Mithril Resources Limited: Half Year Report December 2017

Adelaide - The Directors of Mithril Resources Ltd. (ASX:MTH) ('Mithril') present their report together with the financial statements of the consolidated entity, being Mithril Resources Ltd. ('the Company') and its controlled entities ('the Group') for the half year ended 31 December 2017 and the Independent Auditor's Review Report thereon.

Mithril's activities for the Half Year ending 31 December 2017 (the "Period") comprised target generation on the Company's new Billy Hills Zinc Project, the identification of high-grade nickel-cobalt mineralisation in historic drilling at the Kurnalpi prospect, and reverse circulation (RC) drilling for gold and zinc mineralisation on the Murchison Project, all of which are located in Western Australia.

Exploration Overview

Billy Hills Zinc Project (Mithril 100%)

During the Period Mithril successfully applied for two Exploration Licences adjoining the Pillara Zinc Mine, 25 kms southeast of Fitzroy Crossing in the West Kimberley region of Western Australia.

At Pillara, zinc-lead mineralisation occurs within a series of fault breccia zones that cut a sequence of Devonian limestones and had a reported pre-mine resource of 18.05 million tonnes at 7.7% zinc and 2.4% lead and produced 10.3 Mt @ 6.9% zinc, 2.3% lead from June 1997 to October 2003. Mining briefly resumed during 2007 / 2008 and the mine is now on care and maintenance.

A review of historic data has identified a priority target zone at Billy Hills comprising 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 tenements.

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 and can be seen in geophysical data for over 12 kilometres within Mithril's tenements.

With tenement grant expected during the September 2018 Quarter, Billy Hills represents a high-priority exploration opportunity for Mithril.

Kurnalpi Nickel-Cobalt Prospect (Mithril 100%)

A review of historic drilling data has identified a new high-grade nickel-cobalt target at the Kurnalpi Prospect, approximately 70 kms east of Kalgoorlie, WA.

On the tenement, historic drilling (predominantly aircore) has returned strong nickel-cobalt intercepts over an area 250 metres wide by 600 metres strike within weathered ultramafic rocks including; 42m @ 1.25% nickel, 0.07% cobalt from 24 metres including 6m @ 1.78% nickel, 0.20% cobalt from 28 metres, and 19m @ 1.08% nickel, 0.07% cobalt from 33 metres including 6m @ 1.17% nickel, 0.11% cobalt from 35 metres.

Maximum values from any one single sample are 2.04% nickel, 0.33% cobalt and 0.28% copper with the presence of elevated copper potentially indicative of nickel sulphide mineralisation within the area.

An EM geophysical survey carried out at the end of the Period has identified several EM conductors and at the time of writing, a follow-up RC drilling program was underway.

Murchison Copper Gold Project (Mithril 100% - E U s 20/846 and 51/1615 and earning up to 75% on EL' s 51/1040, 51/1270, and 20/797 - "Nanadie Well JV")

RC drilling undertaken during the Period at the Kombi and Fenceline Gold Prospects (located approximately 55 kms south east of Meekatharra, WA) returned anomalous gold (e.g. 4m @ 0.95g/t gold from 28 metres, 4m @ 0.29g/t gold from 52 metres, and 4m @ 0.17g/t gold from 20 metres) within favourable structural zones at both locations. This follows an earlier drilling program undertaken by Mithril which returned 4m @ 12.76g/t gold from 20 metres and 1m @ 5.44g/t gold from 20 metres at Kombi.

RC drilling of a historic ground EM conductor at the adjacent Sandman Zinc Prospect intersected zinc anomalism within a sequence of felsic and mafic gneisses, and minor banded iron formation; 12m @ 0.26% zinc from 97 metres including 1m @ 2.36% zinc from 97 metres, and 5m @ 0.59% zinc from 118 metres.

Kombi and Sandman lie on EL's 51/1040 and 20/797 which are subject to a Farmin and Joint Venture Agreement with Intermin Resources Ltd. whereby Mithril can earn an initial 60% interest by completing expenditure of $2M by 14 April 2019 (approximately $1.3M spent to date). Mithril can earn an additional 15% by completing further expenditure of $2M over a further 2 years.

Fenceline lies on EL51/1615 which is 100% - owned by Mithril Resources.

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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.

Mithril are exploring for a range of high-value commodities (principally nickel, cobalt, copper and zinc) throughout the Meekatharra, West Kimberley and Kalgoorlie Districts of Western Australia.

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