DURANGO, MEXICO : Mithril Silver and Gold (ASX: MTH) has delivered a significant upgrade to its Mineral Resource Estimate (MRE) for Target 1 at the Copalquin Project, marking a pivotal shift in the project’s maturity. The updated estimate, released today, July 1, 2026, reveals a 196% increase in the Indicated resource category, successfully converting the vast majority of the high-grade district’s initial discovery into a bankable classification.
The Durango-based explorer confirmed that 75% of the total resource at Target 1 (comprising the El Refugio and La Soledad veins) is now classified as Indicated. The updated figures include 343,000 ounces of gold and 8.479 million ounces of silver in the Indicated category alone, providing a robust foundation for upcoming Pre-Feasibility Studies (PFS).
This upgrade follows a concentrated drilling campaign through early 2026, which focused on infill drilling and structural continuity. By de-risking the geological model, Mithril has positioned Copalquin as one of the most promising high-grade silver-gold developments in the Sierra Madre trend.
Breakdown of the 2026 MRE Upgrade
The move from Inferred to Indicated status is a critical milestone for junior explorers. It represents a transition from “reasonable prospect” to “sufficient confidence” in the geology, grade, and continuity of the ore body. For investors tracking project valuation and P/NAV metrics, this shift often triggers a re-rating of the company’s enterprise value.
| Resource Category | Gold (Au) | Silver (Ag) | Gold Equivalent (AuEq) | % of Total |
|---|---|---|---|---|
| Indicated (2026) | 343,000 oz | 8,479,000 oz | ~448,000 oz | 75% |
| Inferred (2026) | 115,000 oz | 2,800,000 oz | ~150,000 oz | 25% |
| Total Target 1 | 458,000 oz | 11,279,000 oz | ~598,000 oz | 100% |
Data sourced from Mithril Silver and Gold July 2026 MRE Update. Equivalence based on current market ratios.
The 196% surge in Indicated ounces is a direct result of the 60.6 kilometers of drilling completed across 204 holes. Over half of these holes were drilled after the maiden 2021 estimate, allowing the geological team to close gaps in the El Refugio system and identify secondary veins in the footwall and hanging wall.
Technical De-risking and Metallurgical Gains
Beyond the raw ounce count, the quality of the resource has been bolstered by updated metallurgical parameters. Previous estimates relied on preliminary bench-scale tests; however, the 2026 update incorporates comprehensive flotation and cyanidation data.
Mithril reported optimized recovery rates of 96% for gold and 91% for silver. These figures are significantly higher than the global average for similar epithermal systems, suggesting that the Copalquin ore is highly amenable to standard processing routes. The high recoveries, combined with the Indicated status, significantly lower the economic hurdle for future development.
“The conversion rate we’ve seen at Target 1 is exceptional,” noted an industry analyst following the Durango district. “Maintaining these grades while nearly tripling the Indicated tonnage suggests a very consistent mineralizing event. This is exactly what lenders look for when evaluating critical mineral and precious metal stocks.”
Durango: A Tier-1 Mining Jurisdiction
The Copalquin Project is situated in the heart of the Sierra Madre Gold-Silver Trend, a region that has produced billions of ounces of silver over the last four centuries. Durango remains a premier destination for mining capital due to its established infrastructure, skilled labor force, and clear regulatory framework.
Mithril’s success at Target 1 is set against a backdrop of a broader gold buying opportunity in 2026, as investors seek out “safe-haven” jurisdictions with high-grade, low-cost potential. With silver demand also surging due to the 2026 solar energy breakout, Copalquin’s dual-commodity exposure provides a strategic advantage.
The 2026 Exploration Roadmap
While Target 1 provides the current resource backbone, the Copalquin district spans 70 square kilometers with dozens of untested targets. Mithril is currently mid-way through a massive 45,000-meter exploration program designed to repeat the success of Target 1 across other prospects, including Target 3 and Target 5.
Up to three drill rigs are currently active on-site. The strategy is two-fold:
- Expansion: Stepping out from Target 1 to test the depth and strike limits of the El Refugio system.
- Discovery: Reconnaissance drilling on satellite targets to build a district-scale resource base.
The company’s goal is to surpass 1 million ounces of gold equivalent across the district by early 2027. Given the current success rate, that target appears increasingly conservative.
Market Implications
For mining operators and institutional investors, the “75% Indicated” figure is the most important takeaway from this update. In the current capital environment, projects that can demonstrate high geological confidence and high margins move to the front of the M&A queue.
As the project moves toward a Pre-Feasibility Study, the focus will shift from “how much is there?” to “how quickly can it be built?” With a 343 koz Au and 8.479 Moz Ag Indicated base, Mithril has answered the first question with a resounding 196% increase in certainty.
Market Snapshot: Precious Metals Resource Maturity
The following table illustrates the importance of resource classification in project derisking.
| Stage | Data Confidence | Financing Ease | Mithril Status |
|---|---|---|---|
| Inferred | Low / Speculative | Difficult / High Interest | 2021 Maiden MRE |
| Indicated | Moderate / High | Standard Debt/Equity | 2026 Upgrade (Current) |
| Measured | High / Detailed | Tier-1 Bankable | Expected 2027 |
| Proven/Probable | Economic / Reserve | Production Ready | Post-PFS/DFS |
By Charles Pitts
