Mithril Lidar Study Reveals 1.5 Km Trend And Historic Mines At La Dura Gold-Silver Project, Durango, Mexico

Tonnes

(kt)

Tonnes

(kt)

Gold

(g/t)

Silver

(g/t)

Gold Eq.* (g/t)

Gold

(koz)

Silver

(koz)

Gold Eq.* (koz)

El Refugio

Indicated

691

5.43

114.2

7.06

121

2,538

157

Inferred

1,447

4.63

137.1

6.59

215

6,377

307

La Soledad

Indicated

-

-

-

-

-

-

-

Inferred

278

4.12

228.2

7.38

37

2,037

66

Total

Indicated

691

5.43

114.2

7.06

121

2,538

157

Inferred

1,725

4.55

151.7

6.72

252

8,414

372

John Skeet

Managing Director and CEO

jskeet@mithrilsilvergold.com

+61 435 766 809

NIKLI COMMUNICATIONS

Corporate Communications

liz@mithrilsilvergold.com

nicole@mithrilsilvergold.com

Criteria

JORC Code explanation

Commentary

Sampling techniques

• Nature and quality of sampling (eg cut channels, randomchips, or specific specialised industry standard measurement toolsappropriate to the minerals under investigation, such as down holegamma sondes, or handheld XRF instruments, etc). These examples shouldnot be taken as limiting the broad meaning of sampling. 

• Include reference to measures taken to ensure samplerepresentativity and the appropriate calibration of any measurementtools or systems used. 

• Aspects of the determination of mineralisation that areMaterial to the Public Report. 

• In cases where ‘industry standard’ work has beendone this would be relatively simple (eg ‘reverse circulationdrilling was used to obtain 1 m samples from which 3 kg was pulverisedto produce a 30 g charge for fire assay’). In other cases moreexplanation may be required, such as where there is coarse gold thathas inherent sampling problems. Unusual commodities or mineralisationtypes (eg submarine nodules) may warrant disclosure of detailedinformation. 

• Drill core samples are cutlengthwise with a diamond saw. Intervals are nominally 1 m but mayvary between 0.5 m to 1.5 m based on geologic criteria. 

• The same side of the core is always sent to sample(left side of saw). 

• Reported intercepts are calculated as eitherpotentially underground mineable (100m down hole) or as potentiallyopen-pit mineable (near surface). 

• Potentially underground mineable intercepts arecalculated as length weighted averages of material greater than orequal to 1 g/t AuEQ_70 allowing up to 2m of internaldilution. 

• Potentially open-pit mineable intercepts are calculatedas length weighted averages of material greater than or equal to 0.25g/t AuEQ_70 allowing for up to 2m of internal dilution. 

• Rock Sawn Channel samplesunderground and surface are collected with the assistance of ahandheld portable saw. The channels are 2.5 to 3cm deep and 6-8 cmwide along continuous lines oriented perpendicular to the mineralizedstructure. The samples are as representative as possible  

• Rock Sawn Channel surface samples were surveyed with aHandheld GPS then permanently mark with an aluminium tag and redcolour spray across the strike of the outcrop over 1 metre. Samplesare as representative as possible 

• Rock Sawn Channel underground samples were locatedafter a compass and tape with the mine working having a surveyedcontrol point at the portal, then permanently marked with an aluminiumtag and red colour spray oriented perpendicular to the mineralizedstructure. Samples are as representative as possible 

• Soil sampling has been carriedout by locating pre-planned points by handheld GPS and digging tobelow the first colour-change in the soil (or a maximum of 50 cm). Inthe arid environment there is a 1 – 10 cm organic horizon and a 10– 30 cm B horizon above the regolith. Samples are sieved to -80 meshin the field. Samples are collected on a 20 m x 50 m grid or every 20m on N–S lines 50 m apart. These samples are consideredrepresentative of the medium being sampled and lines are appropriatelyoriented to the nearly E–W structural trend. 

Drilling techniques

• Drill type (eg core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc) and details (egcore diameter, triple or standard tube, depth of diamond tails,face-sampling bit or other type, whether core is oriented and if so,by what method, etc). 

• Drilling is done with MP500 man-portable core rigscapable of drilling HQ size core to depths of 350-400m (depending onground conditions), reducing to NQ size core for greater depths. Coreis recovered in a standard tube. 

Drill sample recovery

• Method of recording and assessing core and chip samplerecoveries and results assessed. 

• Measures taken to maximise sample recovery and ensurerepresentative nature of the samples. 

• Whether a relationship exists between sample recoveryand grade and whether sample bias may have occurred due topreferential loss/gain of fine/coarse material. 

• Drill recovery is measured based on measured length ofcore divided by length of drill run. 

• Recovery in holes CDH-001 through CDH-025 and holesCDH-032 through CDH-077 was always above 90% in the mineralized zones.Detailed core recovery data are maintained in the projectdatabase. 

