Mithril Resources Ltd. released further results from its Copalquin Gold Silver District, Mexico. A metallurgical test work program following the maiden mineral resource estimate (MRE) has been completed by SGS Laboratories. The high-grade maiden MRE released 17 November 2021 is given below.

2,416,000 tonnes @ 4.80 g/t gold, 141 g/t silver for 373,000 oz gold plus 10,953,000 oz silver (Total 529,000 oz AuEq*) using a cut-off grade of 2.0 g/t AuEq*28.6% of the resource tonnage is classified as indicated. The sample used for the test work is a composite sample from El Refugio crushed drill core. The average grade of the composite is similar to the average grade of the maiden resource estimate.

The calculated composite grade from the flotation test work is 4.52 g/t gold and 124 g/t silver. Flotation test work has been completed using the same reagent scheme determined for the Palmarejo deposit (located in the Sierra Madre Trend and north of the Copalquin District) test work, due to the similarities in geology and mineralogy between Palmarejo and El Refugio at Copalquin. Intensive cyanide leaching of the flotation concentrate and low-level cyanide leaching of the flotation tailings allows high recovery of silver to be achieved.

Cyanide leaching of silver is slower under the typical conditions used for gold only leaching. Recovering a high proportion of the silver into a concentrate (by flotation or gravity) allows the concentrate to leached under intensive conditions resulting in higher silver recovery. The overall recovery to solution is 96.5% for gold and 91% for silver.

Gold and silver would be extracted from solution using the widely used Merrill-Crowe zinc precipitation method and then smelted to produce metal gold-silver ingots. The process flowsheet for El Refugio-La Soledad resource material being tested. This is the same flowsheet is used at similar deposits in the Sierra Madre Trend, Mexico including Palmarejo and SilverCrest Metals' Las Chispas (under construction).

Further metallurgical test work will allow the crushing, grinding, thickening, flotation and filtration equipment sizes to be determined.