Mithril Silver & Gold (ASX:MTH) lifts Target 1 to 75% Indicated

Indicated ounces jumped 196% to 343koz gold plus 8.48Moz silver, with 95% now sitting inside mineable stopes

Mithril Silver & Gold (ASX:MTH) has just released its July 2026 investor presentation, and the headline is the Target 1 resource upgrade at Copalquin in Mexico. Indicated resources now make up 75% of the total.

The upgraded resource stands at 464koz gold equivalent Indicated and 151koz gold equivalent Inferred. What actually matters is that Indicated ounces climbed 196% versus the maiden estimate, and 95% of the resource blocks now sit inside modelled underground mining stopes.

That is a genuine derisking event. Explorers often talk about resource growth without confidence growth. Mithril has delivered both at once, which is why the market should be treating this as a step change rather than another drill update.

The other pieces tie back to the same theme. Target 3 maiden drilling wrapped in February 2026 with widespread high-grade hits, Target 5 silver work continues, and the balance sheet holds A$10.8m in cash at 31 March plus another A$1.3m in VAT refunds and options exercise. A 12,000m fully-funded programme for H2 2026 is the near-term news engine.

Why the 75% Indicated figure is the real news, not the ounce count

Investors often anchor on total ounces. In our view, the confidence category matters far more at this stage of Copalquin’s life. Indicated resources can flow into a Preliminary Economic Assessment and eventually a feasibility study, while Inferred ounces cannot.

Mithril lifted the Indicated component to 343koz gold and 8.48Moz silver. The Inferred sits at 103koz gold and 3.34Moz silver. That mix is what lets the company start talking credibly about a development pathway rather than another two years of scout drilling.

The stope-constrained methodology is the other quiet win. By running the resource through a Mineable Shape Optimizer with 2m minimum widths and A$97 per tonne all-in costs, Mithril has effectively pre-tested whether the ounces are actually mineable.

The metallurgy and topography quietly do a lot of heavy lifting

Metallurgical recoveries of 96% for gold and 91% for silver, with no lead, zinc or other base metal complications, mean a simple flowsheet. Simple flowsheets translate directly into lower capital costs and shorter permitting timelines.

The topography at Copalquin also allows adit-level underground access, which sidesteps the shaft-sinking capex that kills many small underground projects. Combined with a five-year extension of the NOM-120 environmental permit through July 2030, the development pathway looks cleaner than most peers of this size.

Our concern sits elsewhere. The market cap is roughly A$47m against A$10.8m in cash and no economic study yet in the public domain. Investors are pricing the resource without a PEA to anchor the valuation, and that gap will need to close in the next 12 months.

Where the H2 2026 news flow actually comes from

Two rigs are turning and the 12,000m programme is fully funded. Target 1 gets a westward expansion drill along the main east-west structure for another kilometre. That is direct resource-growth drilling and the highest-confidence catalyst on the list.

Target 3 delivered widespread high-grade hits in its maiden programme, including 0.5m at 6.91g/t gold and 475g/t silver. Follow-up drilling here is discovery-style, higher risk, higher reward. Target 5 silver work and the new La Dura property round out the district story.

The skeptical read is that Copalquin has been drilled for five years and the resource, while high grade, is still relatively small globally. The bull read is that management just proved they can convert drilling into Indicated ounces at scale.

The Investors Takeaway for Mithril Silver & Gold

Mithril has moved from being a drill-result story to being a resource-and-economics story. The Target 1 upgrade is the credential that lets management start talking about scoping studies, and we would expect PEA-level work to be flagged over the next few quarters.

The near-term watch items are the west extension drill results, the follow-up Target 3 assays, and any commentary on economic study timing. Investors can read our previous coverage at stocksdownunder for background on how this drilling season started.

Get the sequence right, pair resource confidence with a credible development timeline, and the current A$47m market cap starts to look light against 464koz Indicated gold equivalent in a high metal-price environment.