Friday, March 29th, 2013 - Mithril Resources Ltd

 Mithril Resources Ltd Managing Director David Hutton has announced further high grade mineralisation following the Company's latest drilling program at the wholly owned Spargos Reward Gold Mine.

Mithril Resources Ltd (ASX:MTH) is pleased to advise that a recently completed drilling program at its wholly owned Spargos Reward Gold Mine, located approximately 30 kilometres west of Kambalda (Figure 1), has intersected further high-grade gold mineralisation below the historic workings, including (down hole widths):

o 8m @ 10.30 g/t gold from 242 metres in 13SPRC07 including 3m @ 25.73 g/t gold from 243 metres,

o 10m @ 4.60 g/t gold from 256 metres in 13SPRC09 including 3m @ 13.00 g/t gold from 260 metres,

o 10m @ 3.18 g/t gold from 250 metres in 13SPRC08 including 2m @ 8.15 g/t gold from 253 metres,

o 4m @ 6.63 g/t gold from 220 metres in 13SPRC04 including 1m @ 8.15 g/t gold from 222 metres,

o 10m @ 2.61 g/t gold from 159 metres in 13SPRC05 including 3m @ 5.53 g/t gold from 162 metres.

Nine reverse circulation (RC) holes (13SPRC01 to 13SPRC09 – Table 1) totaling 2,140 metres, were drilled on approximate 40-metre centres to a vertical depth of 260 metres. These holes were planned to determine the significance of a high-grade gold zone, interpreted from previous wide spaced drilling, to lie beneath the mine’s existing workings to a depth of over 400 metres (Figure 2).

The new results confirm the high-grade nature of the gold zone, and suggest that both the width and grade of mineralisation are increasing with depth, and that the mineralisation remains open along strike and down dip.

A further three holes (13FTRC001 to 13FTRC03 – Table 1) totalling 342 metres, and for which assay results are awaited, were also drilled as part of the recent program. These holes targeted a regional gold in soil anomaly 700 metres long , located approximately 4 kilometres south of the mine and where historical shallow RAB drilling ended in 7.7 g/t gold from 44 metres in drill hole SRB0171 (Figure 1). This is one of a number of regional gold in soil anomalies that will be drill tested in future programs.

Commenting on the announcement, Mithril’s Managing Director David Hutton said: “The results clearly demonstrate the potential of Spargos Reward and validate the Company’s decision to purchase the asset in late 2012”.

“These results contain some of the highest grade drill intercepts ever obtained at Spargos Reward and we anticipate completing an initial JORC Code compliant resource estimate for the deposit by the September Quarter 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 Area. The project 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 29,260 ounces @ 8g/t gold. The mineralisation occurs within two parallel zones (the Western and Main Lodes) of strongly sheared silica (quartz) and sulphide (arsenopyrite) alteration, 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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Mithril Resources Ltd , latest drilling program

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