Monday, March 5th, 2012 - Mithril Resources
Base metals explorer Mithril Resources Ltd (ASX:MTH) advises that field work for 2012 is scheduled to commence in early March across a new generation of iron-oxide-copper-gold (‘IOCG’) targets at its Huckitta Project in the Northern Territory with drilling due to get underway in May.

Mithril’s work program at its East Pilbara Project in Western Australia will also be underway in the coming weeks with the commencement of drilling scheduled for April.

“The 2012 field season is about to commence on two of our key projects, with drilling planned on a number of priority targets in the next six months,” said Mithril Resources Managing Director Graham Ascough.

“We are well resourced with an excellent team in place and a healthy cash balance and look forward to testing and reporting results from these projects over the next 6 months.”

At Huckitta, exploration activities will focus on the recently identified Illogwa iron-oxide-copper-gold (‘IOCG’) area located approximately 20km south of the Basil Copper Prospect (Figure 1).

Illogwa consists of the Austin, Bigglesworth, and Powers IOCG prospects where Mithril has identified copper and gold mineralisation associated with extensive iron-oxide alteration. The setting has similarities to the Cloncurry IOCG district in Queensland that hosts a number of significant copper deposits.

The IOCG prospectivity of the Huckitta Project has only recently been recognised through regional surface mapping and sampling programs completed in 2011. This work has initiated a new generation of targets for the Huckitta Project. This style of mineralisation presents a new focus for the Company in the region and is quite different to the mineralisation observed along the 10km long Basil copper trend.

As previously reported, surface samples have returned high levels of copper associated with highly anomalous values of gold and silver at the Bigglesworth Prospect. At Austin,* surface geophysics (IP) has identified anomalous responses coincident with a magnetic anomaly sourced directly beneath outcropping copper mineralisation and iron-oxide alteration.

Mineralised samples from both Austin and Bigglesworth were taken over a broad area and are generally associated with outcrops of silica and hematite-altered granites consistent with an IOCG mineralising system. Mithril plans to drill both prospects in 2012.

Initial field work will include follow-up of surface copper geochemical anomalies, identified from a regional soil sampling program, and a detailed airborne geophysical (magnetic) survey (Figure 2). It is likely that further areas for drill testing will be identified, additional to the drill targets already generated at the Austin and Bigglesworth Prospects.

Regional Drill Targets

Regional exploration activities in 2011 at Huckitta have advanced four targets for deeper drilling to be completed in 2012 (Figure 1). Results from regional drilling on three of these targets indicate elevated base metal (copper/zinc) values coincident with VTEM geophysical anomalies. Drilling is also planned to test the Yoda gold prospect where grab samples returned up to 21g/t gold associated with a ground geophysical (IP) anomaly.

Basil Copper Prospect

A JORC code compliant inferred resource estimate for the Rotten Hill and Peaks zones of the Basil Copper Prospect is currently being produced by Mining Plus, a mining consulting group operating in Australia and overseas. This estimate is expected to be finalised in the coming weeks and will be released to the market following delivery of the consultant’s report.

Geophysical modelling of the Basil Prospect is also underway. Combined with the resource model, it is expected that discernible vectors towards higher-grade mineralisation may be apparent. Further drilling at Basil, both within and outside the resource area, will depend on these results.

MMG Nickel Joint Venture


MMG Exploration Pty Ltd (MMG) plans to commence exploration activities for nickel at Huckitta in early April. MMG has identified over 10 targets for ground follow-up (including mapping and geophysical surveys) to advance these targets to a drill stage in 2012 (Figure 3). MMG is a wholly owned subsidiary of Minmetals Resources Limited (HKSE 1208), an international upstream base metals company that entered into a farm-in joint venture for nickel-only on selected 100% owned Mithril tenements at Huckitta. Under the joint venture, Mithril retains the rights to all non-nickel related minerals. More details on the joint venture can be found in Mithril’s ASX release of 27 September 2011.

East Pilbara Project


Targets generated in 2011 for the Talga East and the Gorge Prospects have now been heritage cleared for drilling activities. Drilling is scheduled to commence in April 2012 (Figure 4). Geological mapping and geochemical sampling will continue during the year, with a focus on VTEM conductors (situated east of the Gorge Prospect) not field checked in 2011.

At Huckitta, exploration activities will focus on the recently identified Illogwa iron-oxide-copper-gold (‘IOCG’) area located approximately 20km south of the Basil Copper Prospect (Figure 1).

Illogwa consists of the Austin, Bigglesworth, and Powers IOCG prospects where Mithril has identified copper and gold mineralisation associated with extensive iron-oxide alteration. The setting has similarities to the Cloncurry IOCG district in Queensland that hosts a number of significant copper deposits.

The IOCG prospectivity of the Huckitta Project has only recently been recognised through regional surface mapping and sampling programs completed in 2011. This work has initiated a new generation of targets for the Huckitta Project. This style of mineralisation presents a new focus for the Company in the region and is quite different to the mineralisation observed along the 10km long Basil copper trend.

As previously reported, surface samples have returned high levels of copper associated with highly anomalous values of gold and silver at the Bigglesworth Prospect. At Austin,* surface geophysics (IP) has identified anomalous responses coincident with a magnetic anomaly sourced directly beneath outcropping copper mineralisation and iron-oxide alteration.

Mineralised samples from both Austin and Bigglesworth were taken over a broad area and are generally associated with outcrops of silica and hematite-altered granites consistent with an IOCG mineralising system. Mithril plans to drill both prospects in 2012.

Initial field work will include follow-up of surface copper geochemical anomalies, identified from a regional soil sampling program, and a detailed airborne geophysical (magnetic) survey (Figure 2). It is likely that further areas for drill testing will be identified, additional to the drill targets already generated at the Austin and Bigglesworth Prospects.

Regional Drill Targets


Regional exploration activities in 2011 at Huckitta have advanced four targets for deeper drilling to be completed in 2012 (Figure 1). Results from regional drilling on three of these targets indicate elevated base metal (copper/zinc) values coincident with VTEM geophysical anomalies. Drilling is also planned to test the Yoda gold prospect where grab samples returned up to 21g/t gold associated with a ground geophysical (IP) anomaly.

Basil Copper Prospect

A JORC code compliant inferred resource estimate for the Rotten Hill and Peaks zones of the Basil Copper Prospect is currently being produced by Mining Plus, a mining consulting group operating in Australia and overseas. This estimate is expected to be finalised in the coming weeks and will be released to the market following delivery of the consultant’s report.

*The Austin Prospect is located on EL25643 where Mithril may earn an 80% interest under a joint venture with Sammy Resources Pty Ltd, a wholly owned subsidiary of ASX-listed Cazaly Resources Ltd (ASX:CAZ).
Contacts

Graham Ascough - phone: 08 8378 8200
email: [email protected]
website: http://www.mithrilresources.com.au

Richard Sproull
phone: (08) 8267 6888
email: [email protected]

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Contact Profile

Graham Ascough

P: 08 8378 8200
W: www.mithrilresources.com.au

Keywords

IOCG, nickel, gold, hukitta

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