Friday, December 10th, 2010

Base metals explorer Mithril Resources Ltd (MTH:ASX) is pleased to advise that exploration activities at the Huckitta Project continue to return encouraging results:

  • A new gold-tungsten-copper discovery has been identified over a strike length of 3km with grab samples returning up to 4.6g/t gold and 0.5% tungsten. The horizon remains open in all directions.
  • Significant intervals of copper bearing sulphides continue to be identified in drilling at both the Manuel and Polly Prospects at shallow (<50m) depths. Drilling continues.
  • A recently completed gravity survey has identified compelling new drill targets at the Basil (Cu-Co) and the Baldrick (Ni-Cu-PGE) Prospects.
  • Magmatic sulphides have been identified at a new nickel-copper prospect (Hammerhead) and grab samples have returned anomalous values of platinum, palladium nickel and copper.

Field activities completed in November have identified a number of new drill targets that will require extensive testing in 2011.

Recent drilling has focused on shallow targets at the Manuel and Polly copper prospects. Copper mineralisation has been intersected at both prospects with assays pending from Polly. Downhole geophysical surveys (EM) at both prospects have identified further targets that will require additional drill testing.

Geological mapping and sampling programs across prospective regional targets have also identified a number of new mineralised horizons including extensive tungsten (W) and gold (Au) mineralisation at the Tibbs Prospect. New nickel drill targets have also been outlined at the Gertrude, Baldrick and Hammerhead Prospects.

A recent gravity survey has delineated an exciting anomaly at the Basil copper prospect under shallow sand cover (Figure 2). This anomaly has not been drill tested and is associated with a VTEM and ground electromagnetic anomaly. It is located along strike and to the southeast of the significant mineralisation intersected in the Rotten Hill zone of the Basil Prospect where drilling has intersected significant widths of copper and cobalt mineralisation (up to 59.1m @ 0.63%Cu, 0.07% Co).

This will be further evaluated with aircore drilling in December and deeper reverse circulation (RC) drilling and/or diamond drilling in 2011. It should also be noted that the 8km long northwest extension of Basil remains untested.

Tibbs Prospect
Grab samples have returned up to 4.6g/t Au, 0.5% W and 0.1% Cu from an outcropping ironstone and gossan horizon at the Tibbs Prospect (Figure 3). The mineralised horizon is up to 2m thick, intermittently outcrops over at least three kilometres and is often partially obscured by soil and rubble (Figure 4). . Geological mapping and sampling of this new discovery is continuing and it is currently open in all directions. Drill testing is planned for early next year following heritage surveys. This discovery is located on 100% held Mithril ground and on EL25453, which is part of the Hart’s Range Joint Venture where Mithril holds a 60% interest and Oklo Uranium Ltd holds 40%.

Manuel Prospect

Recent drilling at the Manuel Prospect tested a coincident magnetic and electromagnetic anomaly under thin sand cover. The drillhole LB036DD intersected 25.4m of variably sulphide mineralised gneiss and amphibolite rock types from a downhole depth of 39.5m (Table 1). The sulphide content averages 5-10% throughout this interval and contains up to 1.8m wide intercepts of semi-massive sulphides. While copper and cobalt assays are relatively low ([email protected]%Cu and 0.02%Co) the drillhole is significant as the next closest drillhole is more than 550m to the west. Downhole geophysical surveys have identified a strong off-hole conductor below the drillhole suggesting the mineralisation increases down dip. This target will be drill tested in 2011. Ground geophysical surveys are planned to generate further targets at Manuel where shallow drilling on three sections has now intersected mineralisation over 1.2 km.

Polly Prospect

Four shallow RC percussion holes (LB039RC-LB042RC) and three diamond drillholes (LB037DD, LB038DD and LB043DD) have been completed testing the near surface down-dip extent to the outcropping gossans and VTEM conductors at Polly. The drilling is focussed on 800m of the more than 2km strike length of the Polly Prospect. Significant sulphide mineralisation has been intersected in four of the drillholes up to 9m thick at shallow depths with assays pending (Table 1). Drilling is ongoing at Polly and downhole EM surveys have identified further targets for drill testing.

These early results from Polly confirm the potential of the area to host significant near surface copper-cobalt mineralisation. Analytical results for the drilling completed at Polly are expected to be returned in the coming weeks.

New drill targets at the Baldrick, Hammerhead & Gertrude nickel Prospects

A recent gravity survey at the Baldrick Ni-Cu Prospect has identified a drill target proximal to the outcropping mineralisation (Figure 5). The discreet gravity anomaly is located northeast of the mineralised intrusion where previous drilling intersected up to 12m @ 0.4%Ni and 0.3%Cu. This gravity anomaly is interpreted to represent the potential continuation and thickening of nickel and copper bearing sulphides. Drilling is planned to test this target early next year. The Baldrick Prospect is located on EL25346 - which forms the Treasure JV with Iron Mountain Mining Ltd and United Orogen Ltd - where Mithril can earn an 80% interest in the tenement.

Field work at the newly discovered Hammerhead Prospect has identified magmatic disseminated and blebby nickel-copper sulphides - similar to those found at the Blackadder and Baldrick Prospects. - These sulphides are present in a large gabbroic body on the wholly-owned tenement EL26942 (Figure 1). Analytical results from this prospect have returned anomalous values of nickel (Ni), copper (Cu), platinum (Pt) and palladium (Pd).

Similar anomalous rockchip results have recently been returned from the Gertrude Prospect (up to 1.5g/t Pd was returned with anomalous Ni, Cu and Pt). Gertrude is coincident with a VTEM target identified in the 2009 VTEM survey.

The observed sulphides and anomalism indicates that the ore-forming processes are in place at these prospects and further work is underway in the form of further geological mapping, geochemical sampling and ground electromagnetic surveys to delineate drill targets that will be tested in 2011.

Basil Prospect

A large gravity anomaly has been identified at the Basil Prospect under shallow sand cover. This anomaly has not been drill tested, is associated with a VTEM and ground electromagnetic anomaly and is along strike from the significant mineralisation intersected in the Rotten Hill zone of the Basil Prospect (up to 59.1m @ 0.63%Cu, 659ppm Co), Figure 2. This gravity target could represent further significant near surface mineralisation and shallow drilling over this target is planned in the next week.

Further updates will be provided as drilling results and assays become available.

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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 with a small but highly experienced team based in Adelaide. Combining advanced technology with a proven field?based approach ensures the bulk of the company’s expenses go directly into the ground. This is yielding excellent results and Mithril’s recent discovery of the Basil Copper Prospect at its Huckitta Project has the potential to deliver a large tonnage, near surface deposit.

Richard Sproull
P: 08 82676888
M: 0418585517


Mithril Resources Ltd, mining, resources, exploration, copper, nickel



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