Mithril Silver And Gold June 2026 Quarterly Report Upgraded T1 MRE And District Expansion Drill Program

Mithril Silver and Gold Limited released its June 2026 quarterly report on July 31, 2026, highlighting an upgraded Mineral Resource Estimate (MRE) for Target 1 at its Copalquin project in Mexico. The updated constrained and diluted Indicated and Inferred resources total 343 koz gold, 8.479 moz silver, and 464 koz AuEq. This upgrade represents a 196% increase in higher-confidence Indicated gold and silver compared to previous estimates, with 75% of the total resource now classified as Indicated. The resource is constrained within preliminary underground mining shapes (Longhole Open Stoping) with a 2m minimum width and 92% mining recovery, incorporating expected dilution.

Discovery cost is calculated at less than US$20 per ounce AuEq from approximately 60,000 metres of drilling across 204 holes. Drilling at Target 3 and Target 5 confirmed extensive high-grade epithermal mineralization, with notable intercepts including:

• 0.50 m @ 33.2 g/t Au / 5.9 g/t Ag at Target 3
• 0.85 m @ 6.20 g/t Au / 764 g/t Ag at Target 5

The company’s financial position remains debt-free with A$7.3M in cash as of June 30, 2026. Mithril Silver and Gold Limited received MXN11.5M (~A$940k) in Mexican VAT refunds during the quarter. Exploration expenditure for the quarter was A$3.4M. The company is fully funded to complete the remaining 12,000 metres of drilling for the 2026 program.

Planned activities for the September 2026 quarter include drilling west and northwest of Target 1, follow-up drilling at historic mine workings, deep structural targeting, economic assessment for Target 1, and permitting progress for the La Dura property.

Mithril Silver and Gold Limited (MSG) has released an upgraded Mineral Resource Estimate (MRE), a direct outcome of the 60,000m drilling program progressively announced throughout 2025 and early 2026. The market was aware of the impending resource update, characterizing this release as an incremental follow-up rather than a sudden catalyst. The shift to 75% Indicated classification and the application of mining constraints significantly de-risk the geological model and provide a more practical foundation for mine planning, marking a positive step toward pre-development.

Despite the technical progress, the stock has declined approximately 70% from its August 2025 high of $0.65 to the current $0.20. This negative price action suggests that either the resource growth was already priced in, or investors are concerned about the cash burn rate and the need for future capital. The news does not alter the company's fundamental risk profile or immediate capital requirements. It confirms the exploration strategy is working but does not provide an unexpected, market-moving event that would reverse the current sentiment or price trend.

Mithril Silver and Gold Limited is a junior exploration company focused on the Copalquin District in Durango State, Mexico. Its flagship project, Copalquin, covers approximately 70 km² and hosts a large, district-scale epithermal silver-gold system with over 100 historic underground workings.

Target 1 serves as the primary resource focus, with recent drilling expanding the strike length and confirming high-grade continuity. The district expansion strategy includes Target 3, Target 5, and the newly acquired La Dura property (2,052 ha), which features a 1.5 km structural corridor identified via LiDAR survey. The company's exploration strategy emphasizes high-grade epithermal veins, with a focus on upgrading geological confidence and testing lateral and vertical extents.