MTH to drill two new gold-silver targets this quarter

Our Investment Mithril Silver and Gold (ASX: MTH) just put out an exploration update on its project in Mexico.

MTH’s project has a 373Koz gold and 11Moz silver JORC resource.

MTH’s resource grades average around 4.8g/t gold and 141g/t silver - which are seriously high grades.

AND MTH is currently drilling with two rigs to double its resource size.

Today, MTH confirmed that drilling on two new targets would start this quarter.

Across those two targets, we are hoping MTH can make new discoveries that multiply its existing JORC resource estimate.

MTH’s current resource sits in just “Target Area 1” shown in blue below, the three red circles in the image below (Target Areas 2, 3 and 5) is where MTH is hoping they can discover and prove more million ounce deposits.

(Drilling at Targets 3 and 5 is scheduled to start this quarter)

Some of our key takeaways from today’s announcement:

1. Target 5 is getting bigger - Here, MTH has been sampling around a ~130m underground adit which sat across parallel veins that ran over ~500m in length and were ~1.6km wide. Today’s announcement showed how much more MTH has mapped since it’s last announcement.

2. Target 3 is also getting bigger - Here MTH is working with a theory that mineralisation extends from the target area out to an old mine shaft to the west of the project. (We are assuming the old miners went that far up because they saw and mined something they liked)

3. MTH is still drilling at Target 1 - 6 of the 9 drillholes MTH announced today “intersected mineralized quartz veins” with grades up to 4.07g/t gold and silver up to 328g/t.

We were just on a site visit for MTH:

We were on an MTH site visit a few weeks ago.

Here is a GIF of us landing on an airstrip on the side of a mountain…

And some pictures from the site visit:

We got to go through some of the historical workings from the last 100 years dotted across MTH’s land holding, where old timers have mined out gold and silver:

Check out our full site visit write up here: Silver price breakout during our MTH Silver and Gold Site visit

What’s next for MTH?

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

🔄 Additional assays (Target 1)

In the March quarterly report we noticed MTH mention that drilling was ongoing for targets at depth around Target 1.

In an announcement a few weeks back, MTH said these assays were pending.

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.

Here is the section we want to see MTH hit high grade silver/gold:

🔲 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 area 1.

🔲 Drilling at regional targets

Next we want to see MTH start drilling Targets 3 & 5.

MTH said in today’s announcement that drilling would start this quarter.