold and silver grades are shown as silver equivalent (AgEq) with silver being the most economically dominant metal at Target 5.

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 a NI 43-101 Technical Report filed on SEDAR+

  

  • Indicated 691 kt @5.43 g/t gold, 114 g/t silver for 121,000 oz gold plus 2,538,000 oz silver 

  • Inferred 1,725 kt @4.55 g/t gold, 152 g/t silver for 252,000 oz gold plus 8,414,000 oz silver 

(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

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

*  In determining the gold equivalent (AuEq.) grade for reporting, a gold:silver price ratio of 70:1 was determined, using the formula: AuEq grade = Au grade + ((Ag grade/70) x (Ag recovery/Au recovery)). 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.  At this early stage, the metallurgical recoveries were assumed to be equal. Subsequent preliminary metallurgical test work produced recoveries of 91% for silver and 96% for gold (ASX Announcement 25 February 2022) and these will be used when the resource is updated in the future.   In the Company’s opinion there is reasonable potential for both gold and silver to be extracted and sold.

^ 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.

# For Target 5 area where silver equivalent (AgEq) has been used in the maps, AgEq is determined using the formula: AgEq grade = Ag grade + ((Au grade x 70) x (Au recovery/Ag recovery)). 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.   At this early stage, the metallurgical recoveries for Au and Ag are assumed to be equal in the absence of metallurgical test work for Target 5 material. In the Company’s opinion there is reasonable potential for both gold and silver to be extracted and sold.

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 2028.

-ENDS-

Released with the authority of the Board.

 

For further information contact:

John Skeet

Managing Director and CEO

jskeet@mithrilsilvergold.com

+61 435 766 809

NIKLI COMMUNICATIONS

Corporate Communications

liz@mithrilsilvergold.com

nicole@mithrilsilvergold.com

 

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 Patrick Loury who is Mithril’s Project Consultant. Mr Loury is a member of the American Institute of Professional Geologists and a Certified Professional Geologist (CPG). This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code.

 Mr Loury 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 Loury 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 Gold, Silver and Base Metal Assay Results from Target 5 Area Channel Samples.

 

Channel Sample ID

Easting

Northing

Elevation

Sample Type

Channel Section

Location

Width m

Au ppm

Ag ppm

Cu ppm

Pb ppm

Zn ppm

798709

289147

2823131

902

Underground

 

Dulces Nombres Nivel 1

1.00

0.141

841

2010

291

16

798710

289149

2823132

902

Underground

 

Dulces Nombres Nivel 1

1.00

0.005

7.1

1290

28

58

798711

289154

2823137

910

Underground

 

Dulces Nombres Nivel 2

1.00

0.016

23.1

508

66

80

798712

289158

2823141

910

Underground

1/4 L1

Dulces Nombres Nivel 2

0.50

0.007

1.3

334

34

87

798713

289158

2823140

910

Underground

2/4 L1

Dulces Nombres Nivel 2

0.70

0.02

3.6

1140

38

104

798714

289159

2823140

910

Underground

3/4 L1

Dulces Nombres Nivel 2

0.80

0.019

23.2

1345

35

79

798715

289159

2823139

910

Underground

4/4 L1

Dulces Nombres Nivel 2

0.50

0.005

1.6

1180

20

70

798716

289165

2823145

910

Underground

1/2 L2

Dulces Nombres Nivel 2

0.60

0.796

155

839

459

90

798717

289166

2823145

910

Underground

2/2 L2

Dulces Nombres Nivel 2

0.50

0.032

7

295

57

77

798718

289171

2823147

910

Underground

2/3 L3

Dulces Nombres Nivel 2

0.60

0.071

50.4

349

194

151

798719

289172

2823147

910

Underground

3/3 L3

Dulces Nombres Nivel 2

0.80

2.58

716

736

1395

136

798720

289174

2823147

910

Underground

1/2 L4

Dulces Nombres Nivel 2

0.70

0.058

4.2

27

80

168

798721

289174

2823146

910

Underground

2/2 L4

Dulces Nombres Nivel 2

0.60

0.005

2.6

542

31

323

798722

289170

2823148

910

Underground

1/3 L3

Dulces Nombres Nivel 2

0.60

0.039

12.3

119

92

125

798723

289178

2823137

921

Underground

1/3 L1

Dulces Nombres Nivel 3

0.60

0.027

16.8

2110

81

69

798724

289179

2823137

921

Underground

2/3 L1

Dulces Nombres Nivel 3

0.56

0.005

2.9

7610

45

76

798726

289179

2823136

921

Underground

3/3 L1

Dulces Nombres Nivel 3

0.70

0.005

3.7

1940

55

72

798727

289151

2823133

910

Surface

 

