Mithril Resources Ltd (ASX:MTH) is pleased to advise that a ground geophysical (induced Polarisation – ‘IP’) survey has commenced at the Illogwa IOCG Area (‘Illogwa’) as an immediate follow-up of the first two priority areas identified following the recently completed VTEM survey at Illogwa with the aim of defining specific drill targets.
The two priority areas encompass the Austin and Mini Me prospects and contain multiple highly-rated VTEM conductive features that lie immediately along strike from existing copper mineralisation at both locations.
Concurrent with the IP surveying, systematic geological evaluation of other conductive features identified from the VTEM survey is underway with the aim of developing further targets for follow-up geophysical testing, and drilling if warranted.
IP surveying is a geophysical technique designed to explore for large buried accumulations of disseminated and semi-massive sulphide mineralisation.
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.
Austin Priority Area
As shown on Figures 2 and 3, the planned IP survey area covers the high priority VTEM conductor west of the Austin Prospect. This conductive anomaly extends for over 2km of strike and lies within a significant structural zone that is interpreted to control the outcropping and drilled copper mineralisation, and intense iron oxide copper gold (IOCG) style alteration at Austin, which is located approximately 2km to the east.
Geological mapping along the VTEM conductor confirms that it is almost entirely overlain by a thin veneer of transported sand and soil cover. Significantly, a small area (approximately 20m x 20m) of sub-cropping rocks within the central portion of the VTEM conductor displays further intense IOCG alteration consistent with the Austin Prospect.
Mini Me Priority Area
At Mini Me, the planned IP survey covers an area encompassing four low to high priority VTEM conductors as well as the outcropping Mini Me copper–gold mineralisation (Figures 2 and 4). The conductors also lie within a large scale structural zone that is interpreted to control the Mini Me mineralisation.
Similarly, the conductors are located under thin sand cover although geological mapping has identified scattered outcrops of disseminated copper sulphides (adjacent to conductor F02) and pebble sized fragments of IOCG–altered rock types at the eastern end of conductor F01.
It is anticipated that the results of the ground geophysical surveying will be available by late November 2012.
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”.