Mithril Resources Ltd (ASX:MTH) is pleased to advise that a 2,600 metre reverse circulation drill program at its 100%-owned Spargos Reward Gold Mine, located approximately 30 kilometres west of Kambalda (Figure 1), is set to commence late next week.
Drilling will be carried out on 40-metre centres to a vertical depth of 250 metres, with the aim of allowing the Company to determine the potential economic significance of a recently identified “shoot” of high-grade gold mineralisation interpreted to extend sub-vertically beneath the mine’s existing workings to a depth of over 400 metres (Figure 2).
Recent drilling of the shoot by Mithril successfully intersected high-grade gold mineralisation including 14m @6.75g/t gold from 130 metres including 6m @ 12.67g/t gold, and 11m @ 3.54g/t gold from 187 metres including 2m @ 13.67g/t gold from 189 metres (see ASX Announcement dated 21 January 2013).
Drilling will also test a number of historic drill intercepts (including 1m @ 27.2g/t gold from 5 metres in SRC13, and 0.5m @ 7.7g/t gold from 44 metres in SRB171 – refer to Table 1) and surface gold anomalies approximately 4km south of the mine.
Results from the program are expected by late March 2013.
Mithril is also pleased to advise that research coverage has been received from Gold Australia Pty Ltd which has been written by Tony Locantro.
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 a JORC Code Compliant Inferred Resource of 2.1Mt @ 1.3g/t gold (86,800ozs) 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.
This research report has been prepared by Gold Australia Pty Ltd. The information contained in this presentation is a professional opinion only and is given in good faith. Certain information in this document has been derived from third parties and though Mithril has no reason to believe that it is not accurate, reliable or complete, it has not been independently audited or verified by Mithril.
Any forward-looking statements included in this document involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and may be unknown to, Mithril. In particular, they speak only as of the date of this document, they assume the success of Mithril’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward-looking statements and the assumptions on which the forward-looking statements are based. Recipients of this document (Recipients) are cautioned to not place undue reliance on such forward-looking statements.
Mithril makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued.
To the extent permitted by law, Mithril and its officers, employees, related bodies corporate and agents (Agents) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Mithril and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.
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.
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David Hutton, Managing Director, Mithril Resources
P: 08 83788200