38g/t and 64 g/t gold at new Zeppelin prospect West Kambalda

58 King William Road T: (61 8) 8378 8200 ASX Code: MTH Goodwood, South Australia, 5034 F: (61 8) 8378 8299 Issued Shares: 252,557,750 Page 1 of 6 www.mithrilresources.com.au E: [email protected] Market Capitalisation: $3.28 million

New high-grade gold target at West Kambalda

38g/t and 64g/t gold returned from recent rock chip sampling at the Zeppelin prospect

Work undertaken as part of larger program to determine exploration potential of broader area which includes the Hendrix and Floyd nickel prospects

Drilling to commence as soon as possible once statutory approvals received in June Quarter

Mithril Resources Ltd (ASX: MTH) is pleased to advise that it has identified a new high-grade gold target at the Zeppelin prospect at its West Kambalda Project, located approximately 30 kilometres west of the Kambalda Nickel Mining Centre in Western Australia. The prospect occurs within the Logan’s Find area which is subject to a Farm-in and Joint Venture Agreement with KalNorth Gold Mines Limited (ASX:KGM) whereby Mithril can to earn up to an 80% interest by completing expenditure of $2 million over 4 years (Figures 1 and 2). Zeppelin is one of four nickel – copper – PGE anomalies (also “Hendrix”, “Floyd”, and “Scott”) recently identified by Mithril at West Kambalda. As a test of the four prospects’ exploration potential, Mithril recently undertook a program of geological mapping, and Moving Loop EM (MLEM) geophysical surveying over the area (ASX Announcement dated 26 March 2014). Rock chip sampling of ferruginous vein quartz material within a series of shallow historic workings at Zeppelin returned high-grade gold values of 37.82g/t and 64.17g/t (Samples R08538 and R08539 respectively – Figure 3). The workings are present as small pits over a strike length of 50 metres. One historic drill hole was located near the southern end of the workings however the Company has been unable to find any record of the drilling in previous exploration reports. Geological mapping and interpretation of regional magnetic data suggests the prospect lies on a sheared ultramafic contact, south along strike from the 4 kilometre long Logan’s Find gold anomaly (defined as >50ppb gold with a maximum value of 219ppb gold). Recent rock chip sampling at Logan’s Find by the Company has returned results up to 11.1g/t gold (ASX Announcement dated 11 December2013). Mithril will drill test the Zeppelin prospect along with the Hendrix and Floyd nickel targets as soon as possible once all statutory approvals have been received early in the June 2014 Quarter.

ASX Release – 28 March 2014

http://www.mithrilresources.com.au/

mailto:[email protected]


Figure 1: West Kambalda Location Plan Figure 2: Logans Find Prospect Location Plan

Table 1: Rock chip sampling details and results

Sample_ID Prospect Easting Northing Au_g/t AuR1_g/t

R08533 Zeppelin 350,572 6,527,849 0.010

R08534 Zeppelin 350,551 6,527,868 0.082 0.144

R08535 Zeppelin 350,551 6,527,868 0.004

R08536 Zeppelin 350,542 6,527,871 0.010

R08537 Zeppelin 350,489 6,527,847 0.010

R08538 Zeppelin 350,436 6,527,859 37.820 38.500

R08539 Zeppelin 350,422 6,527,868 64.170 >100

R08540 Zeppelin 350,430 6,527,872 0.139 0.126

R08541 Zeppelin 350,410 6,527,887 3.000 3.140

R08542 Zeppelin 350,439 6,527,967 0.010

R08543 Zeppelin 350,429 6,527,961 0.006

R08544 Zeppelin 350,394 6,527,939 0.002

R08545 Zeppelin 350,397 6,528,003 0.008

R08546 Zeppelin 350,430 6,527,843 1.800

R08547 Zeppelin 350,462 6,527,826 0.040

R08548 Zeppelin 350,428 6,527,827 0.050

R08549 Zeppelin 350,475 6,527,807 0.005

R08550 Zeppelin 350,471 6,527,820 0.034

R08551 Zeppelin 350,503 6,527,809 0.004

R08552 Zeppelin 350,547 6,527,785 0.004

R08553 Zeppelin 350,578 6,527,801 0.006

R08554 Zeppelin 350,587 6,527,791 0.032

R08555 Zeppelin 350,600 6,527,712 0.005




Figure 3: Zeppelin prospect plan showing rockchip sampling results, on background magnetic image (RTP tilt E shade lin)




JORC TABLE 1 Section 1: Sampling Techniques and Data

Criteria JORC Code explanation Commentary

Sampling techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

Rock chip samples were collected at various locations over the Zeppelin Prospect (West Kambalda Project). Samples of around 1 – 3kg were collected of either outcrop, subcrop or float/lag material.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Each rock chip location (easting and northing) was collected by a handheld GPS. Lithology type, a brief sample description and additional comments as necessary, were recorded at every sample location. All sampling protocols remained constant throughout the program.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

Rock chip samples were collected from either outcrop or subcrop with the use of a geological hammer to break the rock, or as float/lag pieces lying on the ground.

