ASX Release - 28 March 2017

Cobalt potential highlighted at Nanadie Well Copper Deposit
  • Selective resampling of drill spoils returns elevated cobalt including;
    • 1m @ 2.97% copper, 1.27g/t gold, and 0.15% cobalt, and
    • 1m @ 5.71% copper, 0.86g/t gold, and 0.07% cobalt
  • Previous exploration activities focussed primarily on copper with vast majority of higher grade copper intervals not analysed for cobalt
  • Nanadie Well hosts an existing 2004 JORC Inferred Resource of 36.07Mt @ 0.42% copper, 0.064 g/t gold - 151,506t copper and 74,233ozs gold (see note below)
  • Diamond drilling to test for further high-grade copper and associated cobalt planned for the June 2017 Quarter

Mithril Resources Ltd (ASX: MTH) is pleased to advise that a review of previously completed drill hole sampling has highlighted the cobalt potential of the Nanadie Well Copper Deposit (2004 JORC Code Compliant Inferred Resource of 36.07Mt @ 0.42% copper, 0.064 g/t gold - 151,506 tonnes copper and 74,233 ounces gold estimated by Intermin Resources Limited ASX: IRC in 2013) which is located 80 kilometres southeast of Meekatharra, Western Australia (Figure 1).

Previous drilling at Nanadie Well has focused on copper and gold, with the overwhelming majority of higher grade copper intervals (i.e. greater than 1% copper) never having been analysed for cobalt.

Mithril's selective resampling of historic RC drillholes within the deposit has returned elevated cobalt as well as nickel, platinum and palladium, the best results being (see Table 1 and Figure 2);

  • 1m @ 2.97% copper, 1.27g/t gold, 0.15% cobalt, 0.47% nickel and 478ppb platinum + palladium

    ("PGE's") from 128m hole NRC12015 (grab sample),

  • 1m @ 5.71% copper, 0.86g/t gold, 0.07% cobalt, 0.49% nickel and 128ppb PGE's from 146m in NRC12013 (grab sample), and
  • 1m @ 4.50% copper, 0.87g/t gold, 0.06% cobalt, 0.82% nickel and 168ppb PGE's from 128m in NRC12015 (grab sample),

While the resampling results highlight the deposit's cobalt potential, further work is required to better understand the grade and distribution of cobalt, nickel and PGE mineralisation at Nanadie Well and with this in mind, diamond drilling to test for further high-grade copper and associated cobalt is planned for the June 2017 Quarter.

Table 1: Nanadie Well Copper Deposit comparative grab sampling results

Intermin 2011 / 2012 Original Results

Mithril resampling

Hole ID

Easting

Northing

From (m)

Width (m)

Au g/t

Cu

%

Ni%

Au g/t

Cu

%

Ni%

Co ppm

Pd ppb

Pt ppb

NRC11004

693,042

6,994,747

88

1

0.33

4.13

0.36

0.87

4.50

0.82

564

158

11

NRC11004

693,042

6,994,747

53

1

-

-

-

0.29

1.34

0.11

165

84

6

NRC12012

693,041

6,994,786

100

1

0.56

2.83

0.10

0.32

1.84

0.11

172

20

4

NRC12016

693,043

6,994,558

153

1

1.61

6.65

0.69

0.68

3.05

0.29

269

128

14

NRC12015

693,042

6,994,599

128

1

0.93

1.78

0.32

1.27

2.97

0.47

1,455

416

61

NRC12013

693,042

6,994,707

146

1

0.71

5.57

0.40

0.86

5.71

0.49

700

118

10

NRC12013

693,042

6,994,707

147

1

0.69

3.95

0.37

0.93

3.72

0.27

508

136

21

NRC12011

693,023

6,994,747

113

1

1.34

4.05

0.09

1.76

3.39

0.08

224

237

8

NRC12032

693,072

6,994,746

30

1

0.43

4.10

0.04

0.54

5.74

0.09

396

86

8

NRC12036

692,986

6,994,901

24

1

1.61

6.86

0.08

2.37

4.60

0.04

82

50

16

NRC12019

692,940

6,994,900

89

1

0.41

5.00

0.12

0.43

3.37

0.12

274

187

12

About the Nanadie Well Copper Deposit

Intermin Resources Limited estimated a 2004 JORC Code Compliant Inferred Resource for the Nanadie Well Copper Deposit in September 2013 (see Intermin's ASX Announcement "Initial Resource Estimate for the Nanadie Well Cu-Au Project" dated 19 September 2013).

Nanadie Well Inferred Resource

2004 JORC Code Classification

Tonnes (Mt)

Copper %

Gold ppm

Contained Copper (t)

Contained gold (ounces)

Inferred

36.07

0.42

0.064

151,506

74,233

The information pertaining to the Nanadie Well Copper Deposit Inferred Resource was prepared and first disclosed by Intermin under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

The Inferred Resource is within a few meters of the surface and has been defined over 1 kilometre strike length, 50 - 150 metres (true width) and to a maximum depth of 220. The deposit remains open in all directions and lies within a broader 2 kilometres long mineralised zone (Figures 2 and 3) that has been identified by wide spaced reconnaissance drilling.

Nanadie Well's prospectivity is further enhanced by the presence a second parallel copper - mineralised trend 500 metres east called the Stark prospect.

Refer to Mithril's ASX Announcements "Drilling extends Cu-Ni-PGE massive sulphides at Stark" dated 21 December 2015, and "Priority copper-nickel-targets at Stark" dated 1 June 2015 for further information on the Stark Prospect.

About the Nanadie Well Project

The Nanadie Well deposit and Stark prospect lie on tenements subject to a Farmin and Joint Venture Agreement (Nanadie Well Joint Venture) with Intermin Resources Limited (ASX: IRC). 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 2019, and an additional 15% by completing further expenditure of $2M over a further 2 years.

Figure 1: Nanadie Well Project Location Plan. Figure 2: Nanadie Well Copper Deposit and drillhole locations - showing zones of bedrock copper mineralisation and location of cobalt grab samples (red stars).

Mithril Resources Limited published this content on 28 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 March 2017 00:29:08 UTC.

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