Next Investors logo grey

MTH hits high grade gold and silver from diamond saw


Published 12-JUN-2024 12:11 P.M.


3 min read

Shares Held: 3,790,000


Options Held: 1,895,000




Trust Centre

Today, our gold-silver explorer and developer Mithril Resources (ASX: MTH) announced excellent gold and silver assays from its diamond saw channel sample results at its project in Mexico.

This diamond saw work shapes as a strong prelude to drilling assays from a 4,000m program - and should help hone in on future targets for MTH to drill.

Some of the headline, highest grade results included:

Cometa 2 - 1.0m @ 1.74 g/t gold, 914 g/t silver) (yellow highlight below)

And Cometa 480 - 10.5m @ 4.47 g/t gold, 121 g/t silver (yellow highlight below)

As well as at the El Refugio mine – second level area of:

2.0m @ 39.2 g/t gold, 401 g/t silver (L30), including 1.0m @ 70.7 g/t gold, 710 g/t silver (red highlight below)

This is exceptionally high grade gold and silver.

Next Investors Image

Importantly, previous drilling into a northwest trending structure at El Cometa intercepted very high-grade near surface (CDH-072 6.8m @74 g/t gold, 840 g/t silver from 35.2m).

This extends MTH’s knowledge of its ground in Mexico - we already knew there was a pre-existing east west trend at the project and we think today’s results bode well for the current drilling campaign which is underway as we speak.

Next Investors Image

MTH: Drilling Commences as Silver Price Tests Decade Highs

MTH has commenced a 4,000m drill program to uncover what was left behind for all those years...

MTH is drilling in two key areas:

1. Drilling in and around the JORC resource - here MTH will be looking to confirm what they already have and drill down at depths to extend the existing JORC resource.

Ultimately, MTH’s goal is to double its current 373k ounce gold & 10.9M ounce silver JORC resource).

Next Investors Image

2. Following up the high grade hits from 2020 and 2021 - MTH will be following up the high grade hits from previous holes where grades were as high as ~80.3g/t gold and 3,129g/t silver. These could get the market interested if MTH can get similar results...

Next Investors Image

There is also a third prong to MTH’s drilling work as well…

3. Drilling across other prospects chasing new discoveries - This is more exploration based drilling, and drill targets will become more clear as geophysics data from a recent LiDAR survey is interpreted.

Next Investors Image

The main target for this round of drilling is to extend the existing JORC resource.

Anything more, including new discoveries will be an unexpected surprise for us.

MTH’s target is to double the existing resource by the end of this year.

The gold price has taken a breather after a strong run:

Next Investors Image

And the silver price remains sharply elevated:

Next Investors Image

We think any additional uplift in the prices of gold and silver will likely contribute to the market’s appreciation of MTH’s upcoming drill results - should they come in with more high grade gold and silver.

What’s next for MTH?

🔄 Drill results from 4,000m program

With drilling about to start we are hoping MTH can replicate the high grade hits from 2020 and 2021.

If MTH can put out the silver grades in the thousands of grams per tonne or gold grades in the high teens we think the market could react by re-rating MTH’s share price higher.

The focus for the first round of drilling will be on the area where MTH already has a JORC resource so we are hopeful the drill results come in strong.

Next Investors Image

🔲 Exploration Drilling Targets Identified

MTH recently did some LiDAR and Magnetic surveying on its project.

The goal of that program was to rank new drill targets across its project.

We are also looking forward to these results, primarily because these could help MTH deliver new discoveries on top of the area where its existing JORC resource sits.

Next Investors Image