Mithril Silver & Gold Looks to Double Its Resource at Copalquin

0:17Mining Stock Daily: All right, we're on to day two here, Beaver Creek Precious Metals Summit and lots of conversation regarding exploration, mine development in Mexico this morning. In fact, a lot of the presentations going on in the presentation rooms are focused on just that. And we're going to stick with that conversation here with our friends from Mithril, Silver, and Gold, trading on the Venture Exchange with MSG, and also on the ASX with MTH and on the OTCQB with MTIRF. Happy to welcome in John Skeet once again. Hasn't been too long, John, since you and I last spoke, but you have been on the road, I feel like, ever since.

0:54Mining Stock Daily: So glad to finally have you back. Yes, it's great. Yeah, this is the busy time of year, so a lot of events going on between now and the end of the year. So it's good to be back on the road again and pitching our story to a lot of good audiences. What's the reception been not only after day one of Beaver Creek, but what you've been doing the last couple of weeks? Look, very positive. And a few people that I've caught up with for the first time in 12 months have been very impressed with the progress we've made there. So this last 12 months has really been quite pivotal in the advancement of all the work we're doing in the district there.

1:26not just in advancing the district as a big exploration epithermal system there, but also we've now got a high-grade resource. We're doing the PEA on that. So there's some clear good catalysts that are coming up between now and the end of the year and also early next year that we've got in the pipeline.

1:42Mining Stock Daily: Yeah, so this conversation might be a little bit of a follow-up from the last one you and I had a few weeks back, but let's do start today off with that resource update because you've moved 75 % of that target one into indicated. How important was that data point? How important is that to bring to potential investors and into your one-to-one meetings this week? It's important in terms of demonstrating that we do have something that's developable there and that we can put some economic parameters on it. And then a lot of the analysts in the industry, they want to see some basis to start to sort of build up a valuation for a particular property and also for a company.

2:21And that's our primary focus. because that's quite a simple story. Single focus, single district, gold, silver, Mexico management and board. We've been highly experienced in this region and we love doing things in Mexico. We have done for 20 years. And so this resource, particularly getting up to such a high confidence, and we not only did we produce a geological resource there, but we also published it as a fully diluted and constrained underground mining-shaped resource. So we've taken that large step towards PEA, and we've kicked that off now, the PEA. We've got a group in Denver here who's doing that work for us, and we expect to have some numbers out, hopefully by the end of the year, but if not, it'll be early next year we'll put some numbers in.

3:08We're expecting some very positive metrics from that. Very high MPV after tax, and also a very low-cost, high-margin producer. So that's going to be a critical step, but not only just the resource there, But the geologic model we developed there, we've applied that to our first other area in the district now. And the first three holes there were fantastic results. So it proved that that has worked. And as we advance this new target area, target four, which is adjacent to the target one resource area, we can then now, as we build up that model, we'll apply that to another half a dozen or so structural targets across the district.

3:46So really this has been a big leap in our geological understanding of this and really truly unlocking and understanding why we've got this widespread gold and silver all across this 70 square kilometer property. There is a deeper plumbing system that's responsible for all this. So we're now making those steps there to demonstrate that and find that. And that are really what will then really advance this along and particularly our market cap.

4:12Mining Stock Daily: Do you envision the entire Copalquin property to be strictly or mainly an underground type of mining scenario? Yes. Okay, perfect. The reason I ask that is because how important, obviously, Target 1 has been the priority. That's where the majority of the resource is. You have this underground geological model here. Now, what does it mean to aggressively expand the other targets with the potential of linking Target 1 to 4, you know, to the other ones around? Yeah, so Target 4 is lower elevation, so we're much more silver rich there. And it is like a structure that does connect the Target 1 resource across the valley to the San Manuel 4-level historic mine.

