|Mithril’s nickel and gold targets are in the nickel-rich West Kambalda region of Western Australia.|
MITHRIL Resources is undertaking an initial 1000 metre reverse circulation drilling and downhole geophysical program designed to test three high priority nickel and gold targets about 30km west of Kambalda in Western Australia. The nickel targets are Hendrix and Floyd while the gold target is Zeppelin.
At Hendrix prospect Mithril has identified a 300 metre-long zone of anomalous conductivity within ultramafic rock types immediately adjacent to a shallow zone of greater than 1% nickel mineralization drilled by Inco in 1970, including 9.1 metres @ 2.5% nickel from 10.7 metres.
At Floyd prospect Mithril has identified a bedrock conductor over a 600 metre strike length, proximal to an ultramafic-basalt contact south along strike from Hendrix.
Drilling will also test Zeppelin, a high-grade gold target where recent sampling of ferruginous vein quartz material within a series of shallow historic workings returned high-grade gold values of 37.82 grams/tonne and 64.17 grams/tonne.
The West Kambalda targets are subject to a farm-in and joint venture agreement with KalNorth Gold Mines in which Mithril has concluded stage one and earned an initial 20% interest having successfully completed expenditure of $320,000. Mithril is continuing to stage two of the JV by spending a further $1.68 million by no later than May 17, 2017 for an additional 60% interest. It will earn a total 80% interest by completing expenditure of $2 million over four years.
The commencement of the drilling and geophysics follows a successful capital raising undertaken recently which raised $630,000, before costs, through a share placement to sophisticated and professional investors including a number of existing major shareholders.
The proceeds of the placement increased Mithril’s cash position to approximately $1.92 million before costs and are being used to underpin the 1000 metre RC drilling and downhole geophysical program in the West Kambalda region, as well as for working capital.
The placement was made in accordance with the company’s available 25% placement capacity pursuant to ASX Listing Rules. The new shares will rank equally with existing Mithril ordinary shares quoted on the ASX and upon completion Mithril will have total issued capital of 315.7 million shares.
Mithril is an Australian exploration company focused on the discovery and development of base metal deposits, primarily copper. Mithril is a frontier explorer with a small but highly experienced team based in Adelaide, South Australia. Combining advanced technology with a proven field based approach ensures the bulk of the company’s expenses go directly into the ground.