Mithril has two projects in the Meekatharra District - Nanadie Well and Duffy Well.
Nanadie Well is located 80 kilometres south east of Meekatharra and hosts the Nanadie Well Copper Deposit where a 2004 JORC Code Compliant Inferred Resource of 36.07Mt @ 0.42% copper (151,506 tonnes copper) was estimated by Intermin Resources Limited (ASX: IRC) in September 2013 (refer ASX announcement dated 19 September 2013) and the Stark copper-nickel-PGE prospect.
Copper-nickel-PGE mineralisation at Stark remains open in all directions and further drilling is required in particular to test a downhole EM off-hole conductor (modelled conductance up to 6,000S) approximately 150 metres beneath existing massive sulphides.
The Stark prospect and the Nanadie Well Deposit lie on tenements subject to a Farmin and Joint Venture Agreement (Nanadie Well Joint Venture) with Intermin.
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 2017, 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).
In addition, Mithril also has two wholly owned Exploration Licences at Nanadie Well which are prospective for gold, nickel and copper and lie along strike and adjacent to both the Nanadie Well Deposit and Stark.
Duffy Well is located 30 kilometres east of Meekatharra and covers the interpreted southern extension of the Gnaweeda Greenstone Belt where Doray Minerals Limited ("Doray" ASX: DRM) has intersected high-grade gold mineralisation in RC drilling at the Turnberry Prospect including 3m @ 10.1g/t gold from 149 metres, 5m @ 17.4g/t gold from 71 metres, and 4m @ 17.9g/t gold from 45 metres (Doray ASX Announcement dated 11 June 2015).
Duffy Well is highly prospective for gold and multiple targets have been identified from aeromagnetic data and a review of previous exploration (which typically comprises reconnaissance RAB and aircore drill traverses with little or no follow-up).
The targets are typically characterised by zones of structural complexity with coincident bedrock gold (+50ppb) and arsenic (+100ppm) anomalism within wide-spaced drillholes.
Doray is exploring Duffy Well under the terms of a Farm-in and Exploration Joint Venture Agreement whereby they can earn an initial 51% interest by completing expenditure of $300,000 within two years (by 3 November 2017) and can elect to earn an additional 34% interest by completing further expenditure of $200,000 within another one year (in total 85% by spending $500,000 over three years).
If Doray elects not to earn the further 34% interest, then Mithril has the right to contribute on a pro rata basis or dilute as per an industry standard formula. If Doray has earned its 85% interest, Mithril has the right to contribute on a pro rata basis or dilute as per an industry standard formula. If Mithril's interest dilutes at any time below 10% it will be deemed to have withdrawn and will be entitled to receive a 1.5% Net Smelter Royalty on all Precious and Base Metals.
Doray is required to keep the tenements in good standing at all times and can only withdraw after it has spent a minimum of $100,000 in the first year (ie by 3 November 2016).
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