Huckitta Project (NT)

CAZ: 20%

MTH: 80%

Mithril Resources Limited (ASX:MTH) entered a farm-in and Joint Venture agreement with Sammy Resources Pty Limited (‘Sammy’), a wholly owned subsidiary of Cazaly Resources.  Mithril may earn an 80% interest in Northern Territory Exploration Licences 25643 and 25653 which are contiguous with Mithril’s existing Huckitta Project.

The Mithril Huckitta Project covers over 5000sqkm and is located 160km ENE of Alice Springs where the Company has discovered over 16 new outcropping mineralised occurrences in the last two and a half years. The prospects consist of outcropping copper-cobalt (Cu-Co), nickel-copper (Ni-Cu) and gold (Au) mineralisation. The most significant of these prospects identified to date (to the north and outside of the Sammy JV) is the Basil Cu-Co Prospect where outcropping mineralisation has been identified over a strike length of over 10km and drill intercepts have returned grades up to 59.1m at 0.63% copper and 0.07% cobalt.

Much of the project area is covered by thin (<100m) alluvium and/or colluvium and it is suspected that further targets exist beneath the cover that would be readably detectable using geophysical methods. Mithril have completed comprehensive field programs at The Huckitta Project and also utilised helicopter borne versatile time-domain electromagnetic system (VTEM), Induced Polarisation (IP) and gravity surveys which resulted in the discovery of a number of new mineralised horizons. New targets generated from this work include the Powers, Austin, Edmund, Kevin Darling and Percy Prospects within the Sammy JV.

Geological mapping on the Sammy JV tenements identified a prospect area called Percy, where a number of exposed and weathered gabbroic bodies were found to be anomalous in nickel, copper and platinum group elements (PGE’s). Rock chip assay results from these bodies have returned up to 615ppm nickel, 572ppm copper, 1620ppm chromium and 97ppb platinum + palladium + gold which are consistent in composition with the mineralised gabbroic bodies at the Blackadder and Baldrick Prospects on the Huckitta Project. The contacts of these bodies which are the favourable position for the potential accumulation of nickel sulphide mineralisation are not exposed.

Huckitta - Iron Oxide Copper Gold ('IOCG') Target

A significant gravity anomaly was identified in a recently completed gravity survey that covers a large area of alteration consistent with an iron-oxide-copper-gold ('IOCG') mineral system on the Sammy JV area.

The alteration consists of widespread, intensely altered and brecciated granite with hematite-silica +/- fluorite veining/stockworks. The area is located on EL25643 approximately 30km south of Basil and was first identified by the Northern Territory Geological Survey ('NTGS') and described as regional scale widespread fluorite rich fluid flow associated with hematite, pyrite and copper sulphides. The NTGS also noted anomalous copper and gold values from their surface sampling (up to 1900ppm copper and 59ppb gold).

Subsequent IP geophysical surveys identified coincident anomalies associated with surface copper mineralisation and alteration at the Austin Prospect. These areas will be a focus for field activities in 2012 and will include drill testing.

Figure 1: Residual Gravity Image and IP geophysical model showing drill targets at the IOCG Austin Prospect

Figure 2: Residual Gravity Image showing prospect areas