Tuesday, January 22nd, 2013 - Mithril Resources Ltd

Mithril Resources Managing Director David Hutton has announced that drilling at its 100%-owned Spargos Reward Gold Mine in the Eastern Goldfields has intersected significant high-grade gold mineralisation immediately along strike and below the historic workings.

 

Mithril Resources Ltd (ASX:MTH) is pleased to advise that the recently completed drill program at its 100% - owned Spargos Reward Gold Mine, located approximately 30 kilometres west of Kambalda (Figure 1), intersected significant high-grade gold mineralisation immediately along strike and below the historic workings, including:

- 14m @ 6.75g/t gold from 130 metres in 12SPRC08 including 6m @ 12.67g/t gold from 133 metres; and

- 11m @ 3.54g/t gold from 187 metres in 12SPRC02 including 2m @ 13.67g/t gold from 189 metres.

The drill program comprised 8 holes (1,200 metres), with 4 of the holes (12SPRC01, 02, 06, and 08) drilled immediately adjacent to and below the historic underground mine workings, and another 4 holes (12SPRC03, 04, 05, and 07) drilled along strike from the mine (Figure 2).

The program demonstrated that the mine lies within a series of parallel gold-mineralised shear zones that have now been drilled over 500 metres strike length.

Significantly, the high grade results from holes 12SPRC02 and 12SPRC08 (which lie 75 metres below and 50 metres south of the workings respectively) when considered with historic drill results, suggest that a “shoot” of high-grade mineralisation extends sub-vertically beneath the workings to a depth of approximately 400 metres (Figure 2).

The Company believes that the “shoot” (which has only been tested by broad spaced drilling and remains open in most directions) has strong potential to host further high-grade gold mineralisation and is planning to commence more drilling late February 2013.

About the Spargos Reward Gold Mine

The Spargos Reward Gold Mine is one of the priority targets within the 75 km² West Kambalda Project Area, located approximately 30 kilometres west of Kambalda in the Eastern Goldfields of Western Australia.

The project area is highly prospective for the discovery of economic gold mineralisation and incorporates the Spargos Reward Gold Project and the recently acquired Spargoville Gold Project, collectively referred to as the West Kambalda Project. The project area includes the historic high-grade Spargos Reward Gold Mine and the Lady Allison Gold Deposit where an Inferred Resource of 2.1Mt @ 1.3g/t gold (86,800ozs) defined in accordance with the JORC Code was estimated in late 2011.

Spargos Reward was historically mined to a vertical depth of 120 metres (underground and open pit) with total production of approximately 29,257 ounces @ 8g/t gold. The mineralisation occurs within two parallel shear zones (the Western and Main Lodes), which have been previously drilled on 25 – 50 metre spaced sections throughout the mined area to an average depth of 140 metres.

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

Richard Sproull

P: (08) 8267 6888
M: 0418 585517

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