Dulces Nombres Nivel 3

1.20

0.006

29.8

1285

33

58

798764

289066

2823084

 

Underground

1/4 L1

Veta Azul

1.20

0.103

78.8

2560

2730

7760

798766

289066

2823085

 

Underground

2/4 L1

Veta Azul

1.00

0.095

44.6

1145

4890

3520

798767

289067

2823086

 

Underground

3/4 L1

Veta Azul

1.00

0.01

3.6

119

1525

2840

798768

289067

2823087

 

Underground

4/4 L1

Veta Azul

1.00

0.005

3.4

76

2550

2920

798769

289074

2823076

858

Surface

1/5

Veta Azul

1.00

0.008

8

198

1180

1135

798770

289073

2823076

858

Surface

2/5

Veta Azul

1.00

0.042

8

332

871

12750

798771

289073

2823075

858

Surface

3/5

Veta Azul

1.00

0.007

3.5

97

3680

6770

798772

289072

2823074

858

Surface

4/5

Veta Azul

1.00

0.023

5.2

81

2140

1435

798773

289075

2823077

858

Surface

5/5

Veta Azul

0.50

0.045

17.3

54

6780

934

798774

289102

2823073

870

Surface

1/8

Veta Azul

1.00

0.005

2.2

296

1045

1215

798775

289102

2823072

869

Surface

2/8

Veta Azul

1.00

0.036

32.3

1220

1835

626

798776

289102

2823071

869

Surface

3/8

Veta Azul

1.00

1.475

236

1655

17300

588

798777

289102

2823070

869

Surface

4/8

Veta Azul

1.00

0.19

79.8

1110

5610

450

798778

289102

2823069

868

Surface

5/8

Veta Azul

1.00

0.093

116

1940

6320

482

798779

289102

2823068

868

Surface

6/8

Veta Azul

1.00

0.757

279

1510

4500

490

798780

289102

2823067

868

Surface

7/8

Veta Azul

1.00

0.171

67.6

1200

4210

788

798781

289102

2823066

867

Surface

8/8

Veta Azul

1.00

0.074

18.3

203

855

172

798783

289116

2823067

873

Surface

1/8

Veta Azul

1.00

0.007

1.6

49

159

218

798784

289116

2823066

872

Surface

2/8

Veta Azul

1.00

0.009

2.5

119

156

343

798785

289116

2823065

872

Surface

3/8

Veta Azul

0.70

0.448

244

3260

1305

362

798786

289116

2823064

872

Surface

4/8

Veta Azul

0.80

0.029

25.5

591

1075

1070

798787

289116

2823062.5

871

Surface

5/8

Veta Azul

0.50

0.067

9.7

301

964

463

798788

289116

2823062

871

Surface

6/8

Veta Azul

0.50

0.045

5.5

201

728

631

798789

289117

2823061

871

Surface

7/8

Veta Azul

0.50

0.112

21.5

487

3520

2210

798790

289117

2823060

870

Surface

8/8

Veta Azul

0.50

0.072

6.2

243

920

1310

226164

288050

2822562.85

684

Surface

1/4

Arroyo El Apomal

0.50

0.118

30

57

181

231

226165

288049

2822562.17

684

Surface

2/4

Arroyo El Apomal

0.50

0.027

2

27

27

68

226166

288049

2822561.73

684

Surface

3/4

Arroyo El Apomal

0.80

0.007

0.5

34

11

23

226167

288049

2822561.3

684

Surface

4/4

