b678113f-b591-432b-99a9-e40cfe00498a.pdf
Quarterly Report
For the Period Ending 31 December 2015
Key Points
Nanadie Well Project (Copper-Nickel-PGE's)
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Latest drill results double strike extent of copper - nickel - PGE mineralised massive sulphides to over 200 metres and identify a new parallel mineralised zone at the Stark Prospect:
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2m @ 3.27% copper, 0.11% nickel and 0.94g/t PGE's
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7m @ 1.41% copper, 0.31% nickel and 0.60g/t PGE's including; 4m @ 2.03% copper, 0.37% nickel and 0.62g/t PGE's
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14m @ 0.40% copper, 0.08% nickel and 0.27g/t PGE's including; 3m @ 0.60% copper, 0.20% nickel and 0.56g/t PGE's
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Mineralisation remains open in all directions with an untested downhole EM conductor at depth
Duffy Well Project (Gold)
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Doray Minerals (ASX: DRM) to earn up to 85% of the project by reimbursing Mithril's tenement acquisition costs and completing exploration expenditure of $500,000 over 3 years
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Two gold prospective areas identified for follow-up during the March 2016 Quarter
Kurnalpi Project (Gold)
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Chesser Resources (ASX: CHZ) has commenced target generation activities
Spargos Reward Project (Gold)
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1,500 metre RC drilling program to infill and test for extensions to previous high-grade gold drill intercepts at the Spargos Reward Gold Deposit (i.e. 8m @ 10.30 g/t gold from 242 metres incl. 3m @
25.73 g/t gold) underway subsequent to Quarter
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Corona Minerals managing and sole-funding to earn up to a 85% interest
Exploration Outlook
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Ongoing evaluation of the Stark copper-nickel-PGE prospect will be the Company's primary focus for the March 2016 Quarter
Corporate and Cash
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Cash reserves of $0.48M at 31 December 2015
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22B Beulah Road
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T:
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(61 8) 8132 8800
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ASX Code:
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MTH
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Norwood, South Australia, 5067
www.mithrilresources.com.au
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F:
E:
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(61 8) 8132 8899
[email protected]
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Issued Shares:
Market Capital:
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504,929,066
A$2.52 million
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Page 1 of 11
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Exploration Overview
Mithril Resources ("Mithril" or "the Company") and its farm-in partners are exploring for copper-nickel-PGE mineralisation at the Nanadie Well Project (Meekatharra), gold at the Duffy Well Project (Meekatharra) and Spargos Reward Project (Kalgoorlie), and nickel at the Kurnalpi Project (Kalgoorlie), all of which are located within the southern half of Western Australia (Figure 1).
During the December 2015 Quarter (the "Quarter") Mithril doubled the strike extent of the Stark copper-nickel-PGE Prospect at Nanadie Well through drilling and entered into a joint venture with Doray Minerals (ASX: DRM) for Duffy Well.
Chesser Resources (ASX: CHZ), Mithril's farmin partner at Kurnalpi commenced target generation activities and subsequent to the Quarter, Corona Minerals, Mithril's gold exploration partner at the Spargos Reward commenced an RC drilling program at the Spargos Reward Gold Deposit.
Corporate
Figure 1: Project Location Plan
During the Quarter, the Company spent $0.10M on the exploration activities outlined in this report and at 31 September 2015, the Company had cash reserves of $0.48M.
Nanadie Well Project (Copper-Nickel-PGE's)
(Mithril 100% and earning up to 75%)
Reverse Circulation drilling undertaken during the Quarter at the Stark Prospect (located 80 kilometres south east of Meekatharra, WA - Figure 1) has doubled the strike extent of copper-nickel-PGE mineralised massive sulphides to over 200 metres and identified a potential new "hanging wall" zone of mineralisation.
Two holes (NRC15001 and NRC15002) were drilled along strike from previously reported intercepts at Stark and returned the following results (downhole widths):
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2m @ 3.27% copper, 0.11% nickel and 0.94g/t PGE's from 157 metres in NRC15001,
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7m @ 1.41% copper, 0.31% nickel and 0.60g/t PGE's from 148 metres in NRC15002 including 4m @ 2.03% copper, 0.37% nickel and 0.62g/t PGE's from 151 metres.
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14m @ 0.40% copper, 0.08% nickel and 0.27g/t PGE's from 200 metres in NRC15001 including 3m @ 0.60% copper, 0.20% nickel, and 0.56g/t PGE's from 213.43 metres
The latest intercepts were returned from disseminated and massive sulphides (pyrrhotite-chalcopyrite- pentlandite-pyrite) that occur both within, and at the base of a mafic (gabbro) intrusion adjacent to a Banded Iron Formation (BIF) and metasedimentary sequence (Figures 2 to 4).
The zone of copper mineralisation in NRC15001 (from 157 metres) occurs above the base of the mafic intrusion at the same stratigraphic position as a previously obtained intercept 100 metres to the north in NDD15001 - 0.27m
@ 0.41% copper, 1.62% nickel, and 1.60g/t PGE's from 213.43 metres and 0.43m @ 2.19% copper, 0.12% nickel, and 0.77g/t PGE's from 213.70 metres (see ASX Announcement 23 March 2015).
As such, these intercepts are interpreted to represent a new "hanging wall" position which is developed parallel to the massive sulphides seen at the base of the mafic intrusion.
Copper-nickel-PGE mineralisation in the both the basal massive sulphide position and new hanging wall zone remain open in all directions and further drilling is required to determine their true extents.
In addition, the presence of an untested downhole EM off-hole conductor (modelled conductance up to 6,000S) approximately 150 metres beneath the existing massive sulphides reinforces the potential to extend the Stark mineralisation (Figure 5 and ASX Announcement dated 13 May 2015).
Stark lies on tenements subject to a Farmin and Joint Venture Agreement (Nanadie Well Joint Venture) with Intermin Resources Limited (ASX: IRC).
Under the terms of the joint venture, Mithril can earn a 60% interest in the project tenements by completing expenditure of $2M by 14 April 2018, and an additional 15% by completing further expenditure of $2M over a further 2 years (in total $4M over 6 years for 75% - see ASX Announcement dated 6 December 2013).
Figure 2 (left): Stark Prospect location plan.
Figure 3 (right) Stark Prospect drill collar location plan, showing drill hole traces, copper-nickel-PGE sulphides and background FLTEM (X component) image.
Figure 4: Stark Prospect 6,994,200N cross section showing NRC15002