Mithril Derisks Target 1 with Mine Constrained and Diluted Resource Upgrade - 75% Indicated

Mithril Silver and Gold Limited announced an upgraded Mineral Resource Estimate (MRE) for Target 1 at its Copalquin Project in Mexico. The update is based on 60,568 meters of drilling across 204 holes. The resource is now constrained by preliminary underground mining shapes (Longhole Open Stoping) and includes expected mining dilution.

Indicated resources increased significantly to 3.391 Mt grading 3.15 g/t Au and 77.8 g/t Ag (343 koz Au, 8.479 Moz Ag). Inferred resources stand at 1.436 Mt grading 2.23 g/t Au and 73.6 g/t Ag. 75% of the total gold and silver is now classified as Indicated, up from previous estimates. Discovery cost is calculated at less than US$20 per ounce of gold equivalent (AuEq).

The company remains fully funded for an additional 12,000 meters of drilling in the remainder of 2026.

Mithril Silver and Gold Limited (MSG) has confirmed that its Mineral Resource Estimate (MRE) update, previously scheduled for late June 2026, remains an expected milestone rather than a surprise. Converting resources to Indicated status and constraining them for mining shapes represents a critical step toward a Preliminary Economic Assessment (PEA) or Scoping Study.

Despite the technical update, the company’s stock has declined approximately 66% from its 52-week high of $0.65 in August 2025 to $0.22. This market performance suggests investors are pricing in exploration-stage risk and awaiting a definitive economic study before assigning value.

The news validates the exploration strategy and de-risks the project for future development, though it does not immediately alter cash flows or financing requirements. Prior-period context shows a net loss of A$4.52M for the nine months ended March 31, 2026, driven by exploration expenditures and share-based compensation, which remains unchanged by this announcement.

Mithril Silver and Gold Limited (MSG) is a junior exploration company focused on the Copalquin District in Durango, Mexico. Its flagship Copalquin Project covers a 70 km² concession featuring over 100 historic underground mines and extensive surface alteration. Key exploration targets include Target 1 (El Refugio-La Soledad), Target 3, Target 5, and Target 6. The company also holds an exclusive option to acquire the adjacent La Dura property, which spans 2,052 ha and features a 1.5 km mineralization corridor identified via LiDAR. Management is led by CEO John Skeet and VP Exploration James Barr, who brings experience from SilverCrest Metals.