Arroyo El Apomal

0.60

0.023

0.6

25

16

32

226168

288044

2822568.64

686

Surface

1/3

Arroyo El Apomal

0.50

0.183

28.4

35

282

424

226169

288043

2822568.28

686

Surface

2/3

Arroyo El Apomal

0.80

0.122

7.8

46

163

121

226170

288043

2822567.67

686

Surface

3/3

Arroyo El Apomal

0.60

0.005

0.5

14

9

41

226171

288026

2822603.43

691

Surface

1/4

Arroyo El Apomal

1.00

0.009

2

15

23

38

226172

288025

2822603.38

691

Surface

2/4

Arroyo El Apomal

0.70

0.016

1

31

20

35

226173

288024

2822602.92

691

Surface

3/4

Arroyo El Apomal

0.50

0.013

3.3

26

49

98

226174

288024

2822602.67

692

Surface

4/4

Arroyo El Apomal

0.50

0.005

0.5

13

12

80

226175

288022

2822611.96

692

Surface

1/3

Arroyo El Apomal

0.60

0.046

1

25

18

61

226177

288021

2822611.99

692

Surface

2/3

Arroyo El Apomal

1.00

0.145

9.5

13

28

44

226178

288020

2822612.09

692

Surface

3/3

Arroyo El Apomal

1.00

0.041

3.5

24

23

43

226179

288022

2822618.37

692

Surface

1/2

Arroyo El Apomal

1.00

0.138

15.8

60

66

166

226181

288021

2822618.49

692

Surface

2/2

Arroyo El Apomal

1.10

0.009

0.9

25

14

70

226182

288223

2822669.12

694

Surface

1/3

Arroyo El Apomal

1.00

0.288

49.5

23

113

199

226183

288222

2822667.36

694

Surface

2/3

Arroyo El Apomal

1.20

0.045

3.2

29

189

153

226184

288222

2822665.96

694

Surface

3/3

Arroyo El Apomal

1.00

0.446

47.6

28

536

818

226185

288359

2822796.71

709

Surface

1/4

Arroyo El Apomal

1.00

0.008

1.3

44

34

95

226186

288361

2822796.05

709

Surface

2/4

Arroyo El Apomal

1.00

0.017

1.8

23

80

56

226187

288363

2822795.32

710

Surface

3/4

Arroyo El Apomal

0.50

0.011

1.7

161

35

76

226188

288364

2822795.32

710

Surface

4/4

Arroyo El Apomal

1.00

0.018

1.2

140

27

72

226189

288370

2822797.2

710

Surface

1/4

Arroyo El Apomal

0.60

0.005

0.6

100

13

39

226190

288371

2822797.08

710

Surface

2/4

Arroyo El Apomal

0.30

0.005

0.9

53

17

132

226191

288372

2822797.26

710

Surface

3/4

Arroyo El Apomal

0.60

0.037

2.3

40

137

107

226192

288372

2822797.56

710

Surface

4/4

Arroyo El Apomal

0.90

0.009

1

147

15

63

226193

288514

2822835

742

Surface

 

Arroyo El Apomal

1.10

0.005

0.5

77

92

214

226194

288580

2822771

731

Surface

 

Arroyo El Apomal

1.00

0.03

1.1

27

39

85

226195

288637

2822714

735

Surface

 

Arroyo El Apomal

0.50

0.016

2.2

15

34

31

226196

288640

2822711.65

737

Surface

 

Arroyo El Apomal

0.80

0.02

1

32

12

48

226197

288765

2822656

746

Surface

 

