Mining Energy

The Extraction Engine: Mining and the Mechanics of Global Growth

Energy    Commodities    Natural Gas    Brent Crude    LNG    WTI Crude    Brent Crude    Natural Gas In Asia    Natural Gas In Russia    Natural Gas In Africa    Natural Gas in the Americas    Oil & Gas    

Capitan Silver Announces 115% Increase in Inferred Gold Resources at Capitan Hill Deposit

Mithril Moves to Acquire Strategic La Dura Gold-Silver Property in Durango, Mexico

Mithril Silver and Gold has executed a purchase option agreement to acquire the La Dura gold-silver property, advancing its strategic consolidation of assets in the prolific Durango State, Mexico.

The 2,052-hectare property consists of five contiguous concessions and is located adjacent to Mithril's existing Copalquin project.

Its position, less than 5 kilometers from the town of El Durazno and under 20 kilometers from the Copalquin district, offers excellent logistical access.

La Dura hosts multiple historic mines and workings, most notably the four-level La Dura gold-silver mine. The site includes a historical 60-tonne-per-day processing facility and was last operated in 2013. It is supported by an extensive historic database, with mining records and sampling data compiled from the 1990s through 2018, providing a substantial foundation for future exploration and development.

Mithril Silver and Gold has secured an exclusive four-year option to acquire a 100% interest in the La Dura concessions for a fixed payment of $4 million (A$6.03 million).

To maintain the option, the company must keep the mining concessions in good standing and meet specific exploration commitments:
Conduct LiDAR and aerial magnetic surveys within the first year, with LiDAR scheduled for this month and the magnetic survey for early 2026.
Spend a minimum of $200,000 on exploration in the second year.

The company confirms there are no further exploration expenditure requirements beyond these obligations.

Strategically, La Dura expands Mithril's land position near its Copalquin District property, where drilling is currently underway at Targets 1 and 5, with drilling at Target 3 scheduled to commence in January 2026.

Mithril Expands Gold-Silver Prospectivity in Mexico
“The acquisition of the historic La Dura mine represents a strategic expansion of our portfolio in Durango. This property, a notable past producer, lies within the same high-prospectivity geologic locality as our flagship Copalquin district and is situated just five kilometers from our established support office.

Our immediate plan is to leverage modern exploration techniques, beginning with LiDAR and aerial magnetic surveys, to systematically assess the 20 km² concession area. This data will guide detailed mapping and sampling, paving the way for future drill testing.

We are not starting from scratch. Our management team completed exploration work here in 2017-18, giving us a strong foundational knowledge. More importantly, the same proven technical team that is driving discoveries at Copalquin is now positioned to unlock the significant potential at La Dura.”

Context and Background of the Announcement
The statement is based on the context of Mithril's strategic move to consolidate its position in a prolific Mexican mining district.
The Transaction: Mithril secured an exclusive, low-commitment option to acquire 100% of the La Dura property over four years for a total of US$4 million. The property consists of five contiguous concessions totaling 2,052 hectares.

Property Potential: La Dura is a brownfields site with a history of small-scale production, hosting a four-level mine and a 60-tonne-per-day processing facility last used in 2013. It features a gold-silver vein system with at least 650 meters of strike length on the surface, and mineralization has been historically mined to a depth of about 140 meters. Recent, unrelated sampling by another company in the area has reported gold-silver mineralization extending along a 500-meter horizon.

Exploration Timeline: Mithril’s near-term work is methodical and budget-conscious. Following the LiDAR and magnetic surveys, the company has committed to a minimum exploration spend of US$200,000 in the second year. The focus is on target generation, with drilling considered a possibility for later in 2026 or 2027.

Leadership Expertise: John Skeet’s confidence stems from over 35 years of experience, including 20 years on the ground in Mexico where he has led successful mine developments and corporate transactions. This deep regional expertise underpins the company's strategy in the Copalquin district and now at La Dura.

Key Strategic Rationale
The acquisition is not about rushing into production but about smart, low-cost portfolio growth.
District-Scale Consolidation: La Dura is located less than 20 km from Mithril’s flagship Copalquin project. Acquiring it allows for shared logistics, unified geological modeling, and creates a larger, contiguous land package in a proven precious metals belt.

Risk-Managed Approach: The option agreement requires minimal upfront cash and contains no mandatory drilling commitments, allowing Mithril to advance the property without diverting significant resources from its primary focus at Copalquin.

A Pipeline Asset: La Dura is viewed as a potential future source of mill feed or a standalone project. However, analysts caution that while the historic infrastructure is useful for context, any restart would require substantial capital and a modern, compliant resource estimate.

Mining Energy