Tuesday, May 22nd, 2012 - Mithril Resources Ltd
Base metals explorer Mithril Resources Ltd (“Mithril”/ The Company) is pleased to advise that assay results from surface sampling at the new El Gordo iron-oxide-copper-gold (IOCG) prospect have returned highly anomalous copper, gold and silver values. The El Gordo Prospect* is located 20km southeast from the Austin Prospect (Figure 1) on the Company’s Huckitta project in the Northern Territory.

The results from eight grab samples taken from mineralised surface outcrops over a 700m strike extent at El Gordo have returned copper values ranging from 0.7% to 12.6%, gold values ranging from 0.1g/t to 1.0gpt and silver values of 1.6gpt to 12.5gpt. The results offer further confirmation that a large scale copper-gold mineralising system is present in the Illogwa area of the Huckitta Project. Mapping and sampling is on-going in the area and further assays are pending.

In addition, a number of new mineral occurrences have been identified in recent mapping in the vicinity of El Gordo and Austin (Figure 1). Visible copper mineralisation has been observed at each prospect and assays are pending from grab and rock chip samples collected. The largest new target identified to date is located 1.5km from El Gordo (Figure 2). It has been mapped at surface over a strike length of 600m and the mineralisation and associated alteration varies in thickness from a few metres to tens of metres.

Drilling will test these prospects at shallow depths in June along with the Austin and Bigglesworth targets outlined in previous announcements. Deeper drilling of the most prospective targets will follow in July.

“The mapping and sampling program at the Illogwa IOCG area has been very successful and in the past week we have identified new mineralisation in outcrop on an almost daily basis,” said Graham Ascough, Mithril Resources’ Managing Director.

“This is encouraging and the mapping program is ongoing.”

Funding Secured through the NT Government’s Collaboration Program

Mithril is a successful applicant to the Northern Territory Geological Survey’s Geophysical and Drilling Collaborations program. The Company has been advised by Alister Trier, Executive Director, Minerals and Energy that the project will be offered up to $100,000 to co-fund drilling costs on the lllogwa Project. The Geophysics and Drilling Collaborations program is administered by the Northern Territory Geological Survey and provides co-funding assistance to selected companies for exploration drilling and geophysical acquisition projects in greenfields areas. Mithril was one of ten successful applicants for the 2012-2013 round of co-funding.

East Pilbara


Drilling at the East Pilbara Project in Western Australia will target base metals at the Talga East and Gorge prospect areas and is expected to commence in the second week of June . The initial drillholes will test conductive bodies beneath outcropping copper mineralisation at the East Talga Prospects (Figure 4).

“With a strong cash position and an excellent team in place we are well placed to test the exciting targets currently being outlined in the Illogwa area as well as those in the East Pilbara,” Mr Ascough said. “We look forward to providing investors with further updates as results become available.”

*The Austin Prospect and El Gordo prospects are 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).

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Mithril Resources Ltd


Mithril Resources Ltd is an Australian exploration company focused on the discovery and development of base metal deposits - primarily nickel and copper. Mithril is a frontier explorer in the Northern Territory and Western Australia, with an experienced team operating out of Adelaide.

Contacts

Graham Ascough
phone: 08 8378 8200
email: [email protected]

Richard Sproull
phone: (08) 8267 6888
mobile: 0418 585517

Kristy MacFarlane
phone: (08) 8267 6888
mobile: 0402 557 527
Richard Sproull, Michels Warren Public Relations
P: (08) 8267 6888
M: 0418 585517
W: www.mithrilresources.com.au

Keywords

copper gold, mining industry Australia, Adelaide

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