Mithril Resources : • Gold drilling underway at Spargos Reward Gold Deposit

20160118 Gold drilling underway at Spargos Reward Gold Deposit FINAL

ASX Release - 18 January 2016

Gold drilling underway at Spargos Reward Gold Deposit

• 1,500 metre RC drilling program to infill and test for extensions to previously intersected high- grade gold mineralisation including;
  • 8m @ 10.30 g/t gold from 242 metres including 3m @ 25.73 g/t gold o 10m @ 4.60 g/t gold from 256 metres including 3m @ 13.00 g/t gold o 10m @ 3.18 g/t gold from 250 metres including 2m @ 8.15 g/t gold o 4m @ 6.63 g/t gold from 220 metres including 1m @ 8.15 g/t gold
  • 10m @ 2.61 g/t gold from 159 metres including 3m @ 5.53 g/t gold

Mithril Resources Ltd (ASX: MTH) wishes to advise that Corona Minerals Limited ("Corona"), Mithril's exploration partner at the Spargos Reward Project (located 30 kilometres West Kambalda, WA - Figure 1), has commenced a 1,500 metre RC drilling program to infill and test for extensions to existing high-grade gold mineralisation at the Spargos Reward Gold Deposit.

Spargos Reward was historically mined to a vertical depth of 120 metres (underground and open pit) with total production of approximately 29,260 ounces @ 8g/t gold.

RC drilling by Mithril in 2013 beneath the historic workings intersected high-grade gold mineralisation which remains open both along strike and down-dip (Figures 2 - 3 and ASX Announcement dated 27 March 2013) including:

• 8m @ 10.30 g/t gold from 242 metres in 13SPRC07 including 3m @ 25.73 g/t gold from 243 metres,
• 10m @ 4.60 g/t gold from 256 metres in 13SPRC09 including 3m @ 13.00 g/t gold from 260 metres,
• 10m @ 3.18 g/t gold from 250 metres in 13SPRC08 including 2m @ 8.15 g/t gold from 253 metres,
• 4m @ 6.63 g/t gold from 220 metres in 13SPRC04 including 1m @ 8.15 g/t gold from 222 metres, and
• 10m @ 2.61 g/t gold from 159 metres in 13SPRC05 including 3m @ 5.53 g/t gold from 162 metres.

  
  

  Corona is exploring the Project under the terms of the Spargos Reward Tenement Sale and Joint Venture Agreements, whereby:

  
  

• Corona has purchased an initial 50% equity interest in the Project tenements for A$100,000 cash,

• Corona can earn a further 15% equity (for a total of 65%) by spending A$150,000 on exploration by 11 May 2016 and in addition,

• Corona can earn a further 20% equity (for a total of 85%) by electing to sole fund exploration through to the completion of a positive scoping study on a 2012 JORC Code Compliant Mineral Resource.

The Spargos Reward Project comprises P15/4876-4883, 4886, 5763, 5791, and E15/1423. Minotaur Exploration Ltd (ASX: MEP) holds the nickel rights to P15/4876-4883, and 4886 which are excluded from the joint venture agreement.

Figure 1: Spargos Reward Project Location Plan

Figure 2: Spargos Reward Gold Deposit Cross Section

Figure 3: Spargos Reward Gold Deposit Long Section