REG - Mila Resources Plc - Commencement of Drilling at Kathleen Valley

Mila ResourcesAnnouncement

03/12/2021 07:00

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RNS Number : 4997U  Mila Resources PLC  03 December 2021

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

 

3 December 2021

Mila Resources Plc

 

('Mila' or the 'Company')

 

Commencement of Drilling at 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

 

·    13,500m drilling programme has commenced at Kathleen Valley

·    11,100m of drilling and electromagnetic surveying scheduled to
increase maiden resource at the Coffey Deposit

·    2,400m of RC drilling planned to test two new targets to the north of
the current resource

 

Following completion of the acquisition of its 30% in the Kathleen Valley gold
project in Western Australia, which Mila completed on 23 November 2021, the
Company is pleased to announce details of the drilling programme that is
currently underway (Figure1).

 

Mila has commenced a 13,500m drill campaign with the objective of expanding
the JORC resource in the southern area of the Project totalling 11,100m, as
well as exploring the other two northern targets by drilling an additional
2,400m.

 

Resource Drilling at Coffey Au-Ag-Zn Deposit

The Company has embarked on a comprehensive exploration campaign with the view
of expanding the acquired maiden JORC Inferred gold resource at Kathleen
Valley's Coffey Au-Ag-Zn Deposit (21,000oz @ 2.1g/t Au*). The initial 11,100m
drilling campaign is intended to increase the JORC resource in the southern
area of the licence, with 40 new RC & DD holes as well as geophysical
testing of deeper holes using downhole-electromagnetic surveying (DHEM). This
will include drilling to greater depths of 250-350m, expanding the current
footprint of the resource by step out drilling and selective in-fill drilling
to test the calculated JORC Exploration Target of 145,000-280,000oz which has
a grade range of 1.8-2.5g/t Au.

 

The Coffey resource was estimated by the Project vendor in late 2020,
incorporating 12 RC drill holes totalling 2,160m.  Since the acquisition of
the Project, Mila has completed one diamond drill hole to a depth of 240.9m
and 10 reverse cycle (RC) holes ranging from 111-200m in depth for a total of
1,505m into the Coffey Deposit resource zone. The 11 completed drill holes
(1,755.9m) focussed on in-fill drilling within the resource zone, as well as
step-out drilling around the edges of the zone to further define the quality
and continuation of the mineralisation both up and down dip, as well as
along-strike to the southeast (Figure 2 & Table 1).

  

Geological logging of these holes has verified the continuation of the
alteration, sulphides and quartz veining which typically hosts the Au-Ag-Zn
mineralisation within the target zone of the Coffey Deposit (Figure 3), giving
the Company confidence as it moves forwards with the drilling programme well
into 2022.

 

Samples for all completed holes have been despatched and are currently being
tested at an interstate independent laboratory to speed up the sample
turnaround time. Mila expects to have results over the coming weeks and will
update investors once they have been collated and interpreted.

 

Two new targets - Sturrock and Powell Prospects

The Company intends to begin drilling at two new major targets, to the north
of the current resource, after the completion of the planned Coffey Deposit RC
drilling. The Sturrock Prospect is located ~3.5km to the NNW of Coffey, on a
sheared contact between mafic and ultramafic rocks which hosts the historical
Main Road Au Pit, 2km along strike to the NE (Figure 4). Recent auger soil
sampling (2019) highlighted a 700m x 250m zone of anomalous gold in soils and
shallow historical aircore drilling returned zones of highly anomalous gold
grades of between 0.1-1.1g/t Au. 12 RC holes totalling 2,400m with
downhole-electromagnetic surveying of the deeper holes is scheduled and
testing the anomaly to depth in an optimal direction to the shears.

 

The Powell Prospect is located 3.1km NNE of Coffey and 2.0km ESE of Sturrock
in the northeast portion of the tenement (Figure 4). The auger soil sampling
highlighted a 500m x 500m "X" shaped zone of anomalous gold in soils where it
appears that two shear zones intersect. Field work located an historical
shallow shaft and pit which has been dug in the area and further investigative
work is required prior to drill testing.

 

Drilling is expected to commence in mid-January following the festive holidays
in Australia.

 

Mark Stephenson commented:

 

"I am delighted at the progress on the ground at Kathleen Valley. The
commitment and ingenuity of the team in Western Australia has enabled us to
advance the Project as we look to build on the maiden resource and unlock the
wider potential of the asset.  As we have explained before, we believe that
the current resource and Exploration Target represents just the 'tip of the
iceberg' as these were delivered from just 2,160m RC drilling to date.
Kathleen Valley is located in a region which hosts some of the largest gold
projects in Australia and with this compelling geological address, I am
extremely excited to see the results as they are received from the assay
laboratories."

 

Table 1: Drillhole collar details

 HoleID   Type  Depth  Dip  Azimuth  MGA_East  MGA_North  MGA_RL  DrillComp   Year Drilled
 KVRC001  RC    191.0  -60  240      258846    6946629    488.6   JarrahFire  2019
 KVRC002  RC    161.0  -60  240      258823    6946615    487.4   JarrahFire  2019
 KVRC003  RC    120.0  -60  240      258787    6946594    486.1   Ausdrill    2020
 KVRC004  RC    140.0  -60  240      258806    6946604    486.6   Ausdrill    2020
 KVRC005  RC    220.0  -60  240      258866    6946641    489.9   Ausdrill    2020
 KVRC006  RC    190.0  -60  240      258784    6946655    485.6   Ausdrill    2020
 KVRC007  RC    220.0  -60  240      258824    6946667    487.0   Ausdrill    2020
 KVRC008  RC    160.0  -60  240      258847    6946571    486.8   Ausdrill    2020
 KVRC009  RC    214.0  -60  240      258884    6946592    488.1   Ausdrill    2020
 KVRC010  RC    132.0  -60  240      258716    6946672    485.4   Ausdrill    2020
 KVRC011  RC    186.0  -60  240      258750    6946692    486.5   Ausdrill    2020
 KVRC012  RC    226.0  -60  240      258784    6946713    488.0   Ausdrill    2020
 KVDD013  DD    240.9  -60  240      258928    6946619    490.5   DrillCore   2021
 KVRC014  RC    180.0  -60  240      258894    6946567    487.5   Ausdrill    2021
 KVRC015  RC    117.0  -55  260      258845    6946545    485.4   Ausdrill    2021
 KVRC016  RC    129.0  -60  225      258846    6946570    486.7   Ausdrill    2021
 KVRC017  RC    200.0  -65  240      258904    6946605    488.9   Ausdrill    2021
 KVRC018  RC    150.0  -60  240      258835    6946622    488.0   Ausdrill    2021
 KVRC019  RC    183.0  -65  240      258856    6946635    489.0   Ausdrill    2021
 KVRC020  RC    177.0  -55  240      258840    6946681    488.0   Ausdrill    2021
 KVRC021  RC    111.0  -60  240      258773    6946647    485.6   Ausdrill    2021
 KVRC022  RC    147.0  -60  240      258770    6946701    487.0   Ausdrill    2021
 KVRC023  RC    111.0  -60  240      258736    6946682    486.0   Ausdrill    2021

 

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 3463 5000

 Brandon Hill Capital Limited

 Nick Emerson                   +44 (0) 20 3143 0600

 SI Capital

 Susie Geliher                  +44 (0) 20 7236 1177

 St Brides Partners Limited

 

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