Mithril Resources Ltd

Published : July 26th, 2016

• Quarterly Activities & Cash Flow Report June 2016

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• Quarterly Activities & Cash Flow Report June 2016

20160630 Mithril Quarterly June 2016 FINAL

Quarterly Report

For the Period Ending 30 June 2016

Key Points

Lignum Dam Project (Gold)

  • Recently granted, wholly owned project with multiple gold targets identified directly along strike from KalNorth's Lindsay's Gold Project (Resources of 3.97Mt @ 1.7g/t gold - 215Koz gold)

  • Targets prioritised on basis of surface geochemistry and existing bedrock gold mineralisation in historic drilling that include:

    o FFB008 - 3m @ 1.40g/t from 17 metres including 1m @ 2.26g/t at the bottom of hole

  • The targets remain largely underexplored with results awaited from recent geological mapping and sampling programme

    Coompana (Nickel - Copper)

  • OZ Minerals Limited (ASX: OZL) entered into a Heads of Agreement with Mithril to explore South Australia's far western Coompana Province for magmatic nickel - copper deposits.

    Spargos Reward (Lithium)

  • Historic lithium mineral occurrences and targets identified 18 kilometres south of NeoMetals Ltd.'s Mt Marion Lithium Project

  • Four targets display strong similarities to Mt Marion with no recent exploration

    Duffy Well (Gold)

  • Doray Minerals (ASX: DRM) undertook a high-resolution aeromagnetic survey over the project area to prioritise gold targets ahead of RAB / aircore drilling planned for the September 2016 Quarter

    Exploration Outlook

  • Ongoing evaluation of the Company's Kalgoorlie lithium, gold and nickel opportunities, as well as commencement of Coompana target generation activities will be the Company's primary focus for the September 2016 Quarter.

    Corporate and Cash

  • Cash reserves of $0.63M at 30 June 2016

22B Beulah Road


(61 8) 8132 8800

ASX Code:


Norwood, South Australia, 5067


(61 8) 8132 8899

Issued Shares:


Page 1 of 9


[email protected]

Market Capital:

A$4.53 million

Exploration Overview

Mithril Resources ("Mithril") and its joint venture partners are exploring for gold, lithium, and nickel - copper - PGE's primarily throughout the Kalgoorlie and Meekatharra Districts of Western Australia (Figure 1).

During the June 2016 Quarter (the "Quarter") Mithril identified and field checked new gold and nickel sulphide targets at Lignum Dam and Grey Dam South (Kalgoorlie), identified new lithium targets at Spargos Reward (Kalgoorlie), and highlighted the lithium potential of the Leaky Bore Project (East Arunta).

Doray Minerals (ASX: DRM), Mithril's gold exploration partner at Duffy Well (Meekatharra) prioritised gold targets for drill testing in the September 2016 Quarter and Chesser Resources (ASX: CHZ), identified new gold and nickel targets at Kurnalpi (Kalgoorlie).

Subsequent to the Quarter's End, OZ Minerals Limited (ASX: OZL) entered into a Heads of Agreement with Mithril to explore South Australia's far western Coompana Province for magmatic nickel - copper deposits.


Figure 1: Project Location Plan

During the Quarter, the Company spent $0.13M on its exploration activities outlined in this report and at 30 June 2016, the Company had cash reserves of $0.63M.

Lignum Dam Project (Gold)

(Mithril 100%)

Located 50 kilometres NNE of Kalgoorlie in Western Australia (Figures 1 and 2), Lignum Dam covers a package of gold and nickel prospective Archaen mafic, ultramafic, and felsic rocktypes directly along strike from KalNorth GoldMines' (ASX: KGM) Lindsay's Gold Project ("Lindsay's") within a defined structural corridor prospective for gold mineralisation.

At Lindsay's, KalNorth has defined Total Resources of 3.97Mt @ 1.7g/t gold for 215,100 ounces of contained gold including the high-grade Parrot Feathers deposit (401,000t at 4.2g/t Au for 54,000 ounces of contained gold). Historic drill intercepts at Parrot Feathers include 4m at 7.88g/t Au and 3m at 7.89g/t Au. (KalNorth ASX Announcement dated 10 May 2016).

Mithril's review of previous exploration activity undertaken over Lignum Dam has identified multiple gold targets including coherent surface gold geochemical anomalies and highly anomalous gold in shallow historic drilling up to 2.26g/t over individual metres.

Of note is historic drill hole FFB008 that finished in 3m @ 1.40g/t gold from 17 metres with the last metre returning 1m @ 2.26g/t. The hole occurs at the end of a drill traverse and has not been followed up.

Significantly all of the targets lie within a prospective corridor (interpreted from aeromagnetic and gravity data) that extends in a north westerly direction from Lindsay's through the project area.

Despite their location, the targets remain largely underexplored with previous exploration typically comprising wide - spaced shallow reconnaissance drilling, surface geochemical sampling and geophysics.

At the end of the Quarter, Mithril conducted a small programme of geological mapping and surface sampling of the targets, the results of which are awaited.

Coompana Project (Nickel-Copper-PGE's)

(OZ Minerals / Mithril)

Subsequent to the Quarter's End, OZ Minerals Limited (ASX: OZL) entered into a Heads of Agreement with Mithril to explore seven exploration licences in South Australia's far western Coompana Province for magmatic nickel - copper sulphide deposits (Figures 1 and 4).

