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), has commenced.
The first drillhole of this program (13SPRC001) is targeted to test the mineralised sequence 40m down plunge of historic drillhole KWD002 that intersected 17.6m grading 4.6g/tAu and 80m north of 12SPRC02 (drilled by Mithril in December 2012) that intersected 11m grading 3.54g/tAu including 2m grading 13.67 g/tAu (Figure 2).
Drilling is being conducted 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 high-grade gold mineralisation interpreted to extend sub-vertically beneath the mine’s existing workings to a depth of over 400 metres (Figure 2).
Drilling is also planned over some regional targets approximately 4km south of the mine where historical shallow RAB drilling ended in up to 7.7g/tAu from 44m in drillhole SRB0171 (Figure 1).
Results from the program are expected by late March 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 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.