Mithril Silver and Gold Limited (TSXV: MSG | ASX: MTH | OTCQB: MTIRF) has released its September 2026 quarterly report, highlighting a significant new discovery at Target 4 within the Copalquin District of Durango State, Mexico. First systematic drilling of the Copalquin-Zaragoza Structure confirmed wide, high-grade silver-gold mineralisation over 550 metres of strike and 200 metres vertically. Simultaneously, the company announced the commencement of a Scoping Study and Preliminary Economic Assessment (PEA) for Target 1, underpinned by an upgraded Mineral Resource Estimate that is 75% Indicated. Investors may be watching both the pending Target 4 assays and the PEA timeline closely.

Key Points

  • Mithril Silver and Gold Limited (TSXV: MSG | ASX: MTH | OTCQB: MTIRF)
  • Target 4 drilling confirmed mineralisation over 550 metres of strike and 200 metres vertically, with best intercept of 11.70 m at 456 g/t AgEq from 22.0 m
  • Target 1 PEA commenced; cash balance A$4.1M at September 30, 2026; company remains debt free
  • Investors may be watching for pending Target 4 assay results and PEA completion targeted for early 2027

Target 4 Copalquin-Zaragoza Structure Delivers Wide, High-Grade Silver-Gold Intercepts

Three drill holes completed during the quarter at Target 4 all intersected the Copalquin-Zaragoza Structure, confirming mineralisation over 550 metres of strike and 200 metres vertically within a structure with a potential strike length of 1.5 kilometres. Hole CO26-001 returned 11.70 m at 456 g/t silver equivalent, including 0.60 m at 3,877 g/t AgEq from 31.2 m. Hole CO26-002 returned 13.95 m at 387 g/t AgEq from 88.85 m. The structure remains open approximately 400 metres to the northwest toward El Refugio and 600 metres to the southeast toward the historic San Manuel mine, with two drills continuing to expand the structural corridor.

Target 1 PEA Launched on the Strength of an Upgraded Mineral Resource Estimate

Building on the upgraded Target 1 Mineral Resource Estimate announced on June 30, 2026, Mithril has commenced a Scoping Study and PEA with completion targeted for early 2027. The MRE, constrained within preliminary underground mining shapes and incorporating expected mining dilution, totals 3,391 kt Indicated at 4.26 g/t gold equivalent and 1,436 kt Inferred at 3.28 g/t gold equivalent. The 75% Indicated classification provides a strong foundation for the economic assessment. Post-MRE drilling at La Soledad returned a notable intercept of 13.45 m at 1.55 g/t gold and 16.6 g/t silver from 30.4 m, including 0.50 m at 27.90 g/t gold from 41.2 m.

Target 5 and La Dura Property Advance Alongside Strong Corporate Finances

At Target 5, follow-up drilling at La Maquina returned 0.50 m at 12.20 g/t gold and 848 g/t silver from 168.25 m, extending the high-grade discovery 150 metres to the northwest. At the nearby La Dura property, drill planning and permitting progressed during the quarter. On the corporate side, Mithril reported a cash balance of A$4.1M at September 30, 2026, with no debt. Exploration expenditure for the quarter was A$2.58M. Mexican value added tax refunds of MXN3.5M (approximately A$270k) were received during the period. The company's fully funded 25,000 m 2026 drill program was on track for completion in late October 2026.