• Holes CDH-026 through CDH-031 had problems with corerecovery in highly fractured, clay rich breccia zones. 

• There is no adverse relationship between recovery andgrade identified to date. 

Logging

• Whether core and chip samples have been geologicallyand geotechnically logged to a level of detail to support appropriateMineral Resource estimation, mining studies and metallurgicalstudies. 

• Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc) photography. 

• The total length and percentage of the relevantintersections logged. 

• Geotechnical and geological   logging of the drillcore takes place on racks in the company core shed. 

• Core samples have beengeologically and geotechnically logged to a level of detail to supportappropriate Mineral Resource estimation, mining studies andmetallurgical studies. 

• Core logging is both qualitative or quantitative innature. Photos are taken of each box of core before samples are cut.Photos of cut core intervals are taken after sampling. Core is wettedto improve visibility of features in the photos. 

• All core has been logged and photographed.  

• Rock sawn channel samples aremarked, measured and photographed at location 

• Soil samples are recorded atlocation, logged and described 

Sub-sampling techniques and sample preparation

• If core, whether cut or sawn and whether quarter, halfor all core taken. 

• If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry. 

• For all sample types, the nature, quality andappropriateness of the sample preparation technique. 

• Quality control procedures adopted for all sub-samplingstages to maximise representativity of samples. 

• Measures taken to ensure that the sampling isrepresentative of the in situ material collected, including forinstance results for field duplicate/second-half sampling. 

• Whether sample sizes are appropriate to the grain sizeof the material being sampled. 

• Core is sawn and half core is taken forsample. 

• Samples are prepared using ALS Minerals Prep-31crushing, splitting and pulverizing. This is appropriate for the typeof deposit being explored. 

• Visual review to assure that the cut core is ½ of thecore is performed to assure representativity of samples. 

• Crushed core duplicates are split/collected by thelaboratory and submitted for assay (1 in 30 samples) 

• Sample sizes are appropriate to the grain size of thematerial being sampled. 

• Rock sawn channel samples and soil samples are prepared using ALS Minerals Prep-31 crushing, splittingand pulverizing. This is appropriate for the type of deposit beingexplored. 

Quality of assay data and laboratory tests

• The nature, quality and appropriateness of the assayingand laboratory procedures used and whether the technique is consideredpartial or total. 

• For geophysical tools, spectrometers, handheld XRFinstruments, etc, the parameters used in determining the analysisincluding instrument make and model, reading times, calibrationsfactors applied and their derivation, etc. 

• Nature of quality control procedures adopted (egstandards, blanks, duplicates, external laboratory checks) and whetheracceptable levels of accuracy (ie lack of bias) and precision havebeen established. 

• Samples are assayed for gold using ALS Minerals Au-AA25method a 30 g fire assay with an AA finish. This is considered a totalassay technique. 

• Samples are assayed for silver using ALS MineralsME-ICP61 method. Over limits are assayed by silverOG63 andsilverGRAV21. These are considered a total assay technique. 

• Standards and blanks are inserted at a rate of one perevery 25 samples and one per every 40 samples, respectively.  Pulpduplicate sampling is undertaken for 3% of all samples (see above). External laboratory checks will be conducted as sufficient samplesare collected. Levels of accuracy (ie lack of bias) and precision havenot yet been established. 

• Certified Reference Materials – Rock Labs and CDNCRMs have been used throughout the project including, low (~2 g/t Au),medium (~9 g/t Au) and high (~18g/t Au and ~40 g/t Au). Results areautomatically checked on data import into the BEDROCK database to fallwithin 2 standard deviations of the expected value.  

• Samples with significant amounts of observed visiblegold are also assayed by AuSCR21, a screen assay that analyses gold inboth the milled pulp and in the residual oversize from pulverization.This has been done for holes CDH-075 and CDH-077. 

Verification of sampling and assaying

• The verification of significant intersections by eitherindependent or alternative company personnel. 

• The use of twinned holes. 

• Documentation of primary data, data entry procedures,data verification, data storage (physical and electronic)protocols. 

• Discuss any adjustment to assay data. 

• The verification of significant intersections by eitherindependent or alternative company personnel has not been conducted. Are-assay program of pulp duplicates is currently in progress. 

• MTH has drilled one twin hole. Hole CDH-072, reportedin the 15/6/2021 announcement, is a twin of holes EC-002 and UC-03.Results are comparable. 

• Documentation of primary data, data entry procedures,data verification, data storage (physical and electronic) protocolsare maintained in the company’s core facility. 

• Assay data have not been adjusted other than applyinglength weighted averages to reported intercepts. 

Location of data points

• Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mine workings andother locations used in Mineral Resource estimation. 

• Specification of the grid system used. 

