MTH acquires option on 4-leveled historic mine and processing plant

Published 05-DEC-2025 14:09 P.M.

3 min read

Shares Held: 2,253,336

Options Held: 2,177,000

Our Investment Mithril Silver and Gold (ASX: MTH) just added ground to its portfolio next to its silver-gold project in Mexico.

MTH acquired an option on a project under 20km from its Copalquin asset where it has an 373k ounce gold, 11M ounce silver JORC resource estimate.

AND is currently drilling its existing project with two rigs, with a 3rd rig on the way soon.

(MTH is aiming to upgrade the JORC resource by the end of the year) (source)

We covered an update on this project earlier in the week here, which covers how things are progressing with this project and what is happening in the near term..

(Source)

Today, MTH acquired an option on the La Dura Project which is here relative to its current ground:

(Source)

The new ground reminds us a lot of MTH’s Copalquin, before a discovery was made - it has several historic mines (including a 4-leveled gold-silver mine) as well as a processing facilities for 60t per day, which last operated in 2013.

Here is a picture included today from the project, which actually contains someone standing in it to show some scale, this is from the upper level of the historic mine workings:

(Source)

The project was last operated in 2013 and there is a historic database of mining records including data from sampling programs between the 1990’s and 2018.

MTH’s plan is to run LiDAR surveys on the project - LiDAR is typically used by exploration companies to map both surface and subsurface features.

This will give us a better understanding of existing workings and could locate a lot more historic mines that haven’t been picked up yet.

The LiDAR survey is expected to be done this month, with the aerial magnetic survey in early 2026, there aren’t any exploration spending commitments on the project other than these.

Hopefully after that survey, MTH finds other historic mines like the one from the image earlier.

What is MTH paying for the asset?

We like how MTH has structured the acquisition - with low upfront costs, weighted towards exploration spend and the chunkier payment only due if MTH actually decides to proceed with the acquisition.

(by which stage we would hope they know enough to decide whether or not its worth making that payment).

MTH has a 4-year option to purchase 100% of the project for US$4 million, while to retain the option, MTH is required to pay the following amounts every 6 months:

(Source)

As soon as MTH decide to complete the deal, those option extension fees get waived and MTH makes a US$4M payment (either in cash or MTH stock at the 20-day Volume Weighted Average Price - VWAP, if over $1).

The vendor can ask for shares, but MTH has the right to pay in cash if they choose.

The project also comes with a net smelter royalty of 2.5%, which can be reduced to 1% with a US$2.5M payment.

MTH expects the initial work program on the project to be covered by the minimum exploration spend requirement of US$200K over two years.

What’s next for MTH?

Over the coming months, we will have some big catalysts to look forward to:

🔄 Additional assays (Target 1)

We are looking forward to those results. Any hint of high grade mineralisation could add to MTH’s eventual resource upgrade in a big way.

🔲 Double the existing JORC resource

We want to see MTH get close to a doubling of its current JORC resource.

This should come once MTH has officially declared a cut-off for its drilling at Target 1.

🔄 Drilling assays (Target 5)

MTH confirmed in this announcement an additional 8 holes have been completed (totalling 21) and that assays are pending (for the remaining 13) so we could get results from our favourite target area soon.