1 – 3kg samples were placed inside calico sample bags for transportation to the laboratory and geochemical analysis. In the laboratory, samples were crushed (~10mm) and pulverised to produce a representative 25g sub-sample for analysis using fire assay with ICP-MS finish for Au, Pt, and Pd (FA25MS3 – Lab Code) and four acid digest with ICP-OES finish for Ag, Al, As, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cu, Fe, K, La, Li, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sc, Sn, Sr, Te, Ti, Tl, V, W, and Zn (MA4010 – Lab Code).

Drilling techniques

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

Not applicable as no drilling techniques are utilised during rock chip sampling.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.


Measures taken to maximise sample recovery and ensure representative nature of the samples.


Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.


Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Rock chip samples have been described geologically but not to a level of detail suitable for Mineral Resource estimation, mining and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography

Logging of rock chip samples is of a qualitative nature.

Samples are logged for lithology and sometimes logged for colour, texture, weathering, minerals and alteration. An overall sample description and general comment on location is also included.

The total length and percentage of the relevant intersections logged.

Logging of rock chip samples was restricted to the rock sample collected for analysis.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.


If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

Samples were collected from outcrop, subcrop or float and all samples were dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

The sample preparation of the rock chip samples follows industry best practice, involving oven drying (110°C) where necessary, crushing and pulverising (~90% less than 75μm).

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

The laboratory completed repeats analysis on samples returning >100ppb Au. Routine (around 1 in 30) repeats and regular blanks





and standards analysed throughout.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

No field duplicates were taken. All samples collected were ~1 – 3kg, and entire sample pulverized.

Whether sample sizes are appropriate to the grain size of the material being sampled

Sample sizes are considered appropriate for the exploration method and produce results to indicate degree and extent of mineralisation.

JORC TABLE 1 Section 2: Reporting of Exploration Results


Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The rock chip sampling was completed over P15/5236.

P15/5236 is owned by KalNorth Gold Mines and is subject to the Spargoville JV in which Mithril is earning up to an 80 % interest by completing expenditure of $2M over 4 years.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

There are no existing impediments to the Spargoville JV tenements.

Exploration done by other parties Acknowledgment and appraisal of exploration by other

parties.

The area has been primarily explored for gold with a range of activities undertaken, including geological mapping, surface geochemical sampling (auger, soil, rock chip) and reconnaissance drilling (diamond, RC and RAB). Nickel – focussed activities including reconnaissance drilling was last undertaken by INCO in 1970.

Geology

Deposit type, geological setting and style of mineralisation.

Geology over the area consists of Archaen mafic/ultramafic units, felsic volcanics and sedimentary lithologies. The tenements are prospective for vein and shear hosted gold deposits and ultramafic – hosted nickel sulphide deposits.

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

easting and northing of the drill hole collar, elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar, dip and azimuth of the hole, down hole length and interception depth, hole length.

The results of the rock chip sampling has been displayed in conjunction with historic drill hole locations in Figure 3 of this Report.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

No information has been excluded.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

No weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades have been applied when reporting Exploration Results.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

Not applicable for the sampling method used.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

No metal equivalents reported.





Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

The rock chip sampling data in this Report provides geochemical information on individual samples only and cannot be used to demonstrate a relationship between mineralisation widths and intercept lengths.

Information relating to the geometry of any mineralisation is also unattainable based on these results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

Not applicable – see previous comment

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).

Not applicable – see previous comment. Also the results do not relate to drilling.

Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

See Figure 3 of this Report.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

All results have been reported.

ENDS

For Further Information Contact:

Mithril Resources Ltd David Hutton, Managing Director [email protected] 58 King William Road Goodwood, South Australia 5034 ABN: 30 099 883 922 T: (61 8) 8378 8200 F: (61 8) 8378 8299 www.mithrilresources.com.au

Competent Persons Statement:

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr David Hutton, who is a Competent Person, and a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Hutton is Managing Director and a full-time employee of Mithril Resources Ltd.

Mr Hutton has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

Mr Hutton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About Mithril Resources Ltd:

Mithril Resources Ltd is an Australian exploration company focused on the discovery and development of base metal deposits primarily copper. Mithril is a frontier explorer with a small but highly experienced team based in Adelaide. Combining advanced technology with a proven field‐based approach ensures the bulk of the company’s expenses go directly into the ground.





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38g/t and 64 g/t gold at new Zeppelin prospect West Kambalda