Arroyo El Apomal

1.00

0.012

0.6

45

7

32

226198

288796

2822649.7

759

Surface

1/17

Arroyo El Apomal

0.60

0.035

0.5

38

13

39

226199

288796

2822650.28

759

Surface

2/17

Arroyo El Apomal

0.70

0.019

6.3

375

14

27

226201

288797

2822650.8

759

Surface

3/17

Arroyo El Apomal

1.00

0.021

1.1

412

16

41

226202

288798

2822651.34

759

Surface

4/17

Arroyo El Apomal

1.00

0.021

5.1

2420

21

53

226203

288798

2822651.74

759

Surface

5/17

Arroyo El Apomal

1.00

0.013

1

474

17

47

226204

288799

2822652.37

759

Surface

6/17

Arroyo El Apomal

1.00

0.024

17.9

2190

22

59

226205

288800

2822652.89

759

Surface

7/17

Arroyo El Apomal

1.00

0.016

2.5

963

23

65

226206

288800

2822653.5

759

Surface

8/17

Arroyo El Apomal

1.00

0.012

1.2

337

12

47

226207

288801

2822653.92

759

Surface

9/17

Arroyo El Apomal

1.00

0.056

4.5

3490

12

42

226208

288802

2822654.59

759

Surface

10/17

Arroyo El Apomal

1.00

0.043

3.5

1620

10

40

226209

288803

2822655.25

759

Surface

11/17

Arroyo El Apomal

1.00

0.005

0.5

63

11

36

226211

288804

2822655.83

759

Surface

12/17

Arroyo El Apomal

1.00

0.428

68.5

216

147

135

226212

288804

2822656.32

759

Surface

13/17

Arroyo El Apomal

1.00

0.012

2.1

151

16

72

226213

288805

2822657.04

759

Surface

14/17

Arroyo El Apomal

1.00

0.006

0.6

26

13

39

226214

288806

2822657.65

759

Surface

15/17

Arroyo El Apomal

1.00

0.041

3.1

43

36

32

226215

288807

2822658.2

759

Surface

16/17

Arroyo El Apomal

1.90

0.005

0.5

27

8

118

226217

288809

2822659.41

759

Surface

17/17

Arroyo El Apomal

0.50

0.006

0.7

77

10

62

226218

288800

2822655.59

757

Surface

1/9

Arroyo El Apomal

0.50

0.055

4.1

2770

15

56

226219

288800

2822655.16

758

Surface

2/9

Arroyo El Apomal

1.00

0.005

0.5

219

10

32

226220

288801

2822654.95

759

Surface

3/9

Arroyo El Apomal

0.50

0.02

2.1

1265

11

35

226221

288801

2822654.25

760

Surface

4/9

Arroyo El Apomal

0.70

0.017

5.8

1545

11

41

226222

288802

2822653.25

761

Surface

5/9

Arroyo El Apomal

1.00

0.032

9.4

2080

35

112

226223

288803

2822651.92

762

Surface

6/9

Arroyo El Apomal

1.00

0.069

41.2

15900

19

61

226224

288804

2822650.37

763

Surface

7/9

Arroyo El Apomal

1.00

0.006

2.4

1190

7

41

226226

288805

2822648.58

764

Surface

8/9

Arroyo El Apomal

1.00

0.018

9.5

1310

11

35

226227

288806

2822647.49

765

Surface

9/9

Arroyo El Apomal

1.00

0.009

5.1

895

10

42

226228

288020

2822639.24

661

Underground

 

Mina El Apomal

0.80

0.868

219

99

230

875

226229

288018

2822642.94

661

Underground

1/2

Mina El Apomal

0.70

4.64

732

130

401

541

262230

288017

2822642.27

661

Underground

2/2

Mina El Apomal

0.60

0.071

11.3

23

20

102

226231

288014

2822648.61

661

Underground

 

