Mithril Silver and Gold Limited (Mithril) (MSG) reported a major advancement for its primary Copalquin project in Durango State, Mexico, with a significant upgrade to its Mineral Resource Estimate (MRE). The new estimate, constrained within preliminary underground mining shapes to better reflect practical extraction, totals 464,000 ounces of gold equivalent (AuEq) in the Indicated category and 151,000 ounces in the Inferred category. This represents a 196% increase in higher-confidence Indicated gold and silver resources compared to the previous estimate, with 75% of the total gold and silver now classified as Indicated. Shares of the company rose 15.79% on July 31, 2026, to close at $0.22.

The updated MRE integrates results from 204 diamond drill holes, including 127 holes completed since the last resource assessment. By constraining the resource within underground mining shapes and incorporating expected dilution, the company has shifted the project from a geological inventory to a more robust foundation for future economic and engineering studies. This de-risking milestone is central to the company’s current operational phase, as it works to delineate the extent of the epithermal system.

"The June quarter marked a significant step in the systematic de-risking of Target 1 and the broader expansion of the large Copalquin epithermal silver-gold system." — John Skeet, Managing Director and CEO

Beyond the resource upgrade, Mithril continues its active exploration efforts across the broader district. Drilling at Target 3 has confirmed high-grade mineralization, marking the first successful drilling in that sector since 2020. Simultaneously, the company is refining its structural model at Target 1 and exploring new areas like La Maquina, where recent drilling intercepted high-grade silver and gold. The company remains well-capitalized with a cash balance of A$7.3 million as of June 30, 2026, and reports that it remains debt-free, aided by ongoing value-added tax refunds from its Mexican operations.

"Two drills are active on site to execute the remaining fully funded 12,000 metres of drilling for the 2026 program." — John Skeet, Managing Director and CEO

Mithril is maintaining a dual-focus strategy, advancing the core resource at Copalquin while simultaneously initiating preliminary drill planning and permitting for the recently acquired La Dura property. Looking ahead to the September 2026 quarter, the company plans a comprehensive exploration schedule. This includes targeted drilling to the west and northwest of the current Target 1 resource area, as well as follow-up programs along strike from historical mine workings.

The upcoming quarterly program also includes deep, structural targeting drill holes across the district intended to identify further potential conduits for the silver-gold system. The company aims to finalize its economic assessment and de-risking work for the Target 1 area during this period, while also moving forward with initial planning at La Dura. By balancing established resource expansion with proactive district-scale testing, the company intends to maximize the long-term potential of its Mexican portfolio. The ongoing drill campaign remains fully funded to reach the 12,000-metre completion target, sustaining the pace of work that culminated in this week’s updated resource figures.

Read the full announcement: Mithril Silver And Gold June 2026 Quarterly Report Upgraded T1 MRE And District Expansion Drill Program