Copalquin — treasure of the Sierra Madre.
An early-exploration 70 km² district hosting high-grade gold and silver mineralisation across several major trends — and home to the upgraded Target 1 Mineral Resource: 464,000 oz AuEq* (Ind) and 151,000 oz AuEq* (Inf) within a small 1.5 km² footprint.
*AuEq (gold equivalent) = Au (g/t) + [Ag (g/t) × (Au price ÷ Ag price) × (Ag recovery ÷ Au recovery)], using metal prices of US$3,300/oz gold and US$50/oz silver with metallurgical recoveries of 96% gold and 91% silver from test work on Target 1 composite samples. The Target 1 Mineral Resource is reported under JORC 2012 per ASX announcement 30 June 2026, “Mithril Derisks Target 1 with 75% Indicated Resource” — an underground mining-shape-constrained and diluted estimate at a 1.5 g/t AuEq cut-off. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Refer to the Company's ASX disclosures for full parameters.
Widespread mineralisation. Large system potential.
The 2024 LiDAR survey revealed more than double the historic mines and workings previously known — the framework for systematic district-scale exploration along an interpreted ~10 km vent system.
Upgraded resource — 75% Indicated. Main east-west structure extends 1 km west for drill testing.
Discovery drill hole April 2025 — 11.4 m @ 8.61 g/t Au & 57.6 g/t Ag. More gold-rich, high in the system.
Maiden drilling completed Feb 2026 with high grade intersected across a widespread Au-Ag system.
Rock chips to 10.4 g/t Au and 422 g/t Ag — continued mapping and sampling.
Silver-rich — maiden drilling complete, follow-up drilling in progress. Sampling up to 3,300 g/t Ag.
Not yet drill tested, historical workings across 2 levels with channel sample grades up to 0.70 m @ 57.8 g/t Au, and 2,120 g/t Ag.
1,200 metres elevational change over 9 km.
Two trends of historic workings across the district now defined by mapping, channel sampling and drilling
The Mineral Resource.
Target 1 Only
The June 2026 Target 1 resource upgrade — built on 60,000 m of drilling — is constrained by underground mine stope modelling and diluted, with 95% of the undiluted, high-grade core of the block model captured by the mining shape constraints. A mining-realistic foundation, ready to advance toward development.
| Area | Class | Tonnes (kt) | Au (g/t) | Ag (g/t) | AuEq (g/t) | Au (koz) | Ag (koz) | AuEq (koz) |
|---|---|---|---|---|---|---|---|---|
| El Refugio | Ind | 2,557 | 3.38 | 73.7 | 4.44 | 278 | 6,061 | 365 |
| Inf | 1,217 | 2.17 | 82.1 | 3.35 | 85 | 3,214 | 131 | |
| La Soledad | Ind | 834 | 2.43 | 90.2 | 3.72 | 65 | 2,418 | 100 |
| Inf | 219 | 2.54 | 26.1 | 2.92 | 18 | 184 | 21 | |
| Total | Ind | 3,391 | 3.15 | 77.8 | 4.26 | 343 | 8,479 | 464 |
| Inf | 1,436 | 2.23 | 73.6 | 3.28 | 103 | 3,398 | 151 |
Notes to the Mineral Resource Estimate
- Numbers may not add due to rounding.
- All dollar values in United States Dollars (USD) unless otherwise noted.
- Reported at a cut-off grade of 1.5 g/t AuEq.
- Mineral Resources were prepared in accordance with the CIM Definition Standards (2014) and Estimation of Mineral Resource and Mineral Reserve Best Practice guidelines (2019), which are materially identical to the JORC Code (2012).
- The preparation of the mineral resource estimate was supervised by John Sims, President of Sims Resources LLC, an independent contractor and Qualified Person (QP) and Competent Person (CP), as a Certified Professional Geologist (CPG) member with the American Institute of Professional Geologists (AIPG). The Qualified Person has verified the data disclosed in this section, including sampling, analytical and test data underlying the information and opinions contained herein.
- The effective date of the estimate is 29 June 2026.
