Mithril Resources Ltd (ASX:MTH) is an exploration company focused on its Australian assets.
Mithril Resources (ASX: MTH) has uncovered more high grade gold beneath the historic workings at its Spargos Reward Gold Mine in Western Australia in the latest drilling program.
Acquiring the Spargos Reward asset has proven a good decision with the results demonstrating widths and high grades.
This round of drilling has delivered some of the highest grade intercepts ever seen at Spargos Reward.
With today's results Mithril will look to report a maiden JORC Resource for the deposit by the September quarter 2013.
Notable intercepts include 8 metres at 10.3 grams per tonne (g/t) gold from 242 metres including 3 metres at 25.73g/t gold, and 10 metres at 4.6g/t gold from 256 metres including 3 metres at 13g/t gold.
Other highlights included:
- 10 metres at 3.18g/t gold from 250 metres, including 2 metres at 8.15g/t gold;
- 4 metres at 6.63g/t gold from 220 metres, including 1 metre at 8.15g/t gold; and
- 10 metres at 2.61g/t gold from 159 metres, including 3 metres at 5.53g/t gold.
Nine reverse circulation holes, totalling 2,140 metres, were drilled to determine the significance of a high grade gold zone, interpreted from previous wide spaced drilling, to lie beneath the mine’s existing workings to a depth of over 400 metres.
The new results confirm the highgrade nature of the gold zone, and suggest that both the width and grade of mineralisation are increasing with depth.
Mineralisation remains open along strike and at depth.
A further three holes, totalling 342 metres, and for which assays are awaited, were also drilled as part of the recent program.
These holes targeted a regional gold in soil anomaly 700 metres long , located about 4 kilometres south of the mine and where historical shallow rotary air blast drilling ended in 7.7g/t gold from 44 metres.
This is one of a number of regional gold in soil anomalies that will be drill tested in future programs.
The Spargos Reward gold mine is one of the priority targets within the 75 square kilometre West Kambalda project area, which also includes the recently acquired Spargoville gold project.
The West Kambalda project area includes the historic high grade Spargos Reward gold mine and the Allison Gold Deposit, where an Inferred JORC Resource of 2.1 million tonnes at 1.3g/t for 86,800 contained ounces has been defined.
Spargos Reward was historically mined to a vertical depth of 120 metres (underground and open pit) with total production of about 29,260 ounces at 8g/t gold.
Mithril remains well-funded to continue its exploration programs with around A$3.1 million in cash at the end of December.
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