• Quality and adequacy of topographic control. 

• Drill collar coordinates are currently located byhandheld GPS. Precise survey of hole locations is planned. Downholesurveys of hole deviation are recorded using a Reflex Multishot toolfor all holes.  A survey measurement is first collected at 15 metersdownhole, and then every 50 meters until the end of the hole.Locations for holes have been surveyed with differential GPS to a sub10 cm precision.  

• UTM/UPS WGS 84 zone 13 N 

• High quality topographic control from LiDAR imagery andorthophotos covers the entire project area. 

Data spacing and distribution

• Data spacing for reporting of ExplorationResults. 

• Whether the data spacing and distribution is sufficientto establish the degree of geological and grade continuity appropriatefor the Mineral Resource and Ore Reserve estimation procedure(s) andclassifications applied. 

• Whether sample compositing has been applied. 

• Data spacing is appropriate for the reporting ofExploration Results. 

• The Resource estimation re-printed in this announcementwas originally released on 17 Nov 2021 

• No sample compositing has been applied. 

Orientation of data in relation to geologicalstructure

• Whether the orientation of sampling achieves unbiasedsampling of possible structures and the extent to which this is known,considering the deposit type. 

• If the relationship between the drilling orientationand the orientation of key mineralised structures is considered tohave introduced a sampling bias, this should be assessed and reportedif material. 

• Cut lines are marked on the core by the geologists toassure that the orientation of sampling achieves unbiased sampling ofpossible structures. This is reasonably well observed in the core andis appropriate to the deposit type. 

• The relationship between the drilling orientation andthe orientation of key mineralised structures is not considered tohave introduced a sampling bias. 

• Rock sawn channel samples are cutperpendicular to the observed vein orientation whereverpossible 

Sample security

• The measures taken to ensure sample security. 

• Samples are stored in a secure core storage facilityuntil they are shipped off site by small aircraft and delivereddirectly to ALS Global sample preparation facility in Chihuahua,Mexico.  ALS airfreights the sample pulps to their assaying facilityin North Vancouver, BC, Canada 

Audits or reviews

• The results of any audits or reviews of samplingtechniques and data. 

• A review with spot checks was conducted by AMC inconjunction with the resource estimate published 17 Nov 2021. Resultswere satisfactory to AMC. 

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

• Type, reference name/number, location and ownershipincluding agreements or material issues with third parties such asjoint ventures, partnerships, overriding royalties, native titleinterests, historical sites, wilderness or national park andenvironmental settings. 

• The security of the tenure held at the time ofreporting along with any known impediments to obtaining a licence tooperate in the area. 

• Concessions at Copalquin 

Exploration done by other parties

• Acknowledgment and appraisal of exploration by otherparties. 

• Previous exploration by Bell Coast Capital Corp. and UCResources was done in the late 1990’s and in 2005 – 2007. Workdone by these companies is historic and non-JORC compliant. Mithriluses these historic data only as a general guide and will notincorporate work done by these companies in resourcemodelling. 

• Work done by the Mexican government and by IMMSA andwill be used for modelling of historic mine workings which are nowinaccessible (void model)  

Geology

• Deposit type, geological setting and style ofmineralisation. 

• Copalquin is a low sulfidation epithermal gold-silverdeposit hosted in andesite. This deposit type is common in the SierraMadre Occidental of Mexico and is characterized by quartz veins andstockworks surrounded by haloes of argillic (illite/smectite)alteration. Veins have formed as both low-angle semi-continuous lensesparallel to the contact between granodiorite and andesite and astabular veins in high-angle normal faults. Vein and breccia thicknesshas been observed up to 30 meters wide with average widths on theorder of 3 to 5 meters. The overall strike length of thesemi-continuous mineralized zone from El Gallo to Refugio, Cometa, LosPinos, Los Reyes, La Montura to Constancia and Santa Cruz is almost 7kilometres. The southern area from south west of Apomal to San Manueland to Las Brujas-El Peru provides additional exploration potential upto 6km. 

Drill hole Information

• A summary of all information material to theunderstanding of the exploration results including a tabulation of thefollowing information for all Material drill holes:  

• easting and northing of the drill hole collar
  • elevation or RL (Reduced Level – elevation above  

• sea level in metres) of the drill hole collar  

• dip and azimuth of the hole  

• down hole length and interception depth  

• hole length.  

• If the exclusion of this information is justified onthe basis that the information is not Material and this exclusion doesnot detract from the understanding of the report, the Competent Personshould clearly explain why this is the case. 

No drill results reported in theisannouncement.

Data aggregation methods

• In reporting Exploration Results, weighting averagingtechniques, maximum and/or minimum grade truncations (eg cutting ofhigh grades) and cut-off grades are usually Material and should bestated. 

