Mithril Silver & Gold: Target 4 Opens the Next Chapter at Copalquin

0:16Mining Stock Daily: All right, everybody, welcome back in to Mining Stock Daily. We're going to head to the Mexican state of Drango here with our friends from Mithril, Silver and Gold. They do trade on the Venture Exchange with MSG, on the ASX with MTH, and on the OTCQB with MTIRF. The company has recently published new drill results coming out of Target 4, and they're good. Last time we spoke here with CEO Mr. John Skeet, we talked about using the work at Target 1 to really help unlock new areas of the Cobalt Creek corridor, and that seems to be working pretty well here with these recent drill results. So happy to welcome in John for this update.

0:56Mining Stock Daily: John, thanks so much. And again, it seems like it's on to the next chapter of Copalquid. Good morning, Trevor. Yes, good to be chatting about this again. And yeah, it's been a great journey over the last 18 months in particular. We've really sort of stepped up and done our geological homework on this large epithermal system, and it's starting to pay dividends now. So that I-grade resource will be published at the end of June, a target one. We've done a lot of de-risking work on that. It's already constrained within underground mining shapes and now we've applied what we've learned there to down here at the Copalkin structure that runs across the district.

1:33It connects target one to the Sandman Well workings at target four on the southern side of the district. So that that's a structure that's about one and a half kilometers. So we've drilled down the valley there and we've hit some good thick you know 11 meters to 14 meter intercepts there but very high grade up to three and a half kilos in one of the samples there and good grade widths and consistent now with the amount of drilling we've done there. So 550 meters out of the 1500 meters that we've drill tested there was some great results.

2:07Mining Stock Daily: Without maybe going into too much detail here, John, can you maybe just briefly summarize what Target won, what that interpretation provided for you and the team that was effective at Target for maybe just at a glance, what are the things that you took away that led to the success here with this recent drilling? Yeah, well, it's quite simple, really. There's just really, there was all the minerals, the gold and silver was deposited over a period of time. And then several million years later, you know, stuff sort of moved around a bit, some cracks opened up and this host mineral intrusive pushed up and just moved things around a bit.

2:48So it was a very similar looking rock to the host rock in some of these areas. So it wasn't well understood in the first two years of work we did there until we did the detailed laboratory work and properly identified that rock and that it was actually a much later stage. Then we realized what it was and we just have to drill through it and get to the other side and then we pick up the mineralization again. So that's really what it is in a nutshell. It's just something that's just annoying more than anything, but it hasn't taken away anything. It's just moved things around a bit. And we had to properly model it to be able to work out the resource that we have there at Target 1.

3:26And now we've applied that, gone back to doing some drilling at Target 4 there, and it's worked out well. We properly identified and logged that rock type. And now we're away in developing another resource area in the district. You mentioned some of those nice intervals with high grade just a couple of minutes ago, but beyond those grades themselves, what did those headline three holes tell you about the geometry or continuity of the structure that you

3:56Mining Stock Daily: maybe perhaps didn't understand before? Yeah, so when the first holes we drilled, we actually, you know, we hit some good structures. This was back in 2024. And then it looked like the vein, what happened to the vein? It just disappeared. So it was just because there was just this intrusive had gone through there. And we just needed to go deeper. So that's all we really did there. We just drilled deeper and we modeled that structure. and then we ended up getting down a bit, not even terribly deep down hole, but we got some really good intercepts and we can see that we've got quite an extensive vertical horizon there as well, you know, a couple of hundred meters.

4:36So it looks like it's got the geometry there to be quite a significant resource addition to this part of the district.

4:45Mining Stock Daily: Well, you've demonstrated mineralization, as you mentioned in the press release, that mineralization, about 550 meters of strike, 200 meters vertically but you talk about the potential for a kilometer and a half structure here john so how much evidence do you kind of have in the back of your pocket here with even with you know still early days a little drilling but promising drilling that specifically do you what do you need to see from drilling going forward to convince you that that really is one big continuous system well look we see on the surface we can see um you know with our With our high-resolution lidar we have and also the mapping we've done, we can see there is a structure there.

5:26But you don't know whether it pinches and swells and it changes angle. There's faults in there. So there is a bit of drilling there just to make sure we understand the geometry. But there's no reason to not think the mineralization continues over that distance. We just need to determine what the geometry of it is. So, you know, we've got a high-grade deposit at Target One, and then we can see that structure connecting up to the historic Northwest Trending's four-level mine, historic mine, which is one of the bigger producers in the district in the late 1800s, was the San Manuel mine. And this all lines up perfectly with that, and then it continues on further to the south.

6:06So, you know, we can see a clear structure there, and there are mines hosted in that structure, historic mines, and some of them are quite big. So, you know, it does look like we have got something there that is of significance. Yeah.

6:21Mining Stock Daily: John, I mean, when I first came upon your company and this story, I think the first time we chatted was in Frankfurt last fall. You know, at that time, it was really testing, you know, half a dozen silver targets, right? But it almost seems like within the last, you know, maybe this over the summer and specifically this news release and what you just described, the company's strategies may be less than working and discovering, working on these targets and proving them out, but really kind of encircling the entire thing as one big mineralized corridor. That requires filling gaps. So maybe does your drilling exploration strategy evolve going into the winter or into next spring to really start testing, you know, those gap areas between those targets?

7:12Mining Stock Daily: Or is it still too early to do that? I think what we've really been able to determine over the last 18 months of all the, you know, the detailed mapping and sampling we've done all across the district, we've done aerial magnetic survey. We've also done this year a structural study. And what we can see is that we do have all these deposits. We've drill tested 15 prospects within five different target areas across the southern part of the district now. And we've got excellent results in all of those that come back with good gold and silver grades, variable thicknesses, and at different levels in the system.