4:56So there's obviously something significant there because on either end of that, there's two significant historic mines there that were probably the two main producing mines in the district in the late 1800s. So this structure is one and a half kilometers across the valley there. We're drilling down in the middle of that structure. We've confirmed 500 meters of strike length there. And we're stepping out there to confirm if it is actually one and a half kilometers that we currently sort of see it being at this stage. And we're looking for potential resource there, Target, as being a similar size to what we have at Target 1.

5:33So we're looking in the near term to approximately double our resource inventory in this part of the district. We've got a dozen targets across the district. We've successfully drill-tested 15 prospects within five target areas. So we know we do have an extensive system there. And getting these resource steps that we're doing now, we expect that now to get more rapid. And this will continue to be a growth story, exploration-wise, but now underpinned with a high margin PEA on the target one.

6:08Mining Stock Daily: So you're funded, budgeted for 12 ,000 meters, two rigs turning. Majority and priority is now target four in the near term? I've got two rigs at target four, yeah. So we had 25, yeah, so I had one rig earmarked there. So when we got those first three excellent hits there, we thought let's put the second drill there and let's just take them in third steps along the structure there and just see how big it is. and you know there's quite a vertical extent there we've got three or four hundred meters vertically to test there as well so it is a big big volume there of potential materials so there's a bit of work to do there but so far so good we're getting some good results there you've had some great bonanza grade hits on target one how important is it to replicate that grade not only target four but throughout the throughout the district look there's definitely we've seen that in in other drill results and the channel sound we've done across the district yeah so target one yeah we had two globally significant drill intercepts there they were top both top 20 intercepts one in 2020 21 and one in 2024 so and that really highlights the it is a silver district it's by far the most abundant metal there but that's what really was the standard here was the gold grades that are associated with the silver and that are persistent all across the district you know multi-ounce intercepts that we've had in numerous drill intercepts across the whole district And that's also along with multi-kilogram silver intercepts as well, like we've had now here at Tiger IV where we're currently drilling.

7:35We've had up to 3.5 kilos of silver in some of the internal intercepts within those broader intercepts that we've drilled today. Okay.

7:45Mining Stock Daily: You have reported some recoveries, metallurgical test recoveries, 96%, 91%. 96 % gold, 91 % silver, so incredible recoveries. then that mineralization uh doesn't sound like lead and zinc is much of a problem no target one resource is quite high in the system so it is it's uh gold and silver only there's no there's no arsenic there's no there's no base metals there it's very clean simple metallurgy and that's why we got such high we knew we were going to get high recoveries there and from my previous experience at palmareco to the north i just used the same optimized parameters there that we've developed there and applied those to the target one resource material.

8:24So we got, yeah, we weren't surprised by that. So we expected to get very good recoveries there.

8:29Mining Stock Daily: Similar expectations for the other targets when you do eventually start doing that test work? Yeah, target three is very similar to target one. So we can see we've got a big, more gold dominant system up there as part of the, in the epithermal profile. Down in the valley at target four, we're much more silver rich. So we're about probably the opposite way around. We're about two times the value in gold in compared to silver in target one We're around the other way in target four probably a bit more value in the silver And as we go down deeper there We see copper lead and zinc coming in and quite significant grades in some of the the deeper mineralization there So so as you expect in these epithermal systems, that's typical as you get in deeper gets more base metal rich And so the metallurgy there will be a bit different.

9:12Maybe we only use flotation there produce a concentrate and and sell that to a smelter. Whereas Target One, we'll be producing metal on site for that one and giving the full value.

9:23Mining Stock Daily: John, as the story unfolds for the rest of 2026, how do you kind of see this story for Club of Equipment continuing to play out? What is further success? What do you need to accomplish here over the next four months? It's probably the first thing is the PEA, getting some attractive economic metrics out from that, and that'll be great for the analyst community to really have something they can value and then apply that and look at what's the upside across the district there, using that as a basis. And then we've clearly got Target 4 coming on us as the next resource area and then applying that to other parts of the district to keep growing the resource.

