Mithril Resources (ASX:MTH) will in 2023 work to expand the resource and assess development scenarios at its 100% optioned Copalquin Gold Silver Project in Mexico.
The company recently released exploration results for the Copalquin Gold Silver Project, where a maiden 529,000oz gold equivalent ‘high-grade’ gold-silver JORC resource has been defined at El Refugio-La Soledad.
Speaking to Mining.com.au on the sidelines of the International Mining and Resources Conference (IMARC) in Sydney today (2 November), Managing Director and CEO John Skeet said within just 15 months of drilling in the Copalquin district, Mithril delivered its maiden JORC Mineral Resource Estimate (MRE).
“What we have in Mexico is a district-scale property of 70 square kilometres and this is just the first target area in the district, and we have other very high-level targets in the district to expand the resource base.
“Clearly this will be a mine one day”
Drilling started in 2020 and it we have already produced a high-grade maiden JORC resource. We’re doing appropriate study work around that and also looking to expand it considerably including into other parts of the district.
Clearly this will be a mine one day.”
Skeet notes that Mithril’s Copalquin district has been consistent with modern exploration and has been the company’s focus since July 2020. He says the maiden JORC resource was the ‘highest grade’ maiden resource released for Mexico in 2021 (6.81g/t Au-Eq).
Copalquin also has simple metallurgy in which has so far had 96% gold and 91% silver recoveries.
The CEO adds that there is potential for resource growth and expansion of the El Refugio resource along west and east, as well as significant depth potential confirmed by recent drilling and petrography.
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.
Considering Mexico is a top 10 producer for gold, silver, lead, copper, and zinc and in 2021 was once again the world’s leading silver-producing country, the CEO says the project is demonstrating the ‘high-grade’ gold and silver resource potential for the district.
Skeet adds: “I’m very comfortable operating in Mexico and over the time I’ve been there it’s been nothing but positive experiences. That’s why I was keen to go and put my own money into it in 2017 to pick up this property.
Mexico has a very strong mining industry and history. It has a well-developed mining industry and they tend to take on world-best mining practices in developing their mining laws so it’s an incredibly good place to be working.”
Skeet in 2017 acquired the option to purchase the Copalquin district concessions in Mexico, foreseeing the potential of the region.
Last month, Mithril reported recent drilling, core relogging, and petrography confirm further resource expansion upside at El Refugio within the Copalquin district. Drill core observations, supported by recent petrographic work, support considerable depth extension to the El Refugio hydrothermal system.
The geologic work supports understanding for the ‘high-grade’ drill intercepts deep (CDH-077) and peripheral (CDH-094) to the main El Refugio resource:
- 8.26m @ 80.3g/t gold, 705g/t silver from 468.34m (CDH-077).
- 18.67m @ 9.64 g/t gold, 278.8 g/t silver from 144.0m, (CDH-094).
Skeet notes that deeper and peripheral to the breccia zone, drilling will target veins like those intercepted by holes CDH-077 and CDH-094.
The CEO adds that there is a lot of upside for this type of resource as it will be a low capex operation with high metal production from ‘high-grade’ underground mining. It will also have a small development footprint.
While Mithril is the only ASX-listed company with such a ‘high-grade’ and advanced project in Mexico, there are many majors active in region, most of which are North American companies. These include Agnico Eagle Mines (NYSE:AEM), First Majestic Silver Corp. (NYSE:AG), and Pan American Silver Corp. (NASDAQ:PAAS).
The Copalquin mining district is located in Durango State, Mexico and covers an entire mining district of 70km-square containing several dozen historic gold and silver mines and workings, 10 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.
In 2021, Mexico was once again crowned the world’s leading silver-producing country, based on the latest data from the US Geological Survey. Global silver production increased marginally for the period, rising to 24,000 metric tonnes (MT) due to a return to production in key countries following shutdowns during the COVID-19 pandemic.
Skeet has more than 30 years’ experience in gold-silver mine development in which about 20 years have been spent in Mexico. He led the development of Ballarat East, Quartzite Gold in Georgia, and the Palmarejo Silver Gold Mine in Mexico.
Write to Adam Orlando at Mining.com.au
Images: Mithril Resources Ltd
