New gold targets at 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 of 10 www.mithrilresources.com.au E: [email protected] Market Capitalisation: $3.28 million

New Gold Targets at West Kambalda

Four key target areas have emerged following recent auger geochemical sampling

Strongest results from Logan’s Find where an existing surface gold anomaly has been extended from 1.5 kilometres to over 4 kilometres strike length – remains largely undrilled

Mithril Resources Ltd (ASX:MTH) is pleased to advise that recently completed auger geochemical sampling at its West Kambalda Project, located approximately 30 kilometres west of Kambalda (Figure 1), has successfully delineated new gold targets that further reinforce the prospectivity of the project area. 857 auger samples were collected during the recent program, which when combined with historic auger sampling, gives the Company for the first time, complete surface geochemical coverage across all of the project’s gold prospective areas identified to date. Four key target areas have emerged (Spargos Reward, Spargos South, Lady Allison, and Logan’s Find) each of which contain multiple geochemical anomalies that either highlight existing bedrock gold mineralisation, or are new anomalies that have never been drill tested (Figures 2 - 4). The strongest results are from Logan’s Find where an existing 1.5 kilometre long anomaly was extended along strike to over 4 kilometres in length. The anomaly (defined as above 50ppb gold with a maximum value of 219ppb gold) overlies a north-northwest trending belt of sheared and veined mafic - ultramafic rocks, the central part of which is characterised at the surface by a series of shallow historic shafts and workings. The new extensions to the anomaly have not been drill tested, with only 16 shallow (no holes below 50 metres) wide spaced holes drilled in 1987 and 2004 throughout the central part of the anomaly with better intercepts including:

6m @ 1.65g/t gold from 30 metres in 04HFRC005 including [email protected]/t gold from 32 metres,

3m @ 2.81g/t gold from 20 metres in HFP-4 including 1m @ 4.75g/t gold from 22 metres, and

3m @ 2.70g/t gold from 41 metres in HFP-5 including 1m @ 4.94g/t gold from 41 metres.

ASX Release – 11 December 2013

Figure 1: Project Locations

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

mailto:[email protected]


Recent rock chip sampling by the company within the central part of the anomaly has also returned results up to 11.1g/t gold (ASX Announcement dated 8 October 2013). Logan’s Find lies within the Spargoville Gold Project 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. Mithril is reviewing each of the target areas in detail to determine next steps which may include further auger sampling, geological mapping and RAB / aircore drilling in 2014.

Figure 2: West Kambalda Project Area showing location of key targets, local infrastructure and

location of Figures 3 (red box) and 4 (blue box)




Figure 3: Gold geochemical contour plan of Spargos Reward and Lady Allison areas showing drill hole locations, gold deposits and new geochemical anomalies

New gold anomalous trend with

limited previous drilling,

including SRB040 – 3m @ 10.2g/t

gold from 18 metres Spargos Reward Gold Deposit –

historic production of 30Koz gold

Lady Allison Gold Deposit – 86,800oz gold

New gold anomalous trend with no previous drilling

Spargos South target area

New gold anomaly with no previous drilling




Figure 4: Gold geochemical contour plan of Logan’s Find area showing drill hole locations, areas of sand cover and new geochemical anomalies

Areas of deep sand cover which limited the

effectiveness of the auger sampling

New gold anomaly with

no previous drilling

New gold anomaly with

no previous drilling

Logan’s Find central anomaly area

04HFRC005 - 6m @ 1.65g/t gold from

30 metres incl. 2m @ 3.08g/t gold

HFP004 - 3m @ 2.81g/t gold from 30

metres incl. 1m @ 4.75g/t gold








About the West Kambalda Project Area The project area lies within the Eastern Goldfields of Western Australia and incorporates the 100% - owned Spargos Reward Gold Project and the Spargoville Gold Project which is subject to a Farm-in and Joint Venture Agreement with KalNorth Gold Mines Limited (ASX: KGM). At Spargoville, Mithril can to earn up to an 80% interest by completing expenditure of $2 million over 4 years. Of the key targets, Spargos Reward and Spargos South lie within the Spargos Reward Gold Project, and Lady Allison and Logan’s Find lie within the Spargoville Gold Project.

Logan’s Find Historic Drilling Results This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Hole_ID Year Company Easting Northing Dip° Azi° From Width Gold g/t

HFP1 1987 CSR 349,925 6,529,301 -60 250 23 1 1.42

HFP2 1987 CSR 349,937 6,529,257 -60 250 21 2 2.42

HFP3 1987 CSR 350,035 6,529,075 -60 250 26 3 1.22

HFP4 1987 CSR 350,050 6,529,034 -60 250 20 3 2.81

including 22 1 4.75

HFP5 1987 CSR 350,069 6,529,042 -60 250 41 3 2.70

including 41 1 4.94

HFP5 1987 CSR 350,069 6,529,042 -60 250 46 1 2.16

HFP6 1987 CSR 350,067 6,528,994 -60 250 20 1 1.56

HFP7 1987 CSR 350,088 6,529,003 -60 250 40 2 0.67

HFP8 1987 CSR 350,078 6,528,952 -60 250 NSI

HFP9 1987 CSR 350,087 6,529,047 -60 250 NSI

04HFRC001 2004 Harmony 349,836 6,529,527 -60 270 34 2 0.88

04HFRC005 2004 Harmony 349,556 6,530,177 -60 270 30 6 1.65

Including 32 2 3.08

04HFRC006 2004 Harmony 349,596 6,529,927 -60 270 52 2 0.51

" " " " " " " 78 2 0.73

04HFRC007 2004 Harmony 349,636 6,529,927 -60 270 54 2 0.50

Intercepts are quoted as down hole widths and are not true widths.

