Tuesday, August 14th, 2012 - Mithril Resources Ltd
Adelaide, SA: Base metals explorer Mithril Resources Ltd (ASX: MTH) is pleased to advise that it has earned an 80% interest in the Illogwa IOCG Target Area tenements under the Sammy Joint Venture by completing expenditure of $2 million.

Illogwa is located on Mithril’s Huckitta Project, approximately 150 kilometres east of Alice Springs, Northern Territory (Figure 1) and lies within three tenements, two of which (ELs 25643 and 25653) are subject to a joint venture with Sammy Resources Pty Ltd (‘Sammy’), a wholly owned subsidiary of ASX-listed Cazaly Resources Ltd (ASX: CAZ).

Mithril has notified Sammy that the earn-in expenditure under the agreement has been completed and Sammy now has 60 days to elect to contribute pro-rata on expenditure going forward or revert to a 1.5% Net Smelter Returns royalty, leaving Mithril with a 100% interest in the project.

As previously announced (ASX Announcement dated 7 August 2012), Mithril has recently commenced a 3,800 metre program of air core, reverse circulation and diamond drilling as the first ever test of four priority drill targets, as well as multiple conceptual geophysical targets.

Each of the priority drill targets has significant outcropping copper mineralisation and associated alteration.

Illogwa represents a newly recognised Proterozoic copper–gold province characterised by a 50 kilometre long belt of structurally deformed granite and sedimentary sequences that contain variable amounts of quartz veining, strong iron and fluorite alteration, and outcropping copper - gold mineralisation.

First results from the drilling are expected by late August 2012 and the Company looks forward to informing the market as they come to hand.

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 full?time 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.

Contact Profile

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

Richard Sproull
phone: (08) 8267 6888
mobile: 0418 585517
email: [email protected]

David Hutton, Managing Director, Mithril Resources
P: 08 8378 8200
W: www.mithrilresources.com.au

Keywords

Illogwa IOCG Target Area tenements under the Sammy Joint Venture

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