Adelaide, June 6, 2017 AEST (ABN Newswire) - Mithril Resources Ltd (ASX:MTH) is pleased to provide an exploration update for the Mexi Nickel Prospect and the Nanadie Well Project (located 50 kilometres north-northeast of Kalgoorlie and 80 kilometres southeast of Meekatharra, WA respectively - see Figure 1 in the link below).

- RC drilling at the Mexi Nickel Prospect returns 40m @ 0.46% nickel, 305ppm copper, 354ppm cobalt and 66ppb PGE's from surface

- Diamond drilling underway at the Nanadie Well Project testing:
o down dip of 6m @ 1.39% copper, 0.24g/t gold and 9m @ 2.03% copper, 0.35g/t gold at the Nanadie Well Copper Deposit, and
o a new bedrock EM conductor identified along strike from existing high-grade copper mineralisation at the Stark Copper Nickel Prospect

- Drilling results expected mid - July 2017

At Mexi, Reverse Circulation hole KNRC001 was drilled to test a broad zone of shallow nickel-copper-cobalt - platinum + palladium ("PGE's") anomalism previously intersected by Mithril aircore drilling within weathered ultramafic rocks (see Figure 2 in the link below).

KNRC001 intersected a broad zone of weakly disseminated sulphide - bearing high MgO ultramafic (peridotite) beneath a zone of strong weathering - sampling of which returned 40m @ 0.46% nickel, 305ppm copper, 354ppm cobalt and 66ppb PGE's from surface.

Maximum analytical values for any single metre sample of the fresh disseminated sulphides were; 1730 ppm nickel, 514 ppm copper, and 91 ppb PGE's.

To assist with ongoing assessment of Mexi, KNRC001 has been cased with PVC to provide a platform for downhole EM surveying.

At Nanadie Well, diamond drilling has commenced at the Nanadie Well Copper Deposit (2004 JORC Code Compliant Inferred Resource of 36.07Mt @ 0.42% copper, 0.064 g/t gold - 151,506 tonnes copper and 74,233 ounces gold estimated by Intermin Resources Limited (ASX:IRC) in 2013).

The geological setting of the deposit is not well understood with the majority of previous drilling (and assaying) focused primarily on copper and gold, and Mithril's recent work has demonstrated the potential of the deposit to host other minerals with the copper, such as cobalt, nickel and PGE's (see Mithril's ASX Announcement dated 28 March 2017).

To better understand the deposit's geological setting, one diamond hole (300 - 350 metres) will be drilled within the central portion of the deposit (6,994,720mN section - see Figure 3 in the link below) down dip from a previous intersection of 160m @ 0.37% copper, 0.07g/t gold from surface in NRC12013 which includes 6m @ 1.39% copper, 0.24g/t gold from 89 metres and 9m @ 2.03% copper, 0.35g/t gold from 140 metres.

This will be the first diamond drilling carried out on the deposit.

Also at Nanadie Well, a recently completed high-powered SQUID ground EM survey over the Stark Copper Nickel Prospect, which lies 1,000 metres east of the Nanadie Well Copper Deposit, has identified multiple bedrock conductors (named "M1" - "M5d": conductivity thicknesses ranging from 660S to 5,000S) with the M1 conductor interpreted to represent a southern extension to existing high-grade copper mineralisation (see Figure 3 in the link below).

The large M1 conductor lies below and immediately south of drillhole NRC15001 which previously intersected mineralisation in two parallel zones, i.e.; 2m @ 3.27% copper, 0.10% nickel, 0.55g/t gold, 0.38g/t PGE's from 157 metres and 14m @ 0.40% copper, 0.08% nickel, 0.04g/t gold, 0.22g/t PGE's from 200 metres.

The M1 conductor has not been previously drill tested and one diamond hole (300 - 350 metres) will be drilled to test the target following completion of the Nanadie Well Copper Deposit drilling (see Figure 3 in the link below).

Both holes to be cased for future downhole EM geophysical surveying and results are expected mid-July 2017.

About the Mexi Nickel Prospect and the Nanadie Well Project

Mexi is located on the Lignum Dam Project which is 100% - owned by Mithril and is considered prospective for gold and nickel mineralisation.

The Nanadie Well Deposit and Stark lie on tenements subject to a Farmin and Joint Venture Agreement (Nanadie Well Joint Venture) with Intermin Resources Limited. Under the terms of the joint venture, Mithril can earn a 60% interest in the tenements by completing expenditure of $2M by 14 April 2019, and an additional 15% by completing further expenditure of $2M over a further 2 years.

About the Nanadie Well Copper Deposit

Intermin Resources Limited estimated a 2004 JORC Code Compliant Inferred Resource for the Nanadie Well Copper Deposit in September 2013 (see Intermin's ASX Announcement "Initial Resource Estimate for the Nanadie Well Cu-Au Project" dated 19 September 2013).

The information pertaining to the Nanadie Well Copper Deposit Inferred Resource was prepared and first disclosed by Intermin under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

The Inferred Resource is within a few meters of the surface and has been defined over 1 kilometre strike length, 50 - 150 metres (true width) and to a maximum depth of 220. The deposit remains open in all directions and lies within a broader 2 kilometres long mineralised zone that has been identified by wide spaced reconnaissance drilling.

Nanadie Well's prospectivity is further enhanced by the presence a second parallel copper - mineralised trend 1,000 metres east called the Stark prospect. Refer to Mithril's ASX Announcements "Drilling extends Cu-Ni-PGE massive sulphides at Stark" dated 21 December 2015, and "Priority copper-nickel-targets at Stark" dated 1 June 2015 for further information on the Stark Prospect.

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About Mithril Resources Limited

Mithril ResourcesMithril Resources Limited (ASX:MTH) is an Australian resources company whose objective is the creation of shareholder wealth through the discovery and development of mineral deposits.

The Company is actively exploring throughout the Western Australian Goldfields and Kimberley Districts for economic gold, copper, nickel and zinc.

The Company is also exploring South Australia’s far western Coompana Province for magmatic nickel – copper deposits with OZ Minerals Limited.

  


Contact

Mithril Resources Ltd
David Hutton
Managing Director
E: admin@mithrilresources.com.au
T: +61-8-8132-8800
F: +61-8-8132-8899
www.mithrilresources.com.au



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