MTH samples 4,520g/t silver - 3rd drill rig ready to go in early January

Published 02-DEC-2025 12:20 P.M.

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Our Investment Mithril Silver and Gold (ASX: MTH) released an exploration update confirming that its project would be ready for a third rig in early January next year…

(Source)

MTH is currently drilling its project with two rigs.

The first rig is drilling extensions to MTH’s existing resource (looking to double that to ~1M ounces of gold equivalent).

Currently, the resource here sits at 373k ounce gold, 11M ounce silver JORC resource estimate.

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

The second rig is drilling at MTH’s Target 5 area which has so far produced the highest grade silver samples - yesterday’s announcement had a sample taken over 0.6m at 38.3g/t gold and 4,520g/t silver.

We think any silver grades like that in drilling results (which are pending right now) could really get market interest in MTH going again…

(assays are currently pending for ~13 holes from Target 5)

Especially with silver now breaking out into all time highs this morning:

(Source)

Here is how the samples from Target 5 compare to samples from Target 1 and Target 3.

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Another thing we noticed in yesterday’s announcement, which may have been missed by the broader market was the “ongoing petrographic work” (studying rocks at a microscopic level) which MTH says is confirming its district scale model over a vertical extent of 1,200m.

(Source)

We have written about this vertical extent theory before here: MTH Silver and Gold : First Target Area 5 drill holes completed.. results any day now?

Basically - the “district scale” refers to the potential for an entire mineralised system to be hosted inside MTH’s block.

Usually, company making assets can be a single part of a larger system, i.e the upper epithermal zone of a larger system…

The image below is a good way to visualise what MTH is trying to explain when it talks about “vertical extent”:

At the moment MTH’s project sits across ~8km and covers ~1,200m of vertical extent.

(Source)

It’s possible (but no guarantee) that MTH could be sitting on a geological structure similar to Fruta Del Norte in Ecuador, which hosts a ~13-14M ounce gold equivalent resource…

MTH’s MD John Skeet and Arlington Capital’s Simon Catt actually spoke to this idea in an interview a few months ago here (starts at ~7:00).

At the same time a discovery of this magnitude is no guarantee to occur - the exploration theory is untested and unproven. Investing success is never a guarantee in small cap mining stocks.

For anyone who isn't familiar with Fruta Del Norte - it was discovered by a junior in 2005-2006 and ended up an almost 100 bagger for the pre-discovery investors…

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Also check out this X post for a good summary of the Fruta Del Norte story.

Third drill rig scheduled for next month

MTH confirmed that with site preparation works at Target 3 complete, that the drill rig is lined up to begin next month in January - “commencing early January 2026” (Source).

Overall MTH is aiming to grow the current resource estimate to ~2.5-3M ounces gold equivalent over the next 12-14 months:

(Source)

Check out the following interview with MTH’s MD John Skeet and technical advisor Colin Jones where they talk about what’s happening on site right now.

At 13:41 in that video above director Colin Jones says “I’d be very disappointed if we were sitting here next year and we don't have the whole epithermal field interpreted accurately”.

MTH has so far only drilled a tiny fraction of the project, with the current resource only covering ~5% of the project area.

So we should see a fair bit of exploration newsflow over the coming 12 months from MTH.

(Check out the full interview here)

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.