Thursday, August 23rd, 2012

Further to its ASX release of 8 August 2012, Mithril Resources Ltd (ASX: MTH) is pleased to advise that initial reconnaissance drilling at the Illogwa Iron Oxide Copper Gold (IOCG) Target Area has confirmed the presence of a potentially significant iron oxide copper gold mineralised system at this locality.

Illogwa is located on the Company’s Huckitta Project approximately 150 kilometres east of Alice Springs, Northern Territory (Figure 1) and lies within 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). Mithril is the operator of the joint venture.

At the time of writing, 1351 metres of diamond, reverse circulation and air core holes have been drilled as an initial test of a number of priority drill targets (Figure 2) throughout Illogwa.

At Austin, diamond drilling of Induced Polarisation (IP) anomalies modelled to lie directly beneath outcropping hematite alteration +/- copper mineralisation, has intersected broad zones of strongly altered (quartz–haematite–fluorite) and brecciated granite ranging in down hole widths from 21 to 51 metres (Figure 3). This style of alteration is consistent with an iron oxide copper gold mineralised system.

Significantly, visible weak stringer and disseminated–style copper sulphide (chalcopyrite – pyrite) mineralisation (Figure 3) over 13 metres down hole

width was observed within the altered zone in one of the holes (APDD002).

At Mini Me, reverse circulation drilling beneath outcropping copper mineralisation (rock chip sampling returning values ranging from 0.13% to 7.8% copper and 0.01 g/t to 1.4 g/t gold) has intersected multiple zones of quartz veining and visible disseminated – style copper sulphide (chalcopyrite – pyrite) mineralisation ranging in down hole width from 1 to 3 metres within a broader 30 metre (down hole width) zone of sheared granite and metasediments.

While assays results are expected by early September 2012, the presence of visible copper sulphide mineralisation and broad widths of strong alteration is highly encouraging as it confirms that a significant iron oxide copper gold mineralised system is present at Illogwa. It should be noted that the prospects drilled to date cover an expansive target area – some 50 kilometres in strike length.

Additionally the presence of stringer – style sulphide mineralisation and shallow soil cover reinforces the Company’s decision to carry out a regional VTEM (airborne EM) geophysical survey over the entire Illogwa IOCG Target Area with the aim of detecting buried high-grade copper gold sulphide mineralisation. The survey is scheduled to commence early September 2012.

Drilling is continuing with further holes planned at the Austin, Nigel, MiniMe and Bigglesworth prospects.

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 fulltime 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.

David Hutton

08 8378 8200

Richard Sproull

phone: (08) 8267 6888
mobile: 0418 585 517

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, Managing Director, Mithril Resources
P: 08 8378 8200


initial reconnaissance drilling at the Illogwa Iron Oxide Copper Gold (IOCG) Target Area



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