Tuesday, September 18th, 2012
Mithril Resources Ltd (ASX: MTH) is pleased to advise that an airborne electromagnetic (Versatile Time Domain Electromagnetic - VTEM) survey to test for high grade copper-gold mineralisation within the Illogwa IOCG Target Area has commenced, following the successful completion of the Company’s maiden reconnaissance drilling program at Illogwa. As previously announced (22 August 2012), drilling has confirmed the presence of a potentially significant iron oxide copper gold mineralised system at Illogwa.

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).

These parties are funding the project pro-rata and Mithril is the operator of the joint venture.

The VTEM survey will be flown on 300-metre spaced flight lines over the entire 500km² Illogwa IOCG Target Area and is expected to be completed by the end of the current Quarter. The Company will immediately follow up priority anomalies generated by the VTEM survey.

The VTEM survey follows the recent completion of the Company’s initial reconnaissance drilling program (2,300 metres of air core, reverse circulation, and diamond drilling) focussed at the MiniMe, El Gordo, Goldmember, Nigel, Austin, and Bigglesworth prospects (Figure 2). While assay results are awaited for the diamond drill core, results have been received for all of the reverse circulation drill holes (See Table 1).

The drilling intersected strongly anomalous levels of copper mineralisation (e.g. 14m @ 0.34% copper, 0.04g/t gold from 18 metres in RC002, including 2m @ 1.15% copper, 0.23g/t gold from 21 metres, and 10m @ 0.34% copper, 0.01g/t gold from 10 metres in RC015) and associated alteration (such as quartz, hematite, carbonate and fluorite) at each drill locality, and the geological information obtained from the work also confirms the suitability of the VTEM survey to rapidly help determine whether high-grade copper-gold mineralisation exists within soil covered areas at Illogwa.

Approximately 80% of Illogwa is covered by soil cover (less than 10 metres thick), and the VTEM is expected to effectively “see” through these areas of cover.

Commenting on the VTEM survey, Mithril’s Managing Director, Mr David Hutton said: “Having now drilled strongly anomalous copper mineralisation and associated alteration, the Company remains confident that it is on track for discovery success at Illogwa”. “The VTEM survey is the critical step in defining the next round of drilling targets and we look forward to informing the market as the results of the survey come to hand”.

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.

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


Versatile Time Domain Electromagnetic - VTEM



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