Mithril Resources Limited (ASX:MTH) has successfully intersected high-grade gold mineralisation at the Kombi gold prospect located circa 70 kilometres southeast of Meekatharra in Western Australia.
The highlight drilling results included:
- 4 metres at 12.76 g/t gold from 20 metres; and
- 1 metres at 5.44 g/t gold from 20 metres.
The company’s shares closed 33% higher on Friday, at $0.004.
Mithril drilled six reverse circulation holes totalling 504 metres beneath the historic Gloria June gold workings (reported production of 1,094 tonnes at 10.8 g/t gold) and at an adjacent soil anomaly.
With no historic drilling beneath the most recent holes, the new intercepts remain open in all directions and are a high-priority for follow-up drilling.
The company plans to undertake further drilling at Kombi as soon as possible.
Under the terms of the joint venture with Intermin Resources (ASX:IRC), Mithril can earn a 60% interest by spending $2 million by April 2019 (circa $1.24 million spent to date).
The company can earn an additional 15% by completing further expenditure of $2 million over a further two years.
Mithril also has several other properties which are explored by a number of well-known third parties including Oz Minerals (ASX:OZL), Doray Minerals (ASX:DRM) and Chesser Resources (ASX:CHZ).