Cazaly to contribute 20% of ongoing expenditure at Illogwa
Further to its ASX release of 14 August 2012, Mithril Resources Ltd (ASX: MTH) is pleased to advise that its joint venture partner Cazaly Resources Ltd (ASX: CAZ), through its wholly owned subsidiary Sammy Resources Pty Ltd, will contribute pro-rata to ongoing expenditure in order to maintain its 20% interest in the joint venture in the Illogwa Iron Oxide Copper Gold (IOCG) Target Area.
Illogwa is located on the Company’s Huckitta Project approximately 150 kilometres east of Alice Springs, Northern Territory and lies within three tenements, two of which (ELs 25643 and 25653) are subject to a joint venture between Mithril Resources (80%) and Sammy Resources Pty Ltd (20. The third tenement is wholly owned by Mithril.
Mithril is the operator of the joint venture and has recently earned its 80% interest by completing expenditure of $2 million.
Under the terms of the agreement, Sammy had 60 days from Mithril earning its 80% interest, to elect to contribute pro-rata on ongoing expenditure (and maintain its 20% interest) or revert to a 1.5% Net Smelter Returns royalty, leaving Mithril with a 100% interest in the project.
As previously announced, drilling is continuing at Illogwa, where the Company has recently confirmed the presence of a potentially significant iron oxide copper gold mineralised system, ahead of a regional VTEM survey commencing early September 2012.
Competent Persons Statement:
The information in this report that relates to Exploration Results and Mineral Resources
is based on information compiled by Mr David Hutton (Managing Director), who is a fulltime employee of the Company and a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr D Hutton has more than five years’ experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
Mr Hutton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.