Key Highlights

  • First systematic drilling at Target 4 confirmed mineralisation over 550 metres of strike and 200 metres vertically, with the structure still open.
  • Hole CO26-001 returned 11.70 metres at 456 g/t silver equivalent, and two drills remain active with assays pending.
  • Cash was about A$4.13 million, down from A$7.26 million, with funding of about 1.3 quarters estimated.

Mithril Silver and Gold Limited (ASX:MTH) reported in its September 2026 quarterly that first systematic drilling on the Copalquin-Zaragoza Structure, known as Target 4, has confirmed mineralisation over 550 metres of strike and 200 metres vertically. The company said the structure remains open, with about 400 metres of strike to the northwest toward Target 1 and 600 metres to the southeast toward San Manuel still to be tested. Two drills remain active there and assays are pending.

Target 4 intercepts

Mithril reported results as silver equivalent (AgEq) grades. Hole CO26-001 returned 11.70 metres at 456 grams per tonne AgEq from 22.0 metres, including 0.60 metres at 3,877 grams per tonne. CO26-002 returned 13.95 metres at 387 grams per tonne from 88.85 metres, including 1.00 metre at 1,747 grams per tonne, and CO26-003 returned 6.50 metres at 320 grams per tonne from 93.4 metres, including 0.50 metres at 1,890 grams per tonne.

The equivalent figures use prices of US$3,300 per ounce for gold and US$50 per ounce for silver, with recoveries of 96 per cent for gold and 91 per cent for silver. Low-grade zinc, lead and copper were found in the Target 4 holes but are excluded from the calculations. All intervals are downhole lengths and true widths have not yet been established.

Other drilling

At Target 5, known as La Maquina, hole MA26-002 returned 0.50 metres at 12.20 grams per tonne gold and 848 grams per tonne silver from 168.25 metres, which the company said extends the discovery 150 metres to the northwest. Narrow intercepts came from Las Lianas and El Apomal, including base-metal zones at El Apomal.

Drilling around the Target 1 resource included 13.45 metres at 1.55 grams per tonne gold and 16.6 grams per tonne silver from 30.4 metres in hole LS26-008 at La Soledad, and 0.55 metres at 7.54 grams per tonne gold from 404.95 metres at El Refugio. Western holes at El Gallo, La Guacima and El Platano had no reportable grades.

Target 1 resource and studies

The upgraded Target 1 Mineral Resource, effective 29 June 2026, comprises 3.39 million tonnes Indicated at 4.26 grams per tonne gold equivalent for 464,000 ounces, and 1.44 million tonnes Inferred at 3.28 grams per tonne for 151,000 ounces. About 75 per cent of the contained metal is in the Indicated category. The NI 43-101 technical report was filed on SEDAR+ on 17 August 2026. A Scoping Study and preliminary economic assessment has begun, with results targeted for early 2027, and permitting work is continuing.

The company also holds an option over the 20 square kilometre La Dura property, under which it can acquire 100 per cent for US$4 million over four years. An aerial magnetic survey is complete and drilling is planned as early as 2027. At Copalquin, Mithril holds 50 per cent and has an option to buy the remaining 50 per cent for US$10 million by 7 August 2028.

Cash and next steps

Cash at 30 September 2026 was about A$4.13 million, down from about A$7.26 million, with no debt. Operating outflow was about A$0.54 million and exploration spending about A$2.58 million. The company estimated funding of about 1.3 quarters at the current rate and said it plans to rely on existing cash plus future raisings under its ASX placement capacity.

Mithril intends to finish its 25,000-metre 2026 drill program in late October 2026 and then report Target 4 results. It also plans to advance the Target 1 assessment and permitting, prepare drilling for La Dura, Targets 3 and 5 and Cucaracha in 2027, and hold its annual general meeting on 27 November 2026. The company noted that the studies are not complete and outcomes are uncertain.