Mithril Silver & Gold’s flagship project is the Copalquin Project, a district scale gold silver epithermal system in Durango State, Mexico. The conversation covers a stock price decline, a violent incident involving company personnel, the newly updated Target 1 mineral resource, ongoing multi target drilling, cash position, and near term catalysts.

TL;DR

The stock is down roughly 50 percent from earlier this year, driven by a large shareholder’s exit selling, weaker silver prices, and negative sentiment toward Mexico following an unrelated violent incident at another company plus a gunfire incident involving John Skeet. Despite that, the company just delivered an updated Target 1 resource of about 615,000 ounces gold equivalent, with 75 percent now indicated, built on more than 60,000 metres of drilling. The company reports roughly $10.8 million in cash as of March 31, plus incoming Mexican VAT refunds, and says it is fully funded for its 2026 drill program without needing to raise money this year. Management says a preliminary economic assessment (PEA) on Target 1 could be released before year end, and assay results from new exploration drilling are expected in five to six weeks from the date of the interview.

What have they done for shareholders lately?

The company released an updated mineral resource estimate for Target 1 days before this interview, moving from an earlier, less constrained model to one that is diluted and constrained within underground mining shapes, showing 615,000 ounces gold equivalent with 75 percent indicated. Skeet said the extra drilling and time were needed because the team identified a post mineral rock unit (a dyke) that had shifted parts of the vein system, and they wanted to properly model that before reporting. The company also completed a LiDAR survey and an aerial magnetic survey over its Copalquin and La Dura concessions, has been drilling at Target 3 and Target 5, and has started drilling on new deep exploration targets aimed at finding the source of the district’s mineralization.

How much money do they have and what are they spending it on?

As of March 31, the company reported cash of $10.8 million, plus an additional $1.3 million received afterward from a Mexican government VAT refund. New numbers covering the quarter ending June 30 are expected before the end of July. Monthly cash burn with two drill rigs running was described as about $1.2 million, covering all corporate overhead and project costs in Mexico. Skeet said the company does not need to raise money to complete its currently funded 2026 program, which includes 12,000 more metres in the second half of the year, split roughly 4,000 metres near known targets and 8,000 metres testing new, deeper exploration targets. Fixed costs such as mining concession taxes were described as roughly $90,000 every six months across its two properties.

Upcoming catalysts

Technical and operational: assay results from the newly started deep exploration drilling are expected in about five to six weeks from the interview date; a technical report supporting the updated Target 1 resource is due within 45 days; initial drilling at the La Dura property (roughly 1,000 to 1,200 metres) is targeted before year end, pending permitting; a first resource estimate for the Target 5 area is possible by late this year or early next year.

Corporate: management said a PEA for Target 1 could be released before the end of the year, though the fastest realistic path to production, if permitting and financing go smoothly, was estimated at around three years.

Risks

The main risks are continued negative sentiment toward Mexico following security related news in the region (including the gunfire incident affecting Skeet’s own travel, and unrelated tragic news at a nearby company’s project), general weakness in gold and silver prices and market sentiment, and the risk that the newly started deep exploration drilling does not deliver the results needed to support the district scale story management is presenting. Skeet also noted uncertainty in assay lab turnaround times during the busy North American drilling season, and acknowledged that if drill results disappoint, the company may need to reconsider financing options at a weaker share price.

Mithril Silver & Gold CEO Interview

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