Mina El Apomal

1.00

0.522

156

40

338

664

226233

288012

2822652.74

661

Underground

1/2

Mina El Apomal

0.60

0.335

68

34

195

347

226234

288011

2822652.31

661

Underground

2/2

Mina El Apomal

0.60

0.033

5.8

10

59

160

226235

288008

2822655.65

661

Underground

1/2

Mina El Apomal

0.80

0.081

1.5

13

17

78

226236

288008

2822655.35

661

Underground

2/2

Mina El Apomal

1.00

0.44

56.4

17

117

509

226237

288004

2822659.35

661

Underground

1/2

Mina El Apomal

0.70

0.395

104

51

124

134

226238

288003

2822657.95

661

Underground

2/2

Mina El Apomal

0.80

0.009

0.6

5

15

41

226239

287999

2822661.72

661

Underground

1/2

Mina El Apomal

1.10

0.392

82.6

23

73

118

226241

287999

2822660.81

661

Underground

2/2

Mina El Apomal

0.80

3.14

333

88

173

166

226242

287996

2822664.33

661

Underground

1/2

Mina El Apomal

1.00

0.96

135

47

73

97

226243

287996

2822663.54

661

Underground

2/2

Mina El Apomal

0.75

0.621

82.7

21

46

85

226244

287993

2822667.72

661

Underground

1/2

Mina El Apomal

0.90

5.2

297

48

138

211

226245

287992

2822667.02

661

Underground

2/2

Mina El Apomal

0.50

0.042

4.7

26

83

64

226246

287990

2822672.58

661

Underground

1/2

Mina El Apomal

0.75

0.54

44.3

60

38

375

226247

287989

2822671.85

661

Underground

2/2

Mina El Apomal

0.80

0.898

162

50

160

469

226248

287986

2822675.31

661

Underground

1/2

Mina El Apomal

0.90

0.677

86.1

13

66

88

226249

287985

2822674.7

661

Underground

2/2

Mina El Apomal

0.80

0.246

83.8

26

31

52

527101

287983

2822680.1

661

Underground

1/2

Mina El Apomal

0.70

0.032

3

54

54

37

527102

287983

2822678.77

661

Underground

2/2

Mina El Apomal

0.80

0.044

3.7

10

56

50

527103

287981

2822684.04

661

Underground

1/2

Mina El Apomal

0.60

1.25

381

34

161

118

527104

287980

2822683.88

661

Underground

2/2

Mina El Apomal

0.90

0.393

13.8

11

22

28

527105

287977

2822688.35

661

Underground

 

Mina El Apomal

0.60

0.175

7.2

30

14

29

527107

287975

2822693.15

661

Underground

 

Mina El Apomal

0.80

2.84

777

96

236

307

527108

287971

2822697.09

661

Underground

 

Mina El Apomal

0.50

0.394

81.1

19

80

74

527109

287968

2822700.43

661

Underground

1/2

Mina El Apomal

0.80

0.781

146

42

54

48

527110

287967

2822700.06

661

Underground

2/2

Mina El Apomal

0.70

0.047

5.3

28

10

31

527111

287964

2822703.28

661

Underground

 

Mina El Apomal

1.00

0.66

60.3

51

32

46

527112

287960

2822707.4

661

Underground

 

Mina El Apomal

0.60

0.008

1

37

9

23

527113

288016

2822636.66

661

Underground

1/2

Mina El Apomal

0.80

0.103

9.5

12

22

90

527114

288014

2822635.87

661

Underground

2/2

Mina El Apomal

0.50

0.727

6.2

15

17

70

527115

288009

2822635.02

661

Underground

1/4

Mina El Apomal

1.00

0.005

0.5

4

21

75

527116

288007

2822634.84

661

Underground

2/4

Mina El Apomal

1.00

0.009

0.5

6

31

78

527117

288007

2822634.47

661

Underground

3/4

Mina El Apomal

1.00

0.007

0.5

2

14

49

527118

288005

2822634.05

661

Underground

4/4

Mina El Apomal

0.60

0.005

0.5

2

13

60

527119

288002

2822633.26

661

Underground

 

Mina El Apomal

1.00

0.019

0.8

14

15

50

527133

287756

2822875

702

Surface

 

Apomal Norte

0.50

0.269

44.8

20

45

53

527134

287787

2822845

735

Surface

 

Apomal Norte

0.50

0.011

1.2

86

24

104

527135

287795

2822839

741

Surface

 

Apomal Norte

1.00

0.399

65.6

58

310

242

527136

287818

2822832

720

Surface

 

Apomal Norte

0.50

0.026

4

90

106

210

527137

287829

2822829

767

Surface

 

Apomal Norte

0.50

0.082

8.1

55

248

157

527138

287857

2822827

755

Surface

 

Apomal Norte

1.00

0.037

3.2

28

19

33

527139

287875

2822806

737

Surface

 

Apomal Norte

0.50

1.645

172

30

79

113

527140

287884

2822800

719

Surface

 

Apomal Norte

1.00

0.184

21.8

110

248

135

527141

287884

2822799

776

Surface

 

Apomal Norte

1.00

2.47

252

41

71

104

527142

287893

2822790

779

Surface

 

Apomal Norte

0.50

0.307

5.4

80

11

50

527143

287901

2822791

746

Surface

 

Apomal Norte

0.50

5.36

706

88

461

249

527144

287896

2822793

753

Surface

L1 1/2

Apomal Norte

1.00

0.024

4.7

86

17

46

527145

287896

2822794

764

Surface

L1 2/2

Apomal Norte

1.00

0.121

3.7

22

16

40

527147

287913

2822798

786

Surface

 