10:05But then the thing that I'm most excited about is the geologic model we'll develop for Target 4 that will probably then help us in the next step to finding the main culprit and source for this widespread gold and silver across the district. So that structure at Target 4 is probably a splay coming off the main feeder vein, if you can call it that. That's somewhere down a bit deeper. That's clearly the source of this widespread gold and silver all across the district. So when we find that, then we're away. We can then really sort of expand the resource potential here.

10:43Mining Stock Daily: You and I are going to have a lot to talk about over the next couple of months. So I look forward to that. I mean, a ton of drill results. I would be remiss if I didn't kind of address, you know, ongoing security concerns in Mexico. I just got out of Visa Silver's first presentation. CEO Michael Conner addressed it. There was a little bit of security concern coming from your camp as well a couple of months ago. But it seems to be pretty stable and quiet as of recently. nothing newsworthy that has hit the market. Has the security risk stabilized Mexico where you're at? Generally, overall, it seems like it has.

11:18There were a couple of, you know, Vizsla's obviously was a standout incident. We still would like to know really what happened there, what went wrong, because it was such an unprecedented event there that we'd never seen anything like that. So that's down in southern Sinaloa state, a long way from where we are. our particular area right in our location we've never had any problems at all so we've had no we've never been asked for money for example we've never had anyone threaten any of our people and we have great relationships with everyone we've been i've been there personally for eight years in that region there i was there first as a private company before we ended up putting this into mithril and taking control of that on the asx so i've built up some good network of contacts there and and you know we've we've taken really where we've got the benefits there of all the good work we've done there supporting schools employing people and and supporting medical brigade there that comes in and because it's quite an isolated community the government doesn't really do much for their people in those sort of places because there's not many people and they're quite isolated whereas we've really provided a lot of infrastructure support there so that's that's our security there is that we're good operators and everyone loves us and no one wants to see us go away so they'll do anything to make sure that we're we're essentially protected there but we've never had any threats at all in that

12:39Mining Stock Daily: area well you did put on a news release i got the news about uh in an incident in an airplane yeah that was look that was unfortunate that wasn't in our area that was in chihuahua state i was flying back to chihuahua and um we just were in the wrong place at the wrong time really and uh we had to make a forced landing on an airstrip, a local airstrip there, and there were a couple of groups who were fighting each other. And we just got caught up in that. Once they realised the mistake that they'd made, it all settled down very quickly. The military took control. They responded very quickly to assist us.

13:11And in the end, even though it was a bit of a frightening experience for us at the time, myself and my two geologists and the pilot, But it did precipitate some action there from the government there to sort of, you know, destabilize that part of Chihuahua, southern Chihuahua state. And that's been to the benefit of all the communities around there. So at least a positive came out of it. Okay. Yeah.

13:35Mining Stock Daily: Yeah, that's probably terribly frightening. But thanks so much. I don't know, are you heading home? Back to Mexico after this? Yeah, I'll be back in Mexico just for a week. And then I've got Nordic Funds event in the middle of October. Ah, marketing a Mexican silver play in the Nordics. Yeah. Yeah, very good. Yeah, I've been told it's a good event to go to, and it does look good. It looks well organized, so that'll be my first time there. Okay. And we do have quite a few European shareholders on the register. 40 % of our stock is with global mining institutions. The biggest one is out of London, Jupiter, and also Schroeder out of London as well.

14:09Okay. And XES is also a European fund. Yeah, so there's a lot of important funds there that are looking at, particularly the silver space.

14:18Mining Stock Daily: Yeah, very good. Okay. All right. Well, John, good to see you. Thanks again. Pleasure running into you a couple times this week. And safe travels to you. Do enjoy. Get some rest next week. Okay. Thanks forever. Yeah. That's your update for Mithril Silver and Gold, everybody. And that's a jump start into day two of Beaver Creek. So stay tuned. The information presented should not be considered investment advice. Mining Stock Daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.