Kurnalpi Nickel Project Update
Kurnalpi Nickel Project Update
Adelaide, Sep 10, 2018 AEST (ABN Newswire) - Mithril Resources Ltd (the "Company") (ASX:MTH) is pleased to advise that the recently completed work program at its 100% owned Kurnalpi Nickel Project (located 70 kms north east of Kalgoorlie, WA - see Figures 1 in link below) has identified strongly elevated copper-cobalt within a new target position and strengthened the Company's understanding of the project's nickel sulphide prospectivity.

- Drilling strengthens Company's understanding of project's nickel prospectivity with main nickel sulphide horizon requiring further drill testing

- 1.46% copper, 1.12% cobalt returned from grab sample of historic drill spoils on a newly acquired tenement at southern end of project

- Ground EM, diamond drilling planned as next step

Three Reverse Circulation holes (18GDSRC005 to 18GDSRC007 - 540 metres) were drilled as an initial test of a downhole EM conductor, plus gossan and disseminated sulphide intercepts previously obtained by Mithril at the northern end of the project (Mithril's ASX Announcement dated 30 May 2018).

Two holes drilled into the EM conductor intersected a four - metre wide zone of barren stringer sulphides (pyrrhotite / pyrite) at the modelled conductor depth (thus explaining the conductor), and a third hole (18GDSRC007) drilled beneath the gossan intersected a four - metre wide zone of weakly disseminated nickel sulphides (see Figure 2 in link below). No significant assays (i.e. > 0.25% nickel) were returned from either intercept.

Significantly the main nickel sulphide horizon was not tested with 18GDSRC007 unable to reach target depth due to unfavourable ground conditions (see Figure 2 in link below).

Drill testing of the main nickel sulphide horizon remains a priority and Mithril will need to utilise diamond drilling to confidently do this.

As shown on Figure 3 (see link below), the ultramafic rocks which host the nickel sulphide horizon continues for over 7 kilometres to the south of the drilling within Mithril's 100% - owned tenure.

Strongly anomalous levels of nickel +/- cobalt and copper in a number of wide-spaced shallow RAB / aircore drilling undertaken in the mid 1990's highlights the potential of the project's southern area, i.e.;

- 20m @ 0.69% nickel, 0.07% cobalt from 32 metres in KURA50 including 8m @ 0.96% nickel, 0.09% cobalt from 36 metres, and

- 8m @ 0.07% nickel, 0.02% cobalt, 0.15% copper from 28 metres in KURA99 (intercept at end of hole).

A grab sample of remnant drill spoils for the KURA99 intercept returned 1.46% copper and 1.12% cobalt (Sample No. KUROCK03). The mineralisation is hosted by weakly weathered sheared carbonaceous metasediments and doesn't appear to be related to ultramafic rock types. This suggests the Kurnalpi Project has potential for other mineralisation styles areas well as nickel sulphides.

The copper - cobalt target is a newly recognised exploration opportunity given that the KURA99 drill hole lies on a tenement (EL28/2760) that was only recently applied for (see Figure 3 in link below).

Management Comment

Mithril's Managing Director, Mr David Hutton said that the results continue to demonstrate the project's prospectivity and why Kurnalpi is a priority project for the Mithril.

"Nickel sulphide exploration is difficult and takes patience but importantly our work to date has demonstrated that nickel sulphides are present at Kurnalpi within favourable ultramafic rocks. The identification of a new copper cobalt target is highly encouraging and reinforces the project's potential".

"We are confident that ongoing exploration will be ultimately successful and we look forward to carrying out further ground EM geophysics and drilling as soon as possible".

JORC details for historic ("KURA" series) RAB / Aircore drilling at Kurnalpi Project has been previously detailed in Mithril's ASX Announcement entitled "Strong Targets at the Kurnalpi Nickel-Cobalt Prospect" - dated 7 February 2018.

To view tables and figures, please visit:

About Mithril Resources Limited

Mithril ResourcesMithril 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
E: admin@mithrilresources.com.au
T: +61-8-8132-8800
F: +61-8-8132-8899

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