Apomal Norte

0.50

0.038

3.1

52

33

87

527148

287936

2822784

797

Surface

 

Apomal Norte

0.50

0.249

109

67

50

144

527149

287971

2822790

778

Surface

 

Apomal Norte

1.00

0.078

5.3

41

25

56

527151

288101

2822440

678

Surface

 

Apomal Sur

1.00

0.085

1

29

296

224

527152

288031

2822344.25

672

Surface

1/6

Apomal Sur

0.60

0.02

2.8

25

20

128

527153

288031

2822343.09

672

Surface

2/6

Apomal Sur

1.50

0.006

2

8

11

116

527154

288031

2822341.48

672

Surface

3/6

Apomal Sur

0.80

0.012

0.5

7

24

113

527155

288030

2822340.37

672

Surface

4/6

Apomal Sur

0.70

0.005

0.5

5

15

137

527156

288030

2822339.24

672

Surface

5/6

Apomal Sur

1.00

0.008

0.6

10

157

307

527157

288030

2822338.08

672

Surface

6/6

Apomal Sur

0.60

0.021

1.3

20

461

805

527158

288041

2822297.19

670

Surface

1/3

Apomal Sur

1.00

0.292

41.8

48

2720

1970

527159

288040

2822297.48

670

Surface

2/3

Apomal Sur

1.00

0.118

30

28

2020

1950

527160

288039

2822297.84

670

Surface

3/3

Apomal Sur

0.50

0.038

2.1

16

196

209

527161

288027

2822295.6

667

Surface

1/2

Apomal Sur

1.00

0.007

0.7

15

57

122

527162

288026

2822295.23

667

Surface

2/2

Apomal Sur

0.50

0.011

2.4

8

133

97

527163

288303

2822833.44

686

Underground

1/4

Mina El Duraznito

0.70

0.007

1.3

45

44

97

527164

288302

2822833.02

686

Underground

2/4

Mina El Duraznito

0.70

0.01

2.8

37

833

155

527165

288301

2822832.57

686

Underground

3/4

Mina El Duraznito

0.50

0.005

0.5

52

26

374

527166

288301

2822832.05

686

Underground

4/4

Mina El Duraznito

0.70

0.013

4.6

41

1460

334

527167

288296

2822833.44

686

Underground

 

Mina El Duraznito

1.00

0.009

7.1

24

1835

725

527168

288297

2822818

700

Underground

 

Mina El Duraznito

0.60

0.122

196

2720

9240

393

527169

288295

2822817

700

Underground

 

Mina El Duraznito

0.85

0.061

145

975

11400

493

527170

288293

2822820

700

Underground

 

Mina El Duraznito

0.80

0.086

159

2220

6060

954

527171

288300

2822821

700

Surface

 

Mina El Duraznito

0.80

0.021

124

113

1280

79

527172

288283

2822822.66

720

Underground

1/4

Mina El Duraznito

1.00

0.019

4.8

971

1160

446

527173

288282

2822822.84

720

Underground

2/4

Mina El Duraznito

0.50

0.013

4.5

739

1170

405

527174

288282

2822822.29

720

Underground

3/4

Mina El Duraznito

0.70

0.015

5.4

519

2260

487

527176

288281

2822821.53

720

Underground

4/4

Mina El Duraznito

0.80

0.06

23.3

173

850

249

527177

288282

2822823.78

720

Underground

1/4

Mina El Duraznito

0.90

0.056

26.2

278

1035

577

527178

288288

2822823.69

720

Underground

2/4

Mina El Duraznito

1.00

0.025

38.2

1355

6320

511

527179

288281

2822824.01

720

Underground

3/4

Mina El Duraznito

1.15

0.057

43.8

787

2930

654

527180

288281

2822824.91

720

Underground

4/4

Mina El Duraznito

1.20

0.009

2

505

67

330

527181

288280

2822828.89

720

Underground

1/2

Mina El Duraznito

1.00

0.097

158

1875

9630

1005

527183

288279

2822828.89

720

Underground

2/2

Mina El Duraznito

1.10

0.02

4.4

386

150

365

  

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 representativity 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. 