• Where aggregate intercepts incorporate short lengths ofhigh grade results and longer lengths of low grade results, theprocedure used for such aggregation should be stated and some typicalexamples of such aggregations should be shown in detail. 

• The assumptions used for any reporting of metalequivalent values should be clearly stated. 

• Potentially underground mineable intercepts arecalculated as length weighted averages of material greater than orequal to 1 g/t AuEQ_70 allowing up to 2m of internaldilution. 

• Potentially open-pit mineable intercepts are calculatedas length weighted averages of material greater than or equal to 0.25g/t AuEQ_70 allowing for up to 2m of internal dilution. 

• No upper cut-off is applied to reportingintercepts. 

• Length weighted averaging is used to report intercepts.The example of CDH-002 is shown. The line of zero assays is a standardwhich was removed from reporting. 

• In determining the gold equivalent (AuEq.) grade forreporting, a gold:silver price ratio of 70:1 was determined, using theformula: AuEq grade = Au grade + ((silver grade/70) x (silverrecovery/Au recovery)). The metal prices used to determine the 70:1ratio are the cumulative average prices for 2021: gold USD1,798.34 andsilver: USD25.32 (actual is 71:1) from kitco.com  At this earlystage, the metallurgical recoveries are assumed to be equal (93%),Subsequent preliminary metallurgical test work produced recoveries of91% for silver and 96% for gold (ASX Announcement 25 February2022). 

• For Rock Saw Channel Sampling and soil sampling in theCopalquin District, silver equivalent (AgEq) isdetermined using the formula: AgEq grade = silver grade + ((Au grade x70) x (Au recovery/silver recovery)). The metal prices used todetermine the 70:1 ratio are the cumulative average prices for 2021:gold USD1,798.34 and silver: USD25.32 (actual is 71:1) fromkitco.com   At this early stage,the metallurgical recoveries for Au and silver are assumed to be equal(93%) in the absence of metallurgical test work for Targets 2, 3, 4and 5 material. In the Company’s opinion there is reasonablepotential for both gold and silver to be extracted and sold. 

Relationship between mineralisation widths andintercept lengths

• These relationships are particularly important in thereporting of Exploration Results. 

• If the geometry of the mineralisation with respect tothe drill hole angle is known, its nature should be reported. 

• If it is not known and only the down hole lengths arereported, there should be a clear statement to this effect (eg ‘downhole length, true width not known’). 

• True widths at Refugio between sections 120 and 1,000vary according to the hole’s dip. Holes drilled at -50 degrees maybe considered to have intercept lengths equal to true-widths, Holesdrilled at -70 degrees had true widths approximately 92% of thereported intercept lengths and holes drilled at -90 degrees had truewidths of 77% of the reported intercept lengths.  

• True widths at La Soledad are not fully understood anddownhole intercepts to date, are reported. 

• At Las Brujas in Target 2, true widths are not yetknown since we are still in the early stages of targetdefinition. 

• Rock sawn channel samples are cutperpendicular to the observed vein orientation whereverpossible 

Diagrams

• Appropriate maps and sections (with scales) andtabulations of intercepts should be included for any significantdiscovery being reported. These should include, but not be limited toa plan view of drill hole collar locations and appropriate sectionalviews. 

See figures in announcement

Balanced reporting

• Where comprehensive reporting of all ExplorationResults is not practicable, representative reporting of both low andhigh grades and/or widths should be practiced to avoid misleadingreporting of Exploration Results. 

• All exploration results are reported for interceptsgreater than or equal to 0.1 g/t gold equivalent (gold plus silver at70:1 price ratio for gold:silver). 

Other substantive exploration data

• Other exploration data, if meaningful and material,should be reported including (but not limited to): geologicalobservations; geophysical survey results; geochemical survey results;bulk samples – size and method of treatment; metallurgical testresults; bulk density, groundwater, geotechnical and rockcharacteristics; potential deleterious or contaminatingsubstances. 

• No additional exploration data are substantive at thistime. 

• Metallurgical test work on drill core composite made ofcrushed drill core from the El Refugio drill hole samples has beenconducted. 

• The samples used for the test work are representativeof the material that makes up the majority of the Maiden ResourceEstimate for El Refugio release on 17th November 2021. 

• The test work was conducted by SGS laboratory Mexicousing standard reagents and test equipment. 

Further work

• The nature and scale of planned further work (eg testsfor lateral extensions or depth extensions or large-scale step-outdrilling). 

• Diagrams clearly highlighting the areas of possibleextensions, including the main geological interpretations and futuredrilling areas, provided this information is not commerciallysensitive. 

• The Company drilled 148 diamond core holes from July2020 to July 2022 for 32,712 m.  The Company has stated its target todrill up to 45,000m from July 2025 until the second half of2026 

• Diagrams are included in the announcements andpresentations showing the drill target areas within the CopalquinDistrict