7:46But what we can see is that there are some key structures across the district. maybe there's two, maybe there's three of them. And this is just one of those structures that runs Northwest Trending, which is typical in the Ciemato trend or through this part of Mexico. And these look like they're the main feeder structures that are responsible for this widespread gold and silver. Because, you know, all those old workings and also the mapping and sampling we've done across it is just noise that's indicative of a deeper plumbing system, call it, that's responsible for this widespread gold and silver.

8:18So this is the first one of those structures that we've really started to get some progress on, and we'll keep developing that. And then we'll be able to apply that to some of these other key structural target areas that we see across the district that does connect up these multiple historic mines and work, in which there's a hundred of them now, these underground work in the southern part of the district. So it's starting to come together. You know, the guys, our geological expertise has really done a great work. there with Colin Jones, our technical advisor, and then a recent addition of James Barr, our VP exploration who has several years with Silvercrest at Las Chispas.

8:58And so he's bringing some really good experience and insight into what we have here at Coppelkin.

9:04Mining Stock Daily: Last time you and I chatted a little over a month ago, John, you did tell me that those late stage intrusive dikes were kind of, They did complicate, I guess, your original interpretation at Target 1. But you seem to get a grasp on them and really start to understand them. So it sounds like you took that same interpretation, which helped unlock Target 4. How transferable is that geological understanding to materially improve your odds targeting the rest of Copalquin? Is that applicable? Yeah, it is actually, because while it was annoying to have it there, and we had to do a lot of extra drilling at Tiger One, it took us longer to finally get that resource out in June this year.

9:48But what it's done is, because we've done so much detailed mapping across the district, we see where this post-mineral intrusive is. We call it TAP, T-A-P-P. And where we see that now, we know that there's, on the surface, that's a good indicator of structures that can potentially be mineralized. So we're seeing it does provide some opportunity. And also some of the early drilling where we intercepted that material, didn't know what was going on. We've gone back there, as in this case, and we've had some great success in drilling through it and getting to the other side and picking up the vein again.

10:23So it's created further opportunities, despite the fact that it is a bit annoying when we do have to model that as well as the veins.

10:34Mining Stock Daily: The technical report you just filed, it recommends 10 ,000 meters of exploration drilling across targets three, four, and five, about half of that for target one. Given that what you just saw with target four, it seems like targets are going to be competing for capital allocation more. So are you advancing or adjusting some of your spend based on any of these other targets or is it just steady as she goes? Yeah, look, we always have to keep adjusting. So we try and keep a six to four-week drill plan. And of course, we do have to modify that with results coming in. We're not just going to say, well, our plan was to go and drill there.

11:16So that's what we're going to do if we're starting to get something that's progressing well like we have here at Target 4. So we've moved one of the drills back there now. We're back there drilling to the southeast along that same structure. So we want to get, we're keen to see if this does continue all the way through to San Manuel. And down in the valley, that's obviously where most of the erosion has been. So as we go up onto the sides of the slopes, north and to the south there, we're climbing up another 250, 300 meters in elevation. And there's been no drilling in those areas. And they're quite, there's a lot of volume of material there.

11:52So we really want to get, now that we're getting some good results here, we may even move the second drill into this area as well. So we're doing some drilling at target three now where we've got some really good results early this year in some shallow drilling. So we want to just complete a few deeper holes there, see what we get there. While we're waiting for those results, we'll probably move one of those drills back down to the target four area.

12:17Mining Stock Daily: Do you expect a cadence of exploration results, drill results, to be kind of a little bit more consistent here throughout the rest of 2026? I guess now that we're into this type of drilling, so we were focusing the first half of the year really on just getting the resource drilling done. So we did 60 ,000 meters in total into that Tiger One resource here. And we still managed to put out that resource at less than$20 US per ounce gold equivalent as a discovery cost overall. So it's still a very efficient resource and it's 75 % indicated. indicated. So that was it. We're very happy with the result.

12:54It just took us a bit longer, probably a year longer than what we were thought two years ago to get that resource drilling completed to such an extent that we could put out a competent resource.

13:06Mining Stock Daily: As I mentioned in the beginning, the market was very rewarding of these drill results, and you saw a lot of buying, a nice little pop in the stock. Maybe give us a sense of what you're seeing or have we seen the worst of the silver equities move I mean it seems like everything was getting sold off since January February here John but we have seen the bounce not only the silver price so that obviously helps the silver equities and the explorers is the worst behind us or what are you hearing from your market and the people you chat with you know from Vancouver and U.S. I think look I think that from what I'm you know all the people I talk to you know we you know But there is a strong consensus that, you know, this second half of the year or the last quarter this year will be excellent for gold and silver.

13:54You know, we can see all the tailwinds for that. I mean, there'll be ups and downs and bumps along the way, but that's generally what the feeling is. And also with the sentiment, you know, towards investment in Mexico. I mean, Mexico is really sort of picking up again as the premier jurisdiction for certainly being the biggest gold as silver producing nation in the world. I mean, this is where you need to be to get that silver exposure. And what we love about this, about Copacan, is we've got that. It's a silver district, but we've got this high grade gold relative to the silver, which is really what makes this an attractive high margin proposition.

14:33Mining Stock Daily: All right, John, good to see you. Congratulations on these recent drill results from Target4. And obviously, you and I will be chatting base pretty often here in the next couple of months here with conferences coming up and then also new results here potentially to be hitting the market and getting your comments on as well. Appreciate your time. Have a great rest of your week. Thanks, Trevor. Good to catch up again as always. You soon. 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.

15:12Mining Stock Daily: Please do your own research or speak with a licensed financial representative before making any investment decisions.