Mithril Resources Limited (ASX: MTH) has executed a binding Farm In Heads of Agreement with CBH Resources Limited whereby the latter can earn up to an 80% interest in Mithril’s Billy Hills Zinc Project (EL’s 04/2503, 04/2497, and 80/5191) by completing expenditure of A$4 million over five years.
CBH is the owner and operator of the Rasp Zinc Lead Silver Mine at Broken Hill, NSW and is a wholly owned subsidiary of Toho Zinc Co. Ltd, a Japanese company listed on the Tokyo Stock Exchange specialising in nonferrous metals refining.
The Billy Hills Zinc Project is located 25 km east of Fitzroy Crossing, WA and contains numerous high-grade zinc targets including the Firetail Prospect where rock chip samples previously collected by Mithril along a 300 metre – long subcropping zone of siliceous gossan and weathered colloform-banded sulphides, returned assay values up to 30.3% zinc, 127g/t silver and 3.0% lead.
Mithril’s Managing Director David Hutton said CBH is a high-quality partner to help develop Billy Hills.
I am delighted to have a company of CBH’s calibre partner with Mithril to explore the Billy Hills Project. Introducing a farm in partner for Billy Hills is consistent with our strategy of introducing exploration partners to all of our Australian projects to allow the Company to focus resources on its new Copalquin Gold Silver Project in Mexico,” Mr Hutton said.
The Agreement is conditional upon Mithril obtaining a Heritage Clearance to drill the Firetail Prospect and CBH obtaining FIRB approval within 90 days of executing the Agreement.
