To ensure the Company maintains its focus on the Copalquin Gold Silver Project, Mithril has exploration partners to farm-in, sole fund and operate exploration activities on its Australian assets. These include:
- Great Boulder Resources (GBR.ASX) at the Lignum Dam Project;
- Auteco Minerals (AUT.ASX) at the Limestone Well Project;
- Carnavale Resources (CAV.ASX) at the Kurnalpi Project; and
- CBH Resources Limited (“CBH”) at the Billy Hills Zinc Project.
Having farm-in exploration partners solely fund all exploration costs, ensures that the Mithril tenements are kept in good standing for the duration of the respective partnership agreements with the potential to benefit from prospectivity and exploration upside.
Billy Hills Zinc (Billy Hills)
- Mithril 100%; and CBH Resources Limited earning up to 80% interest by completing expenditure of A$4M over 5 years.
- The binding farm-in Heads of Agreement (Agreement) is conditional upon Mithril obtaining a Heritage Clearance to drill the Firetail Prospect. Mithril worked with the traditional owners of Billy Hills to obtain the necessary clearance however due to the outbreak of COVID-19, all dealings with Aboriginal communities in the area ceased for an indefinite period in order to protect the health of the local population. Mithril and CBH remain committed to the Project and agreed to extend the period, to satisfy the Agreement’s Condition Precedent, first from May 2020 to November 2020 and during the quarter a second extension to March 2021, in recognition of the current circumstances.
Kurnalpi Project (Kurnalpi)
- Mithril 100%; and Carnavale Resources earning an initial 80% interest by keeping the tenements in good standing over three years and paying Mithril A$250,000 cash.
- In September 2020, Carnavale undertook a small drilling program at its Grey Dam Nickel Project (including on Mithril tenements) following a Fixed Loop Electromagnetic (FLEM) geophysical surveying over ultramafic/mafic sequences prospective for Kambalda style nickel sulphide, similar to the nearby Black Swan and Silver Swan Nickel Mines. The drilling confirmed and enhanced the understanding of the geology of the drilled area. The geochemistry and multi-element assay results remain positive for the development of nickel sulphide mineralisation within the project area (see Carnavale’s ASX Announcement 6th November 2020).
- Carnavale’s Grey Dam Nickel Project includes Mithril’s Kurnalpi Project Tenements in which it is earning an initial 80% interest. Carnavale’s September 2020 drill program included drilling on the Mithril tenements (see Carnavale’s ASX Announcement 11th September 2020).
Lignum Dam Project (Lignum)
- Mithril 100%; and located 60 kilometres northeast of Kalgoorlie, WA, Great Boulder Resources has the right to earn up to 80% of the project by spending $1M over 4 years and is exploring for economic gold and nickel sulphide mineralisation along strike from the previously mined high-grade Silver Swan nickel deposit.
Limestone Well Project (Limestone)
- Mithril 100%; Auteco Minerals can earn up to an 80% interest in the project by completing exploration expenditure of A$2.5 million over five years; and
- Following drilling (see Auteco’s ASX Announcement dated 14 October 2019), Auteco elected to continue sole-funding the exploration work at Limestone Well by completing exploration expenditure of $1.5M by August 2021 to earn an initial 60% interest.
Mithril also retains a small project 150km east of Alice Springs in the Northern Territory (“Leaky Bore”) which contains the Basil Copper Cobalt Deposit (JORC Code 2004 – Inferred Resource of 26.5Mt @ 0.57% copper, 0.05% cobalt – see Mithril’s ASX Announcement dated 21 March 2012).