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Mithril Resources

Mithril Resources unveils further drill results from Basil Copper Prospects in Northern Territory

Mithril Resources (ASX:MTH) has advised that further drilling results from the extensive Basil Copper Prospect continue to deliver significant intersections of copper and cobalt mineralisation from shallow depths.

In a statement, Mithril reported that recent drilling has intersected thick intervals of sulphide mineralisation and assays from LBRC12 have returned significantly higher grades than the previously reported drillholes.

The announcement saw shares in the company increase 5.3% to 20c.

Highlights of the drilling includes 41m at 0.6% copper and 432 ppm cobalt from 74m in hole LBRC12 at Rotten Hill.

The intersection is comprised of disseminated and semi-massive sulphide mineralisation and includes higher grade intervals of 3.0m @ 1.4% copper and 284 ppm cobalt from 74m; 9.0m @ 1.0% copper and 336 ppm cobalt from 87m and 5.0m @ 0.9% copper and 615 ppm cobalt from 109m.

The Basil Copper Trend is situated on Mithril’s Leaky Bore tenement of the Huckitta Project in the Northern Territory.

The company has now completed 17 Reverse Circulation drillholes along with 3 Diamond Drillholes testing targets on the southeastern end of the 10 kilometre long Basil trend.

Managing director Graham Ascough said the higher grade copper intervals intersected by hole LBRC12 are very encouraging as they demonstrated that the Basil trend had the potential to deliver higher copper grades over significant thicknesses.

The highest assay value from hole LBRC12 is 2.1% over 1m. It appears that both the grade and width of the Rotten Hill mineralisation has the potential to increase with depth.

Hole LBDD2 was drilled 40m behind LBRC12 and has intersected disseminated and semi-massive sulphides in two intervals with assays pending. The mineralisation remains open at depth and along strike.

The broad zone of mineralisation encountered over 146.5m in diamond drillhole LBDD3 demonstrates the potential size of the mineralised system at Basil. The abundance of sulphide in the intercept is variable but thick zones of semi-massive mineralisation (20-50% sulphide) are common.

The mineral assemblage is predominately pyrrhotite +/- pyrite with the copper bearing sulphide chalcopyrite observed throughout. Although variable, drill core angles suggest the intersection approximates true-width. Hole LBDD3 is situated 200m southeast of hole LBRC5 and extends the strike extent of Rotten Hill to at least 900m.

The mineralisation remains open in all directions.

The early results from Basil continue to validate the mineral potential of this unexplored region and offer strong encouragement for further drilling. Crews will break for the summer season but drilling will re-commence in February/March 2010.

During the break the company will complete a detailed assessment of the geological and geophysical data collected during the recent months to further assist in delineating targets for next year.

Assay results are expected over the next 3 to 4 weeks and further updates will be provided as they are received.