REG - Mila Resources Plc - Bellevue-Style Mineralisation: Kathleen Valley

Mila ResourcesAnnouncement

01/03/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220301:nRSA1121Da&default-theme=true

RNS Number : 1121D  Mila Resources PLC  01 March 2022

To view the announcement with the illustrative images please use the following
link: http://www.rns-pdf.londonstockexchange.com/rns/1121D_1-2022-2-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1121D_1-2022-2-28.pdf)

 

Mila Resources Plc / Index: LSE / Epic: MILA / Sector: Natural Resources

 

1 March 2022

Mila Resources Plc

 

('Mila' or the 'Company')

 

Bellevue Style Mineralisation Intersected in Second Diamond Drill Hole at the

Coffey Deposit, Kathleen Valley

 

Mila Resources, the post-discovery gold exploration accelerator, is pleased to
announce a drilling update from the Kathleen Valley Gold Project in Western
Australia ("Kathleen Valley" or the "Project").  The objective of the drill
programme is to build on the existing JORC Inferred Resource and unlock the
full potential of the project, which is located in a region which hosts some
of the largest gold projects in Australia and which is adjacent to Bellevue
Gold's discoveries.

 

Highlights

·    Second drill hole at Kathleen Valley KVRD025 has intersected ~9.3m
wide mineralised sulphide zone from 195.68m which contains 2m of Bellevue
Style quartz-sulphide lodes from 201.5m to 203.5m

·    Mineralised zone comprises pyrrhotite, chalcopyrite, arsenopyrite and
sphalerite mineralisation

·    Zones containing between 10%-60% sulphides occur within strong quartz
veined lode zones hosted in sheared and black glassy mylonitised zone between
the basalt flows

·    Strong silica-albite-chlorite-epidote alteration occurs throughout
the sulphide hosting zone

·    This is the first time this style of quartz-sulphide mineralisation
has been confirmed at the Coffey Au-Ag-Zn Deposit

·    Drilling continues to define a wide coherent zone of mineralisation
which is open at depth and maintains a very-linear consistent zone

·    Mineralisation appears to be improving with depth and now extends
down dip for >150m

·    Third hole KVRD026 is well under way drilling beneath hole KVRD025 to
continue extending this lode at depth

 

Mila's second drill hole KVRD025, has been completed to a depth of 250m and is
the deepest hole the Company has drilled to date at the exciting and rapidly
emerging Coffey Deposit.   The hole targeted a position down dip of
successful holes KVRC019 and KVRD024, with drilling transecting the lode zone
~35m down dip to the east of these drill holes.

 

KVRD025 intersected ~9.3m of sulphide mineralisation which contains a 2m wide
zone of Bellevue Style quartz-sulphide mineralisation.  This is the first
time this style of quartz-sulphide mineralisation has been confirmed at the
Coffey Au-Ag-Zn Deposit, with mineralisation now extending down dip for
>150m.

 

Neil Hutchison, Chief Geologist of Mila Resources, commented:

 

"The nature of the system is now beginning to develop into a sheared contact
hosted system with poly-metallic mineralisation of gold-silver-zinc and now
copper mineralisation.  Intersecting this quartz-sulphide mineralisation is
the key "Bellevue Style" of mineralisation we have been waiting for.  Until
now all the mineralisation has been hosted between two basalt flows.  Now we
are seeing a black glassy mylonitised shear zone between the basalt flows
which not only hosts extensive sulphide mineralisation, but now includes the
quartz-sulphide zone which also contains chalcopyrite (copper).

 

"We haven't confirmed copper or quartz veining in any of our drilling at
Coffey before.  This association with the sulphide pyrrhotite, now makes this
system look very similar to the gold bearing lodes at the high-grade Bellevue
Project to the south.  Every hole is a new Glory Box for our geologists on
site, who are busy getting the core ready to be sent for cutting and assaying
in Kalgoorlie."

 

Mark Stephenson, Executive Chairman of Mila, commented:

 

"At this stage we are very excited with the picture that is being built with
each drill hole. We are obviously at the early stage of discovery, but we
appear to have hit some very exciting ground at Kathleen Valley and
particularly given that we have now intersected the "Bellevue" type of
mineralisation that had not been confirmed in previous holes.

 

"We look forward to keeping the market updated as we continue with the 11,000m
drill programme planned at the Coffey Deposit for this year."

 

Further Information

 

The presence of the sulphides, particularly pyrrhotite, provides a strong
geophysical response and therefore responds very well to Down Hole
Electro-magnetic surveys (DHEM).  DHEM has worked extremely well at Bellevue,
greatly assisting with their discovery success rate.  Mila will use the same
DHEM geophysical methods to test for extensions and accumulations of the
sulphide mineralisation, The drill holes have been PVC cased in preparation
for the DHEM surveying which will highlight sulphide rich zones to further
assist in targeting and locating the mineralisation at depth.  Drilling
continues and the market will be updated as the information becomes available.

 

 

 

 

Table 1: Drillhole collar details

 HoleID   Type   Depth        Dip  Azimuth  East    North    RL      Drill      Year

                                                                     Company    Drilled
 KVRD024  RC/DD  219.6        -62  240      258883  6946651  491.30  DrillCore  2022
 KVRD025  RC/DD  250.0        -68  240      258883  6946651  491.30  DrillCore  2022
 KVRD026  RC/DD  In Progress  -70  240      258897  6946660  492.70  DrillCore  2022

 

 

Bellevue Style mineralisation with white quartz hosting sulphide
mineralisation KVRD025 (201.5m-202.0m shown).

 

Core trays from KVRD025 displaying Bellevue Style Quartz-Sulphide
mineralisation and extensive alteration associated with the black glassy
mylonitised shear zone between the basalt flows (194.0m-204.8m shown).

Bleb of chalcopyrite (copper) attached to arsenopyrite and pyrrhotite sulphide
mineralisation forming stylolitic veinlets within white quartz veins.  This
is a style similar to the quartz-sulphide mineralisation which hosts the large
high-grade ore zone at the Bellevue Gold Mine 6km to the south (201.5m -205.6m
shown).

 Pyrrhotite mineralisation with the hanging wall basalt above the Bellevue
Style quartz veining (194.0m-204.80m shown).

 

In relation to the disclosure of visual mineralisation, the Company cautions
that visual estimates of sulphide abundance should never be considered a proxy
or substitute for laboratory analysis.  Laboratory assay results are
required to determine the widths and grade of mineralisation.  The Company
will update the market when laboratory analytical results become available.

 

Competent Person Statement

The information in this announcement relating to Exploration Results is based
on information compiled by Neil Hutchison, who is a Technical Director of Mila
Resources, and a member of The Australasian Institute of Geoscientists. Mr
Hutchison has sufficient experience relevant to the style of mineralisation
and type of deposit under consideration, and to the activity he is undertaking
to qualify as a Competent Person as defined in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resource and
Ore Reserves".

 

Mr Hutchison consents to the inclusion in the report of the matters based on
his information in the form and context in which it appears.

 

**ENDS**

 

 

For more information visit www.milaresources.com or contact:

 

 Mark Stephenson                 info@milaresources.com

 Mila Resources Plc

 Jonathan Evans                  +44 (0) 20 7100 5100

 Tavira Securities Limited

 Nick Emerson                    +44 (0) 20 3143 0600

 SI Capital

 Charlotte Page / Susie Geliher  +44 (0) 20 7236 1177

 St Brides Partners Limited

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCFFFIIFFITFIF