The Billy Hills prospect “successfully” applied-for by Mithril “covers the interpreted southern extension to the key faults that control the Pillara mineralisation within an area of relatively limited historic exploration activities”.

Mithril said it will now commence a data compilation, review and target generation exercise ahead of the tenement’s grant which is expected within the next 12 months.

Pillara yielded 10.3 million tonnes of ore grading 6.9% zinc and 2.3% lead from 1997 to 2003, with a brief resumption of mining occurring in 2007/08.

Most of Mithril’s current focus is in the Murchison region of WA, where the high grade Kombi and Fenceline prospects are being targeted.

Meanwhile the cash-strapped Mithril will likely be looking to replenish its treasury in the short-to-medium term given a bank balance at the start of the current quarter of A$820,000.

Shares in Mithril were up 33% to 0.4c in afternoon trade, capitalising the company at $3.4 million.