  • Drill core samples are cut lengthwise with a diamond saw. Intervals are nominally 1 m but may vary between 0.5 m to 1.5 m based on geologic criteria. 

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

  • Reported intercepts are calculated as either potentially underground mineable (100m down hole) or as potentially open-pit mineable (near surface). 

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

  • Rock Sawn Channel samples underground and surface are collected with the assistance of a handheld portable saw. The channels are 2.5 to 3cm deep and 6-8 cm wide along continuous lines oriented perpendicular to the mineralized structure. The samples are as representative as possible  

  • Rock Sawn Channel surface samples were surveyed with a Handheld GPS then permanently mark with an aluminium tag and red colour spray across the strike of the outcrop over 1 metre. Samples are as representative as possible 

  • Rock Sawn Channel underground samples were located after a compass and tape with the mine working having a surveyed control point at the portal, then permanently marked with an aluminium tag and red colour spray oriented perpendicular to the mineralized structure. 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 MP500 man-portable core rigs capable of drilling HQ size core to depths of 350-400m (depending on ground conditions), reducing to NQ size core for greater depths. Core is recovered in a standard tube. 

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. 

  • Geotechnical and geological   logging of the drill core takes place on racks in the company core shed. 

  • 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. Photos of cut core intervals are taken after sampling. Core is wetted to improve visibility of features in the photos. 

  • All core has been logged and photographed.  

  • Rock sawn channel samples are marked, measured and photographed at location 

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 representativity 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. 

 

  • Crushed core duplicates are split/collected by the laboratory and submitted for assay (1 in 30 samples) 

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

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

 

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 and blanks are inserted at a rate of one per every 25 samples and one per every 40 samples, respectively.  Pulp duplicate sampling is undertaken for 3% of all samples (see above).  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. 

  • Certified Reference Materials – Rock Labs and CDN CRMs have been used throughout the project including, low (~2 g/t Au), medium (~9 g/t Au) and high (~18g/t Au and ~40 g/t Au). Results are automatically checked on data import into the BEDROCK database to fall within 2 standard deviations of the expected value.  

  • 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. 

  • 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 using a Reflex Multishot tool for all holes.  A survey measurement is first collected at 15 meters downhole, and then every 50 meters until the end of the hole. 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 LiDAR imagery and orthophotos covers the entire 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 17 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. 

  • Rock sawn channel samples are cut perpendicular to the observed vein orientation wherever possible 

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 17 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. 

 

  • No new drilling reported in this announcement 

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. 

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

  • 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

25.667

1481.9

91.95

96.5

4.55

5.64

325.7

 

  • In determining the gold equivalent (AuEq.) grade for reporting, a gold:silver price ratio of 70:1 was determined, using the formula: AuEq grade = Au grade + ((Ag grade/70) x (Ag recovery/Au recovery)). 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) fromkitco.com  At this early stage, the metallurgical recoveries are assumed to be equal. Subsequent preliminary metallurgical test work produced recoveries of 91% for silver and 96% for gold (ASX Announcement 25 February 2022). 

  • For Rock Saw Channel Sampling at Target 5, AgEq is determined using the formula: AgEq grade = Ag grade + ((Au grade x 70) x (Au recovery/Ag recovery)). 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) fromkitco.com   At this early stage, the metallurgical recoveries for Au and Ag are assumed to be equal in the absence of metallurgical test work for Target 5 material. In the Company’s opinion there is reasonable potential for both gold and silver to be extracted and sold. 

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 had true widths approximately 92% of the reported intercept lengths and holes drilled at -90 degrees had true widths of 77% of the reported intercept lengths.  

  • True widths at La Soledad are not fully understood and downhole intercepts to date, are reported. 

  • At Las Brujas in Target 2, true widths are not yet known since we are still in the early stages of target definition. 

  • Rock sawn channel samples are cut perpendicular to the observed vein orientation wherever possible 

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 for intercepts greater than or equal to 0.1 g/t gold equivalent (gold plus silver at 70:1 price ratio for gold:silver). 

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. 

  • The Company drilled 148 diamond core holes from July 2020 to July 2022 for 32,712 m.  The Company has stated its target to drill 40,000m from June 2024 until the end of 2025. 

  • Diagrams are included in the announcements and presentations showing the drill target areas within the Copalquin District 

 

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