Mithril Resources Limited: New Zinc Target at Billy Hills

Adelaide - Mithril Resources Ltd. (ASX:MTH) is pleased to advise that a review of historic drilling data has identified a major new target zone at its 100% - owned Billy Hills Zinc Project which adjoins the Pillara Zinc Mine in the West Kimberley region of Western Australia (see Figure 1 in link below).

- New target zone identified which includes significant historic drill intersections and gossan along strike from drill intercepts of more than 10% zinc + lead at the Pillara West Prospect

- Data compilation and target generation continuing ahead of field work commencing next year

The target zone includes significant historic drill intersections and a 1.2-kilometre-long gossan (Snake Bore Prospect), directly along strike from previous drill intercepts of more than 10% zinc + lead over multiple metres at the Pillara West Prospect, adjacent to Mithril's tenement holding (see Figures 2 and 3 in link below).

The zone also coincides with a poorly drill tested linear gravity feature that defines the western edge of the rock sequence that hosts the Pillara deposit (pre-mine resource of 18.05Mt @ 7.7% zinc and 2.4% lead - see ASX Announcement dated 21 August 2017) and can be seen in geophysical data for over 12 kilometres within Mithril's tenements.

Management Comment

Mithril's Managing Director Mr David Hutton said: "With multiple drill intercepts that require follow-up directly along strike from the recent Pillara West discovery, the new target zone reinforces the prospectivity of Billy Hills Project".

"Mithril looks forward to getting on the ground mid next year when we anticipate that the tenements will be granted".

"In the meantime, our immediate task is to complete the data compilation and target generation work in order to identify further areas for follow-up which is likely to comprise electrical geophysics and drilling".

Pillara West

The Pillara West prospect is located on the Pillara Mine Lease (M04/118) 300 - 500 metres west of existing underground workings at Pillara and 300 metres from Mithril's tenement boundary.

The prospect was discovered in 2006 by Lennard Shelf Pty Ltd, the owners of the mine who conducted multiple drilling programs at Pillara West right up to the mine's closure in 2008.

Mineralisation at Pillara West occurs within a 500-metre long shallow-dipping zone of mineralised (zinc-leadmarcasite- calcite) rubble limestone breccias and veining, drilling of which has returned multiple intercepts including;

- 15.8m @ 6.80% zinc, 3.05% lead, 30g/t silver from 399.8 metres in PD785 including 3.3m @ 11.10% zinc, 5.30% lead, 66g/t silver,

- 19.1m @ 7.60% zinc, 2.10% lead, 17g/t silver from 385.4 metres in PDD796 including 11.9m @ 10.40% zinc, 3.20% lead, 25g/t silver, and

- 11.0m @ 8.20% zinc, 8.80% lead, 26g/t silver from 347.0 metres in PD802 including 4.0m @ 11.80% zinc, 17.20% lead, 45g/t silver.

Step-out diamond drilling west of the initial discovery intersected further broad zones of mineralisation on ground now covered by Mithril's tenement holdings including;

- 14.90m @ 0.90% zinc, 0.14% lead, 2g/t silver from 315.20 metres in PD817 including 0.6m @ 9.20% zinc, 1.75% lead, 4g/t silver,

- 16.00m @ 2.12% zinc, 0.03% lead, 3g/t silver from 341.10 metres in PD817 including 1.2m @ 8.79% zinc, 0.07% lead, 4g/t silver,

- 32.20m @ 1.89% zinc, 0.33% lead, 3g/t silver from 524.00 metres in PD817 including 7.30m @ 3.33% zinc, 0.55% lead, 3g/t silver,

- 23.80m @ 0.79% zinc, 0.02% lead, 2g/t silver from 500.70 metres in PD830 including 5.8m @ 1.30% zinc, 0.13% lead, 3g/t silver, and

- 20.50m @ 1.07% zinc, 0.03% lead, 1g/t silver from 325.70 metres in PD831 including 3.0m @ 3.12% zinc, 0.09% lead, 1g/t silver.

Pillara West remains open in all directions and lies within the gravity feature which extends to the Snake Bore prospect 5 kilometres to the southwest.

Snake Bore

Discovered by Amax Exploration (Australia) in 1972, the Snake Bore prospect comprises a 1.2-kilometre-long gossanous zone, drilling of which has returned broad zones of anomalous zinc mineralisation; 24m @ 0.33% zinc, 0.06% lead from 12 metres in SP3, 29m @ 0.45% zinc, 0.19% lead from 11 metres in SP4, and 9m @ 0.47% zinc, 0.07% lead from 6 metres in SP4a.

When the historic drill results are interpreted in the context of the more recent Pillara West discovery (where mineralisation extends for hundreds of metres down dip from near surface intercepts), Snake Bore is a high priority for follow-up as the prospect does not appear to have been drilled at depth.

Next Steps

Data compilation and target generation work for the project is continuing ahead of commencing field work mid next year once the tenements are granted.

Mithril looks forward to updating the market as further results come to hand.

Historic information and drill intercepts referred to in this Report have been sourced primarily from the following open file Annual Technical Reports available from the WA Department of Minerals and Energy:

- Progress Report on the Lennard Shelf Lead Zinc Project, West Kimberley Goldfield, WA. Amax Exploration (Australia) Inc. March 1973. WAMEX Report No. A3915

- Annual Report Group Report C27/2006 Lennard Shelf Project for the period 01 January 2006 to 31 December 2006. February 2007. Lennard Shelf Pty Ltd. WAMEX Report No. A74569

- Annual Report Group Report C27/2006 Lennard Shelf Project for the period 01 January 2007 to 31 December 2007. February 2008. Lennard Shelf Pty Ltd. WAMEX Report No. A77687

- Annual Report Group Report C27/2006 Lennard Shelf Project for the period 01 January 2008 to 31 December 2008. February 2009. Lennard Shelf Pty Ltd. WAMEX Report No. A80938

To view tables and figures, please visit:
http://abnnewswire.net/lnk/D5W0L9GK

About Mithril Resources Limited:

Mithril Resources Ltd. (ASX:MTH) is an Australian resources company whose objective is the creation of shareholder wealth through the discovery and development of mineral deposits.

The Company is actively exploring throughout the Western Australian Goldfields and Kimberley Districts for economic gold, copper, nickel and zinc.

The Company is also exploring South Australia’s far western Coompana Province for magmatic nickel – copper deposits with OZ Minerals Ltd..



Contact:

Mithril Resources Ltd.
David Hutton Managing Director
E: admin@mithrilresources.com.au
T: +61-8-8132-8800
F: +61-8-8132-8899
www.mithrilresources.com.au