Mithril Silver and Gold (ASX:MTH) Starts Scoping Study at Target 1 in Mexico

Aditi Sarkar

28 October 2026 02:35 PM AEDT

Mithril Silver and Gold (ASX:MTH) Starts Scoping Study at Target 1 in Mexico

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Highlights

First systematic drilling at Target 4 returned wide, high-grade silver-gold mineralisation over 550m of strike.
Hole CO26-001 returned 11.70m at 456 g/t AgEq, including 0.60m at 3,877 g/t AgEq.
A Scoping Study/PEA has commenced at Target 1, targeted for early 2027.
The fully funded 25,000m 2026 drilling program is due to finish in late October 2026.

Mithril Silver and Gold Limited (ASX:MTH)T(SXV:MSG) has released its September 2026 quarterly activities report for its Copalquin and La Dura properties in Durango State, Mexico. The quarter saw Target 4 emerge as a potential next resource area and the start of a Scoping Study at Target 1.

Target 4 Drilling Results

First systematic drilling at Target 4 on the Copalquin-Zaragoza Structure returned wide, high-grade silver-gold mineralisation over 550m of strike and 200m vertically. The structure has a potential strike length of 1.5km and remains open in both directions.

Hole CO26-001 returned 11.70m at 456 g/t AgEq from 22.0m, including 0.60m at 3,877 g/t AgEq. Hole CO26-002 returned 13.95m at 387 g/t AgEq, and CO26-003 returned 6.50m at 320 g/t AgEq. Two drill rigs are working at Target 4, with assays pending.

Target 1 Resource and Scoping Study

The upgraded Target 1 Mineral Resource is 75% Indicated and constrained within preliminary underground mining shapes. The Indicated portion is 3,391kt at 3.15 g/t Au and 77.8 g/t Ag for 464koz AuEq, and the Inferred portion is 1,436kt at 2.23 g/t Au and 73.6 g/t Ag for 151koz AuEq.

A Scoping Study/Preliminary Economic Assessment has commenced and is targeted for early 2027, while permitting work progresses. Post-resource drilling at Target 1 returned 13.45m at 1.55 g/t Au from 30.4m in hole LS26-008. At Target 5, hole MA26-002 extended the discovery 150m northwest.

Corporate Position and Upcoming Activities

Mithril held A$4.1 million in cash at 30 September 2026 and is debt free. Exploration expenditure was A$2.58 million for the quarter, and the company received Mexican VAT refunds of about A$270,000. It plans to rely on existing cash and future capital raising.

Mithril holds 50% of Copalquin with an option to acquire the remaining 50% for US$10 million by August 2028, and a four-year option to acquire 100% of La Dura. Upcoming work includes Target 4 results, 2027 drilling plans, completion of the Target 1 PEA and preparation for drilling at La Dura. The AGM is scheduled for 27 November 2026.

Key Takeaways

Target 4 has delivered high-grade results and could become the next resource area.
The Target 1 Scoping Study is a key milestone expected in early 2027.
The 25,000m 2026 drilling program is nearing completion.
Future capital raising is expected to support ongoing exploration.

FAQs

Q: What did Target 4 drilling return?

A: Wide, high-grade silver-gold mineralisation, including 11.70m at 456 g/t AgEq in CO26-001.

Q: When will the Target 1 PEA be completed?

A: It is targeted for early 2027.

Q: What is the Target 1 Indicated resource?

A: 3,391kt at 3.15 g/t Au and 77.8 g/t Ag for 464koz AuEq.

Q: How much cash does Mithril hold?

A: A$4.1 million at 30 September 2026, with no debt.

Q: Where are Mithril's projects located?

A: In Durango State, Mexico.

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