Tuesday, April 9th, 2013 - Mithril Resources Ltd

Mithril Resources Ltd Managing Director David Hutton has announced that further positive results from the recently completed drilling program at the Company's Spargos Reward Gold Mine in Western Australia have identified a new gold zone. 

Mithril Resources Ltd (ASX:MTH) is pleased to advise that further positive results from the recently completed drilling program at its wholly owned Spargos Reward Gold Mine, located approximately 30 kilometres west of Kambalda, have identified a new gold zone (named ”Evans Prospect”) immediately south of the mine.

Three reverse circulation holes (13EVRC01 to 13EVRC03) totalling 342 metres were drilled on two adjacent 100-metre spaced sections to test the significance of two historical drill intercepts (ie 0.5m @ 7.7g/t gold from 44 metres in SRB171 and 1m @ 1.06g/t gold from 49 metres in SRC61) that lie beneath a 700-metre north-south trending surface anomaly 3.3 kilometres south of Spargos Reward (Figure 1).

On both sections, the drilling intersected a steeply dipping zone (15 to 20 metres true width – Figure 2) of sheared silica (quartz) and sulphide (disseminated arsenopyrite – pyrite) alteration visually identical to Spargos Reward. Importantly, the zone is gold bearing with better results including (down hole widths):

? 3m @ 0.95g/t gold from 46 metres in 13EVRC01, 1m @ 1.03g/t gold from 70 metres and 3m @ 0.95g/t gold from 99 metres in 13EVRC02, and 1m @ 1.99g/t gold from 30 metres in 13EVRC003.

The results are significant given that they are equivalent to those seen within 100 metres of high-grade gold mineralisation at Spargos Reward (Figure 3). Coupled with the prospect’s lack of effective drilling, excellent potential exists to find new occurrences of higher grade gold at Evans.

In conjunction with the ongoing Spargos Reward Gold Mine resource estimate (anticipated by the September Quarter 2013), work continues to generate further targets surrounding the mine area. These targets along with the newly identified Evans Prospect will be further assessed through ground follow-up and prioritised for the next phase of drill testing.

Commenting on the announcement, Mithril’s Managing Director Mr David Hutton said: “We are encouraged by the new results as they reinforce the potential of the broader Spargos Reward area”.

“Our geological team has done a great job to identify new target areas outside of the mine and we look forward to further success at the Evans Prospect.”

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.

The economic potential of the mine has been highlighted by new drill intercepts recently obtained by Mithril including; 14m @ 6.75g/t gold from 130 metres in 12SPRC08 including 6m @ 12.67g/t gold, and 8m @ 10.30g/t gold from 242 metres in 13SPRC07 including 3m @ 25.73g/t gold. (See ASX Announcement dated 27 March 2013.)

Mithril anticipates completing an initial JORC Code compliant resource estimate for the deposit by the September Quarter 2013.

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

Keywords

New gold zone, South of Spargos Reward

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