Acquisition of Advanced Copper Project in WA

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 7 www.mithrilresources.com.au E: [email protected] Market Capitalisation: $2.78 million

Mithril acquires advanced copper project in Murchison District, WA

Mithril enters into farm-in and joint venture agreement with Intermin Resources to acquire up to 75% of the Nanadie Well Copper Gold Project.

Project includes the Nanadie Well Copper Deposit (2004 JORC Code compliant Inferred Resource of 36.07Mt @ 0.42% copper – 151,506 tonnes copper metal)

The deposit has never been diamond drilled, is within 5m from surface and remains open in all directions with strong potential to extend

Multiple drill ready targets including previously untested IP geophysical anomaly 500 metres east of existing deposit

Acquisition consistent with the Company’s new “advanced assets” strategy

Field work currently underway

Mithril Resources Ltd (ASX: MTH) is pleased to advise that it has signed a Farmin and Joint Venture Letter Agreement with Intermin Resources Limited (“Intermin” - ASX: IRC) to earn up to an 75% interest in the 150km² Nanadie Well Copper Gold Project which is located 100 kilometres southeast of Meekatharra in the Murchison District of Western Australia (Figures 1 and 2). The project hosts the Nanadie Well Copper Deposit where a 2004 JORC Code Compliant Inferred Resource of 36.07Mt @ 0.42% copper (151,506 tonnes copper) was estimated by Intermin in September 2013 As such, the area is highly prospective for the discovery of new copper and gold mineralisation and contains a number of drill ready targets that offer excellent exploration upside. Refer to Intermin Resources’ ASX Announcement “Initial Resource Estimate for the Nanadie Well Cu-Au Project” dated 19 September 2013. The information pertaining to the Nanadie Well Copper Deposit Inferred Resource was prepared and first disclosed by Intermin Resources 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. The geology at Nanadie Well shares some characteristics with other Archaen Volcanic Massive Sulphide (VMS) deposits in having a polymetallic nature (i.e. copper – gold – silver – zinc). Mineralisation is associated with disseminated and veined copper sulphides (chalcopyrite) within a sequence of basalts, amphibolite, felsic volcanics and dolerite. Typically, increased copper sulphide abundance correlates with higher gold values, zones of shearing and increased silica – chlorite – sericite alteration.

ASX Release – 6 December 2013

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

mailto:[email protected]


The resource has been has been defined over 990 metres strike length and varies between 50 – 150 metres (true width), drilled to a maximum depth of 220 metres and is under a thin (<5m) veneer of soil cover. The resource remains open in all directions with auger geochemical anomalism and reconnaissance drill intercepts north and south along strike suggesting that Nanadie Well lies within a broader mineralised corridor (Figures 3, 4 and 5). An Induced Polarisation (IP) geophysical survey completed by Intermin in 2004 highlighted a chargeability anomaly coincident with and below the existing resource and a second larger anomaly on a parallel trend approximately 500 metres to the east. Significantly the eastern IP anomaly has not been drill tested (Figure 6). Diamond drilling, which has never been undertaken at Nanadie Well, will be a priority task for Mithril, in order to underpin the development of a new geological model and identification of high grade targets for the deposit and surrounding area. Mithril has commenced exploration activities at Nanadie Well with field reconnaissance, geological mapping and rock chip sampling currently underway. Mithril’s Managing Director Mr David Hutton said; “the Nanadie Well agreement is consistent with the Company’s new strategy of acquiring and exploring advanced base metal assets. Mithril has an excellent technical team and I look forward to their work quickly adding value to the Nanadie Well project for the benefit of our shareholders”.

Figures 1 (above) and 2 (right) – Nanadie Well Copper Gold Project Location Plan




Figure 3: Nanadie Well Copper Deposit drillhole location plan showing higher grade copper intercepts and location of cross sections (red lines) referred to in Figure 4. Ground magnetic image as background.

Figure 4a

Figure 4b

Figure 4c




Figure 4a: Cross section 6,944,850mN (northern end of deposit) looking north

Figure 4b: Cross section 6,944,550mN (centre of deposit) looking north

Figure 4c: Cross section 6,944,350mN (southern end of deposit) looking north

44m @ 0.30% Cu




Figure 5: Copper auger geochemistry with location of Nanadie Well copper-gold mineralisation shown

Figure 6: IP chargeability pseudo sections 6,944,000mN to 6,995,000mN with location of Nanadie Well Copper Deposit and untested eastern anomaly shown




Farmin and Joint Venture Letter Agreement Terms Under the terms of the Nanadie Well Farmin and Joint Venture Letter Agreement:

Mithril can earn an initial 60% interest in the project tenements (ELs 51/1040, 1270, 1351, 1285, and EL20/797) by completing expenditure of $2M within 4 years,

Mithril can elect to earn a further 15% interest in the project tenements by completing additional expenditure of $2M over a further 2 years (in total $4M over 6 years to earn 75%),

Minimum expenditure in Year One and before any withdrawal is $250,000,

If Mithril withdraws prior to the initial $2M expenditure it earns no interest,

Minimum annual expenditure whilst earning the initial 60% interest is $250,000 and $400,000 whilst earning the further 15% interest,

If after earning the initial 60% interest, Mithril elects not to earn a further 15%, the JV parties must contribute on a pro rata basis or dilute according to the standard industry formula,

Once Mithril has earned a further 15% (if it elects to do so), the JV parties must contribute on a pro rata basis or dilute according to the standard industry formula, and

If either party dilutes below a 15% interest they must offer their residual interest for sale to the majority partner at an agreed price or at Independent Valuation.

The agreement is conditional upon the parties entering into deeds of assignment and assumption in relation to existing third party agreements, Mithril conducting due diligence on the project tenements, and the successful renewal of EL51/1040; with all to be satisfied or waived within 90 days after the date of the Letter Agreement. About the Nanadie Well Copper Gold Deposit Also refer to Intermin Resources’ ASX Announcement “Initial Resource Estimate for the Nanadie Well Cu-Au Project” dated 19 September 2013.

Nanadie Well Inferred Resource

2004 JORC Code Classification

Tonnes (Mt)

Copper %

Gold ppm

Contained Copper metal (t)

Contained gold (ounces)

Inferred 36.07 0.42 0.064 151,506 74,233

The information pertaining to the Nanadie Well Copper Deposit Inferred Resource was prepared and first disclosed by Intermin Resources 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.




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 Results and Mineral Resources is based on information compiled by Mr David O’Farrell who is a full‐time employee of Intermin Resources Limited and a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr O’Farrell has more than five years’ experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.

Mr O’Farrell 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.





Investor Relations

Acquisition of Advanced Copper Project in WA