Mithril will undertake a target generation exercise at Coompana in the first instance, with a view to identifying potential drill targets on the relevant tenements. OZ Minerals will invest $250,000 as part of the stage one targeting.

If Mithril identifies potential drill targets, and the outcome of the exercise is acceptable to both parties, then negotiations would advance to a formal joint venture to undertake exploration on the relevant tenements. Initial drill testing could be conducted by Mithril in the early half of 2017 and Mithril can elect to earn 20% interest by funding $400,000 of a $2m exploration program with the balance funded by OZ Minerals.

If the partnership extends to the drill testing phase, OZ Minerals will assist Mithril Resources to undertake a capital raising in support of the program.

Spargos Reward Project (Lithium)

(Mithril 35%, Corona Minerals 65%)

Spargos Reward is located 18 kilometres south of Neometals Ltd.'s (ASX: NMT) Mt Marion Lithium Project (approximately 55 km south of Kalgoorlie, Western Australia - Figures 1 and 2) and is prospective for both gold and lithium mineralisation.

A review of historical data conducted during the Quarter has identified multiple lithium targets that have been prioritised on the basis that they display strong similarities to the Mt Marion lithium deposits (NeoMetals Ltd.'s website and ASX Announcement dated 29 January 2016) in that they are pegmatite intrusions within a mafic - ultramafic rocks, cross cutting structural features, coincident radiometric (potassium) anomalies, and historic tin - tantalum - lithium mineral occurrences (see ASX Announcement dated 2 May 2016).

Despite occurring within close proximity to Mt Marion and the Spargos Reward Gold Deposit, none of the targets have received any modern-day lithium exploration and field evaluation is planned for the September 2016 Quarter

Corona Minerals and Mithril Resources are exploring the Project under the terms of the Spargos Reward Tenement Sale and Joint Venture Agreements whereby:

  • Corona has earnt a 65% interest in the Project tenements by paying Mithril $100,000 cash, and completing exploration expenditure of A$150,000 by 11 May 2016,

  • Corona has also elected to earn a further 20% equity (for a total of 85%) by sole funding exploration through to the completion of a positive scoping study on a 2012 JORC Code Compliant Mineral Resource.

The Spargos Reward Project comprises P15/4876-4883, 4886, 5763, 5791, and E15/1423. Minotaur Exploration Ltd (ASX: MEP) holds the nickel rights to P15/4876-4883, and 4886 which are excluded from the joint venture agreement on all other metals.

Duffy Well Project (Gold)

(Mithril 100%, Doray Minerals earning up to 85% and operating)

At Duffy Well, Doray Minerals Limited ("Doray" - ASX: DRM) is earning up to an 85% interest in Mithril's Duffy Well Project by completing exploration expenditure of $500,000 over 3 years.

Duffy Well (EL51/1649) is located 30 kilometres east of Meekatharra WA (Figures 1 and 3) and covers the interpreted southern extension of the Gnaweeda Greenstone Belt where Doray has intersected high-grade gold mineralisation in RC drilling at the Turnberry Prospect including 3m @ 10.1g/t gold from 149 metres, 5m @ 17.4g/t gold from 71 metres, and 4m @ 17.9g/t gold from 45 metres (Doray ASX Announcement dated 11 June 2015).

Previous exploration throughout the project area has comprised reconnaissance RAB and aircore drill traverses with little or no follow-up. Mithril's review of Duffy Well has identified two gold targets for initial follow-up.

Lying within the northern and central portions of the project, both targets are characterised by zones of structural complexity within favourable greenstone rocktypes and coincident combined bedrock gold (+50ppb) and arsenic (+100ppm) anomalism within wide-spaced drillholes.

During the Quarter, Doray completed a high-resolution aeromagnetic survey over the project area to prioritise gold targets ahead of RAB / aircore drilling planned for the September 2016 Quarter.

Kurnalpi Project (Nickel-Gold)

(Mithril 100%, Chesser Resources earning up to 80% and operating)

At Kurnalpi, Chesser Resources Limited ("Chesser" - ASX: CHZ) is entitled to earn up to an 80% interest in two recently granted tenements (EL28/2506 and PL28/1271) located at Kurnalpi (located 60 kilometres north east of Kalgoorlie, WA - Figures 1 and 2) by reimbursing Mithril's tenement acquisition costs and completing exploration expenditure of $250,000 over 4 years.

The Kurnalpi Project tenements are both wholly-owned by Mithril and cover Archaen ultramafic / mafic sequences which are prospective for both nickel sulphide and lode gold mineralisation.

During the Quarter, Chesser field checked a number of gold and nickel sulphide targets that had been identified from a review of historical exploration data. At the time of writing, the results of the field work (including rock chip sampling) were awaited.

Grey Dam South (Nickel)

(Mithril 100%)

Grey Dam South is located at Kurnalpi immediately south of the Grey Dam Nickel Laterite Resource (14.5Mt @ 0.7% nickel - KalNorth Gold Mines ASX Announcement dated 25 October 2013) (approximately 65 kilometres

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Mithril Resources Ltd

ISIN : AU000000MTH3
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Mithril Res is a nickel and copper exploration company based in Australia.

Mithril Res holds various exploration projects in Australia.


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Corporate Presentations of Mithril Resources Ltd
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10/23/2015• Notice of Meeting/Proxy Form
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10/20/2015• Quarterly Activities & Cash Flow Report Sep 2015
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10/6/2015• Appendix 3B - Placement
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9/17/2015• Extension to Share Purchase Plan
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