Mithril Resources Ltd (ASX:MTH) is pleased to advise that further high-grade nickel-cobalt mineralisation and multiple zones of disseminated nickel sulphide mineralisation have been intersected in its first drilling program at the 100%-owned Kurnalpi Nickel-Cobalt Prospect (located 70 kms north east of Kalgoorlie, WA - see Figure 1 in link below).

- Drilling intersects further high-grade nickel-cobalt mineralisation at Kurnalpi;

o 12m @ 0.54% nickel, 0.10% cobalt from 34 metres in 18GDSRC004 including;

-- 4m @ 0.70% nickel, 0.16% cobalt from 36 metres

o 12m @ 0.69% nickel, 0.07% cobalt from 26 metres in 18GDSRC003 including;

-- 4m @ 0.86% nickel, 0.10% cobalt from 26 metres

- Drilling also intersects disseminated nickel sulphide mineralisation beneath the nickel-cobalt mineralisation which represents the first evidence for nickel sulphides at the prospect;

o 36m @ 0.57% nickel, 155ppb PGE's from 26 metres in 18GDSRC002

o 4m @ 0.62% nickel, 282ppb PGE's from 142 metres in 18GDSRC002

- Downhole EM geophysics to take place next week with further ground EM geophysics and drilling to commence as soon as possible thereafter

Management Comment

Mithril's Managing Director Mr David Hutton said that the Company was greatly encouraged by the initial "proof of concept" drilling results.

"The intersection of further near surface high-grade nickel-cobalt mineralisation and recognition of nickel sulphides plus 3.5 kilometres of poorly tested prospective rocks along strike to the south of the main prospect makes Kurnalpi a high priority for follow-up"

"Downhole EM geophysical surveying of the recent holes will take place next week with further ground EM geophysics and drilling to commence as soon as possible thereafter".

Discussion of Results

Four Reverse Circulation holes (18GDSRC001 to 004 - 768 metres) were drilled to validate historic nickel-cobalt drill intercepts, to test for nickel sulphides, and to determine the significance of new ground EM geophysical conductors recently identified by Mithril (see ASX Announcement dated 7 February 2018) immediately east of the main Kurnalpi Prospect (see Figure 3 in link below).

The Kurnalpi Prospect is underlain by a weathered sequence of ultramafic rocks high in magnesium oxide (MgO) that are prospective for nickel and cobalt mineralisation along with mafic and metasedimentary rocks. Nickel - cobalt mineralisation occurs towards the base of weathering as a flat lying zone developed preferentially over the ultramafic rocks (see Figure 2 in link below).

Drill holes 18GDSRC003 and 18GDSRC004 both intersected zones of significant nickel - cobalt mineralisation at the southern end of the prospect, including (see Figures 4 and 5 in link below);

- 12m @ 0.54% nickel, 0.10% cobalt from 34 metres in 18GDSRC004 including 4m @ 0.70% nickel, 0.16% cobalt from 36 metres, and

- 12m @ 0.69% nickel, 0.07% cobalt from 26 metres in 18GDSRC003 including 4m @ 0.86% nickel, 0.10% cobalt from 26 metres.

As well as intersecting the near surface nickel-cobalt zone, drill hole 18GDSRC002 also intersected a 4 - metre zone of gossanous weathered ultramafic and several narrow intervals of disseminated sulphide mineralisation within the underlying fresh ultramafic rock, assaying of which returned strongly anomalous levels of nickel, platinum + palladium ("PGE's") and copper (see Figure 6 in link below);

- 36m @ 0.57% nickel, 0.02% cobalt, 155ppb PGE's from 26m metres (nickel-cobalt zone) including 4m @ 0.47% nickel, 0.01% copper and 622ppb PGE's from 52 metres (gossan zone),

- 2m @ 0.48% nickel, 0.09% copper from 128 metres and,

- 4m @ 0.62%Ni, 282ppb PGE's from 142 metres

The association of elevated PGE's and/or copper with the nickel is characteristic of magmatic nickel sulphides and as such, the 18GDSRC002 results represents a major technical advance for the area given that nickel sulphides have not been previously recognised within Mithril's tenement.

Significantly the nickel sulphide mineralisation remains open in all directions and will be a priority (along with the nickel-cobalt) for follow-up.

A fourth hole (18GDSRC001) was drilled to test one of the new ground EM conductor east of the main ultramafic unit. The hole intersected a broad zone of disseminated and stringer iron sulphides (pyrrhotite - pyrite) within a metasediment at the modelled conductor depth from which no significant results were returned.

Next Steps

Mithril is greatly encouraged by the results which clearly justify the continuation of exploration at both the prospect and along strike to the south where the Company has over 3.5 kilometres of poorly tested prospective ultramafic rocks, including a historic drill hole (KURA50) which intersected 20m @ 0.69% nickel, 0.07% cobalt from 32 metres including 8m @ 0.96% nickel, 0.09% cobalt from 36 metres and was never followed-up (see ASX Announcement dated 7 February 2018).

Mithril plans to follow-up the latest drilling results and the historic KURA50 intercept with a program of ground EM geophysics and drilling (once necessary statutory approvals for the drilling have been received) in the June 2018 Quarter.

As a first step downhole EM surveying of the four recent holes will commence late next week.

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About Mithril Resources Limited

Mithril Resources Limited (ASX:MTH) is an Australian resources company whose objective is the creation of shareholder wealth through the discovery of mineral deposits.

The Company and its exploration partners are actively exploring throughout the Kalgoorlie, West Kimberley and Murchison Districts of Western Australia for economic nickel, copper, zinc, and vanadium deposits.

In the Kalgoorlie District, Mithril is exploring for nickel on the Kurnalpi, Lignum Dam and North Scotia Projects which lie along strike from, or adjacent to previously mined high-grade nickel at the Silver Swan and Scotia Nickel Deposits.

In the West Kimberley, Mithril is exploring for zinc on the Billy Hills Project which lies adjacent to the previously mined Pillara Zinc Deposit.

In the Murchison, Mithril is exploring for copper, nickel and zinc mineralisation on the Nanadie Well Project and for copper, silver, zinc and lead on the Bangemall Base Metal Project. Mithril's exploration partner – Monax Mining Ltd is also exploring for vanadium on the Limestone Well tenements.



Mithril Resources Ltd
David Hutton
Managing Director
T: +61-8-8132-8800
F: +61-8-8132-8899

Link: Kurnalpi drilling returns further high-grade nickel-cobalt

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Mithril Resources Limited

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Metals Materials General Mining Gold Copper Nickel Cobalt