Tuesday, April 16th, 2013 - Mithril Resources Ltd

Mithril Resources has commenced its initial 2013 Field Season work program across its East Arunta Project Area with the expectation of bringing ten highly rated exploration targets to drill ready stage. 


Mithril Resources Ltd (ASX:MTH) is pleased to advise that its initial 2013 Field Season work program comprising geological mapping and sampling, has commenced on the Company’s East Arunta Project Area, which is located immediately north and east of Alice Springs in the Northern Territory (Figure 1).

The project area includes the Illogwa Project which is prospective for Iron Oxide Copper Gold (IOCG) mineralisation and the Yambah Project, which is prospective for Volcanic Massive Sulphide (VMS) – hosted base metal mineralisation.

The field work aims to bring ten highly rated precious and base metal exploration targets identified during the 2012 Field Season to a “drill ready” stage where individual drill holes can be accurately sited. It is planned that following the current mapping and sampling programs, geophysical surveying, including induced polarisation (“IP”) and electromagnetics (“EM”), will be undertaken on several of the targets.

Subject to positive results and Board approval, drilling is anticipated to commence during the September 2013 Quarter.

Of the identified targets so far, Mini Me West, at Illogwa is ready to be drilled now, with an additional nine targets spread across both Illogwa and Yambah requiring varying degrees of further work to bring them to “drill ready” stage. The location of the targets is shown on Figure 2, and a brief description of two of the higher priority targets is given below.

Mini Me West (Mithril 80% and Cazaly Resources Ltd 20%)

Mini Me West is located within the eastern half of Illogwa and comprises an 800-metre long coincident EM and IP geophysical anomaly. Portions of this anomaly lie beneath outcropping disseminated copper mineralisation (2012 rock chip results up to 1.9% copper - Figure 3) and modeling suggests that the geophysical anomalies are two parallel steeply north east – dipping bodies which may be attributable to sulphide mineralisation.

The target has never been drilled and four reverse circulation holes to test the target are planned for when drilling commences.

Bessie’s Reward (Mithril 100%)

The newly identified Bessie’s Reward VMS target is located approximately 80 kilometres east of Alice Springs and comprises multiple gossan outcrops within a 450 metre x 150 metre area (Figure 4). Mithril sampling of the gossans in March this year returned highly encouraging results, including:

? Sample PP10002 – 9.69% copper, 0.32% lead, 2.13% zinc, and 8.9g/t silver, and

? Sample PP10008 – 0.79% copper, 1.13% lead, 21.4% zinc, and 108g/t silver.

The target was last explored in the early 1980’s with three shallow (≤ 80 metres) reverse circulation holes returning the following results:

? 25m @ 0.22% copper, 0.27% lead, 0.67% zinc, and 1.48g/t silver from surface in drill hole PJ1,

? 22m @ 0.33% copper, 0.01% lead, 0.44% zinc, and 2.87g/t silver from surface in drill hole PJ2, and

? 31m @ 0.20% copper, 0.05% lead, 0.80% zinc, and 0.89g /t silver from surface in drill hole PJ3.

The drill results and wide distribution of gossans suggest that Bessie’s Reward has the potential to host a large mineralised system, and further geological mapping and geophysics is needed to fully evaluate the target and in turn, optimise the siting of any follow-up drill holes.

Commenting on the commencement of field work, Mithril’s Managing Director, Mr. David Hutton said: “The East Arunta Project Area is one of the most prospective copper–gold and base metal projects being explored in Australia today. Significantly, we have now identified a number of discrete targets in areas of little or no cover that with some further geological and geophysical work will be shortly at a drill ready stage. The Company looks forward to informing the market as further results come to hand”.

About the East Arunta Project Area

The Illogwa IOCG Area lies within the 5,100 kms² Huckitta Project and is located on three tenements, two of which (ELs 25643 and 25653) are subject to a joint venture between Mithril Resources (80%) and Sammy Resources Pty Ltd (20%), a wholly owned subsidiary of ASX-listed Cazaly Resources Ltd (ASX: CAZ). These parties are funding the project pro-rata and Mithril is the operator of the joint venture.

The wholly – owned 1,100 kms² Yambah Project is prospective for Volcanic Massive Sulphide (VMS) hosted base metal mineralisation and structurally controlled gold mineralisation.

Together the combined projects represent a significant greenfields exploration portfolio within the rapidly emerging, and relatively underexplored Eastern Arunta Province of the Northern Territory.

Other significant mineral occurrences within the province includes the Company’s Basil Copper Deposit (Inferred Resource of 26.5Mt @ 0.57% copper, 0.05% cobalt), Kentor Gold’s (ASX: KGL) Jervois Copper – Silver – Gold Project, and Kidman Resources’ (ASX: KDR) Home of Bullion Copper Project.

NOTES SPECIFIC

Basil Copper Deposit

The Inferred Mineral Resource of 26.5Mt @ 0.57% copper, 0.05% cobalt has been calculated using a 0.3% copper cut-off grade. The Resource is composed of both interpolated and extrapolated resources and has been reported in accordance with the JORC Code (2004) and JORC/ASX Companies Update Number 03/07. Refer to ASX Announcement dated 21 March 2012 for further information.

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

East Arunta Project, Northern Territory, Field work

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