Thursday, October 25th, 2012 - Mithril Resources Ltd

Mithril Resources Managing Director David Hutton says the results of ongoing data review and field reconnaissance have reinforced the prospectivity of the Company’s 100%-owned Yambah Project in the Northern Territory.

Mithril Resources Ltd (ASX: MTH) is pleased to advise that the results of ongoing data review and field reconnaissance reinforce the prospectivity of the Company’s 100%-owned Yambah Project, which is adjacent to the Alice Springs – Darwin railway and approximately 80km north and east of Alice Springs in the Northern Territory (Figure 1).

Four prospects (Turners, Harry Creek, Gecko, and Red Rock Bore) containing significant gold and/or base metal mineralisation and offering excellent exploration potential have now been identified.

The prospects have not been subject to recent exploration techniques and are characterised by minimal historical drilling and geophysical testing.

Field activities at Yambah are being carried out in conjunction with the Company’s ongoing activities on the Illogwa IOCG Target Area (Huckitta Project), approximately 150 kilometres east of Yambah, with the aim of developing a robust pipeline of priority drill targets throughout the combined project area.

The 1,100 kms² Yambah Project is prospective for Volcanic Massive Sulphide (VMS) – hosted base metal mineralisation and structurally – controlled gold mineralisation.

Together with the adjacent 5,100 kms² Huckitta Project (Figure 2), the combined projects represent a significant greenfields exploration portfolio within the rapidly emerging, and relatively underexplored Eastern Arunta Province of the Northern Territory.

Other significant mineral occurrences within the province includes the Company’s Basil Copper Deposit (Inferred Resource of 26.5Mt @ 0.57% copper, 0.05% cobalt), Kentor Gold’s (ASX: KGL) Jervois Copper – Silver – Gold Project, and Kidman Resources’ (ASX: KDR) Home of Bullion Copper Project.

Identified prospects

At the Turners prospect, an east – west trending zone of narrow (≤ 2 metres true width) mineralised quartz veins and associated alteration is present within three small historic prospecting pits over approximately 30 metres strike length. The prospect has not been drilled and whether the mineralisation continues beyond the pits is unclear due to soil cover. Grab sampling of the mineralisation returned two significant results:

* Sample 87111 – 15.65% copper, 26.1g/t silver, and 1.19g/t gold, and sample 87112 – 11.85% copper, 34.4g/t silver, and 36.8g/t gold.

At Gecko, geological mapping by previous explorers has identified sporadically - outcropping copper mineralisation over 400 metres (≤ 5 metres true width) associated with a quartz – magnetite horizon. Historic reports suggest that four percussion holes were drilled at the prospect but their locations are uncertain, hence their effectiveness is unknown. Grab sampling of the mineralisation returned a best result of:

* Sample RNK_036R – 3.2% copper, 75g/t silver, 0.12g/t gold, 11% zinc, and 0.49% lead.

At Harry Creek, outcropping amphibole-magnetite rocks associated with zinc – lead - copper mineralisation have been mapped discontinuously over 350 – 400 metres strike length (≤ 5 metres true width). A single hole (DDH1) drilled to test the mineralisation returned 4.0m @ 0.21% copper, 0.3% lead, 2.1% zinc from 39 metres.

Significantly, interpretation of aeromagnetic data shows that the mineralisation lies within a 2 kilometre long east–west trending magnetic feature, suggesting that there is excellent potential to find additional mineralisation along this trend.

At Red Rock Bore, outcropping zinc–lead–copper mineralisation has been continuously drilled by previous explorers on nominal 50 metre-spaced sections over 1 kilometre strike length (5 to 10 metres true width) to an average vertical depth of 100 metres with a best result of 12.30m @ 3.7% zinc, 0.6% lead, and 0.09% copper from 131.30 metres in RRK031 including 1m @ 13.6% zinc, 0.1% lead, 0.08% copper from 132.30 metres.

The mineralisation occurs within a sulphide bearing quartz – magnetite rock and remains open in all directions.

Next Steps

The Company is continuing to assess the exploration potential of the prospects and is currently undertaking a program of ground geophysical (magnetics) surveying and surface geochemical sampling to establish the extent of mineralisation at the Turners, Gecko and Harry Creek prospects. At Red Rock Bore, geological modeling will be undertaken to establish whether potential exists for further high-grade mineralisation within the area of existing drilling.

Mithril is encouraged by the results of the work so far, and looks forward to informing the market as further results 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 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.

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.
David Hutton
P: 08 8378 8200


copper • exploration update • gold • Northern Territory



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