20160502 New Lithium targets at Spargos Reward FINAL

ASX Release - 2 May 2016

New lithium targets at Spargos Reward
  • Historic lithium mineral occurrences and targets identified at the Spargos Reward Project
  • Spargos Reward is located 18 kilometres south of NeoMetals Ltd.'s Mt Marion Lithium Project
  • Four targets display strong similarities to Mt Marion; pegmatite intrusions within mafic - ultramafic rocks, cross cutting structural features, coincident radiometric anomalies and historic tin - tantalum - lithium mineral occurrences
  • No recent lithium exploration
  • Field work to commence during the current June 2016 Quarter

Mithril Resources Ltd (ASX: MTH) is pleased to advise that it has identified four new lithium targets at the Spargos Reward Project located 18 kilometres south of Neometals Ltd.'s (ASX: NMT) Mt Marion Lithium Project (approximately 55 km south of Kalgoorlie, Western Australia - Figures 1 and 2).

The targets have been identified from a historical data review and prioritised on the basis that they display strong similarities to the Mt Marion lithium deposits (NeoMetals Ltd.'s website and ASX Announcement dated 29 January 2016) in that they are pegmatite intrusions within a mafic - ultramafic rocks, cross cutting structural features, coincident radiometric (potassium) anomalies, and historic tin - tantalum - lithium mineral occurrences.

Despite occurring within close proximity to Mt Marion and the Spargos Reward Gold Deposit, none of the targets have received any modern lithium exploration and field evaluation is planned for the current June 2016 Quarter

Target Details (Figures 3 - 5)

Target A is a 400 metre long, north south trending zone of outcropping pegmatites, prospecting pits and coincident radiometric anomalies within a mafic - ultramafic belt. Located immediately adjacent the Coolgardie to Norseman Highway, the target also contains a number of historic tin - tantalum - lithium mineral occurrences. While the southern continuation of the target lies within an excised tenement held by a third party, exploration data suggests that the bulk of the target lies within the Spargos Reward Project tenements.

Target B is a 230 metre long, northeast trending radiometric anomaly that lies 2 kilometres south along strike from Target A within an area of cross cutting structures interpreted from aeromagnetic data and mafic - ultramafic rocks.

While both targets have been subject to previous exploration for gold and nickel, no drilling has been undertaken and auger geochemical sampling which has been carried out through the area, has not been analysed for lithium.

Target C lies 2.2 kilometres west of Target A and comprises two discrete radiometric anomalies that lie within a interpreted zone of north-west crosscutting features within a mafic - ultramafic belt, directly south of Target D.

Target D is a historic tin - tantalum - lithium mineral occurrence located proximal to the contact of mafic/ultramafic rocktypes and metasediments.

Both Targets C and D lie west of any previous gold and nickel exploration activity and have not been explored for lithium.

About the Spargos Reward Project

The Project is subject to the Spargos Reward Tenement Sale and Joint Venture Agreements with Corona Minerals Limited ("Corona"), 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 elect to earn a further 20% equity (for a total of 85%) by sole funding 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 Mt Marion Lithium Project Spargos Reward Project Figure 2: Spargos Reward Project showing existing tin - tantalum - lithium occurrences (red dots) and gold occurrences (yellow dots), and regional geology. Mafic - ultramafic rocks are shown as green or purple zones. Spargos Reward Gold Deposit Lithium Target D Lithium Target A Lithium Target C Lithium Target B Figure 3: Spargos Reward Project Lithium Targets showing geology, radiometric anomaly outlines (red polygons), all drilling and interpreted cross - cutting features. Existing tin - tantalum - lithium occurrences are shown as red dots and gold occurrences as yellow dots. The hatched green tenement at the southern end of Target A is owned by a third party and is excised from the project.

Mithril Resources Limited issued this content on 02 May 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 02 May 2016 01:28:09 UTC. Original document available at http://www.mithrilresources.com.au/pdfs/2016-05-02-02223120160502_New_Lithium_targets_at_Spargos_Reward_FINAL.pdf