- Inferred Mineral Resources have been estimated from geological evidence and drill core sampling and have a lower level of confidence than Measured and Indicated Mineral Resources due to the distance between sampled drill holes. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
- Constrained and diluted Mineral Resources for Copalquin Target 1 are based on underlying metal prices of $3,300/oz Au and $50/oz Ag, unless otherwise noted.
- AuEq g/t = Au g/t + (Ag g/t × (Au price / Ag price) × (Ag recovery / Au recovery)), and is calculated using the underlying metals prices, along with metallurgical recoveries of 96% Au and 91% Ag from metallurgical test work on Target 1 composite samples.
- Underground Resource estimates are based on economically constrained mining shapes generated using Datamine’s Mineable Shape Optimizer (MSO) algorithm and the following optimization parameters: diluted to a minimum 2 m shape width with a 92% mining recovery; metallurgical recoveries of 96% for Au and 91% for Ag, from metallurgical test work on Target 1 composite samples; Long Hole Open Stope mining with a total Mining + Processing + General and Administration (G&A) cost of $97.00 per tonne of material processed.
- Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
Source: ASX / TSXV announcement 30 June 2026, “Mithril Derisks Target 1 with 75% Indicated Resource”. Refer to the Company's ASX and SEDAR+ disclosures for the full report.
A single deposit area, built for development.
High confidence across El Refugio and La Soledad — grade shells, block classification and mining shapes over one contiguous deposit area, positioned for efficient underground mine development.
A robust geologic model points to considerable growth upside across the Target 1 area — with the main east-west structure extending a further 1 km west, roads and pads already built for drill testing.
No economic study — Preliminary Economic Assessment, Pre-Feasibility Study or Feasibility Study — has been completed for the Copalquin project. The mining shapes, dilution and recovery parameters shown are conceptual inputs used to constrain the Mineral Resource estimate; they do not constitute a mine plan and do not demonstrate economic viability. Mineral Resources are not Mineral Reserves.
Globally significant intercepts.
Drilling at Target 1 has included top-20 global gold intercepts — CDH-077 ranked the 7th-best gold drill intercept reported globally in 2021, CDH-159 the 16th in 2024.
| Hole ID | Interval (m) | Gold (g/t) | Silver (g/t) | AuEq (g/t) |
|---|---|---|---|---|
| CDH-159✦ top-20 global | 33.0 | 31.8 | 274 | 35.7 |
| CDH-077✦ top-20 global | 8.26 | 80.30 | 705 | 90.4 |
| CDH-072 | 6.80 | 74.0 | 840 | 86.1 |
| CDH-050 | 4.17 | 62.0 | 444 | 68.5 |
| CDH-001 | 3.00 | 34.7 | 3,129 | 79.4 |
| MTH-LS25-11 | 4.95 | 20.5 | 1,833 | 46.7 |
| MTH-LS25-16 | 3.35 | 26.5 | 1,046 | 35.5 |
| CDH-094 | 18.67 | 9.64 | 278 | 13.6 |
| CDH-150 | 17.95 | 5.16 | 78.0 | 6.27 |
| RE26-009 | 9.65 | 7.00 | 370 | 12.3 |
| MTH-RE25-45 | 8.03 | 7.19 | 260 | 10.9 |
| CDH-140 | 5.83 | 15.73 | 474 | 22.5 |
Selected downhole intercepts from Target 1 area drilling; widths may not represent true thickness. AuEq g/t = Au g/t + (Ag g/t × (Au price ÷ Ag price) × (Ag recovery ÷ Au recovery)), and is calculated using the underlying metals prices of USD $3,300/oz Au and $50/oz Ag, along with metallurgical recoveries of 96% Au and 91% Ag from metallurgical test work on Target 1 composite samples, which has been rounded to a Au:Ag value of 70:1. Full assay results, collar coordinates, down-hole surveys, and JORC Table 1 disclosures for each drill program are reported in the Company's ASX announcements dated with each respective program. Refer to the Company's ASX and SEDAR+ filings for complete details.
Built for efficient exploration.
Excellent access and infrastructure with proximity to roads, power and key regional hubs — in the world's #1 silver-producing country.