Drill holes are historic and as such analytical methods are unknown.

Drill hole collar locations were determined using a handheld GPS achieving +/- 4 metre accuracy (GDA94, MGA Zone 51).

JORC Code, 2012 Edition – Table 1

Section 1: Sampling Techniques & 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.

4 prospects (Spargos Reward, Lady Allison, Logan’s Find and Larkinville) of the West Kambalda Project were sampled using auger drilling at variable grid spacing’s, including 200m x 100m (infill at Spargos Reward) and 160m x 40m (sample area extension at Lady Allison and Logan’s Find). 857 vertical, 1m deep holes were drilled in total. Samples of around 250-300g were collected from the material at the end of hole for geochemical analysis.

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

Each auger collar location (including RL) was collected by a handheld GPS. Lithology type (including whether material transported) was recorded at every sample location. All sampling protocols remained constant throughout the program and were in line with discussions had with Mithril and the contractor before program commencement.





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.

Each auger hole was drilled to 1m depth and tested with a 10% HCL acid. Sample collected from the end of each hole was sieved (<1mm fraction) and around 250-300g was collected for geochemical analysis. In the laboratory, samples were dried and pulverised (75μm) to produce a representative 10g sub-sample for analysis using Aqua Regia Digest with ICP MS finish for Au (AR10MS – Lab Code) and AR Digest with ICP-OES finish for As, Cu and Ni (AR1010 – Lab Code). During sample collection, extra information recorded included, carbonate content, lithology and comments where necessary.

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.).

Sampling was completed with the use of an Auger drill mounted on the back of a landcruiser ute. All holes were vertical and drilled to a depth of 1m.

Drill sample recovery

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

No recordings of recoveries were undertaken.

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

All samples were collected from the auger drill string or from the base of the drill hole.

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.

No relationship has been identified.

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.

Auger drilling samples are unsuitable for mineral resource estimation, mining or metallurgical studies, as the material collected only has minor geological and no geotechnical logging completed.

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

Auger samples are logged for approximate carbonate content and basic surface geology - the descriptions

being qualitative in nature.

The total length and percentage of the relevant intersections logged.

Logging of auger samples was restricted to the amount collected for analysis.

Sub-sampling techniques and sample preparation

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

No core.

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

Samples were collected from the drill unit or base of hole and samples were dry.

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

The sample preparation of the auger samples follows industry best practice, involving oven drying (110°C), 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

No field duplicates were taken. All samples collected weighed <3kg to ensure the entire sample pulverized.





duplicate/second-half sampling.

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.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

Aqua Regia digest is considered a near total digest and is appropriate for the type of exploration undertaken.

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

None used.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

The laboratory completed repeats analysis on samples returning >100ppb Au. Routine (around 1 in 30) repeats and regular blanks and standards analysed throughout. From results achieved it is determined an acceptable level of accuracy and precision has been established.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

None undertaken.

The use of twinned holes. None undertaken.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Drill locations and corresponding sample numbers were pre-determined prior to commencement of the program and given to the contractor (excel spreadsheet). Location data and sample numbers were verified at each site and were adjusted as necessary (issues on ground, i.e. trees, creeks). A complete data set (excel spreadsheet) was supplied by the contractor on completion of the program.

Discuss any adjustment to assay data None undertaken.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Auger sample locations were recorded using a handheld GPS with an expected accuracy of+/- 5m. For the nature of the program completed, this level of accuracy is considered to be suitable. No down-hole surveys were completed.

Specification of the grid system used. The coordinate system used during the program was GDA1994 MGA, Zone 51.

Quality and adequacy of topographic control. An RL value using the handheld GPS was recorded at each sample location

Data spacing and distribution

Data spacing for reporting of Exploration Results. Variable data spacing were utilised, ranging from 160 metres (northing) x 40 metres (easting) to 420 metres (northing) x 80 metres (easting).

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

No mineral resource or ore reserve estimation has been undertaken. Auger sample results are not suitable for incorporation into mineral resource or ore reserve estimations.

Whether sample compositing has been applied. No composite sampling has been applied.





Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

Auger drilling provides surface sampling only.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

No orientation based sampling bias has been identified.

Sample security

The measures taken to ensure sample security.

All samples were collected by the auger drilling contractor and stored in a secure location until completion of the program. Samples were taken to the Ausdrill Pty Ltd storage area (Kalgoorlie) and sent directly to the laboratory in Perth.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

No audits or reviews have been undertaken.

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 recent auger drilling program was completed over 10 tenements of the West Kambalda Project Area, including P15/4879 and P15/4880, owned 100% by Mithril Resources Ltd and E15/1174, M15/1806, P15/4801, P15/4802, P15/5216, P15/5236, P15/5264, P155409, P15/5537, P15/5546 and P15/5772 currently owned by KalNorth Gold Mines with Mithril earning up to an 80 % interest.

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 tenements.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Previous exploration within the areas of recent auger sampling includes, surface geochemistry (auger, soil, rock chip) and drilling (diamond, RC and RAB).

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.

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 auger sampling has been displayed in conjunction with historic auger sampling as geochemical contours in Figures 3 and 4 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

No information has been excluded.





the report, the Competent Person should clearly explain why this is the case.

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.

Not applicable for the sampling method used.

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 sampling method used defines a surficial geochemical anomaly. Information relating to the geometry of any mineralisation is 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.


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’).


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 Figures 2, 3, and 4 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 are reported.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

No other exploration data is available.

Further work The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

Detailed review of all areas of interest followed by further auger sampling, geological mapping and RAB/aircore drilling.

Diagrams clearly highlighting the areas of possible Figures displaying areas of interest over the project





extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

area have been included

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.





New gold targets at West Kambalda

Technology

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