REG - Mila Resources Plc - Kathleen Valley Final Drilling Results

Mila ResourcesAnnouncement

20/12/2022 12:15

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RNS Number : 3499K  Mila Resources PLC  20 December 2022

 

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

 

20 December 2022

Mila Resources Plc

('Mila' or the 'Company')

 

Kathleen Valley Final Drilling and DHEM Survey Results

 

Mila Resources Plc (LSE:MILA), the post-discovery gold exploration
accelerator, has now received the  final results from its 2022 drilling
campaign on its Kathleen Valley Gold Project in Western Australia ('Kathleen
Valley' or the 'Project').

 

Kathleen Valley is located in a region that hosts some of the largest gold
projects in Australia, including the adjacent, high-grade Bellevue Gold
Project, the high-grade producing Agnew Gold Mine located ~50km to the south
and the Bronzewing Gold Mine 50km to the northeast. Initial drilling has
confirmed consistent, high-grade mineralisation and Mila has been focussed on
expanding this to define a sizeable gold-silver resource.

 

Overview

·    KVDD0038 was completed to a depth of 365.5m in the top northeast
corner of the drill area

·    Whilst visual alteration and structural deformation was observed at
the predicted depth, results show subeconomic grades in these deeper holes,
with the best result being 1m @ 0.29g/t Au from 263m

·    Modelling defined a consistent large, moderate strength conductor
south and above of these two holes as well as a strong conductor to the south
in the known central sulphide zone

·    The DHEM survey is still seeing the original high conductance central
sulphide source zone which has a very strong EM signal and forms the core of
the Coffey Deposit

 

Mark Stephenson, Executive Chairman of Mila commented: "2022 has proved to be
a very positive year, with two drilling campaigns that have chased Kathleen
Valley's highly mineralised system at depth and along strike.  Having
delivered excellent drill results from the first 34 holes, including 1m @
27.60 g/t Au & 47.50 g/t Ag from 211m (KVRD026), with further analysis and
as we move into 2023, we plan to commence a targeted drilling campaign focused
on extending the mineralisation along strike to the NW where it is open and
untested.   We also anticipate publishing an updated independently modelled
JORC resource estimate; currently, the Project has  an JORC Exploration
Target (JET) of 145,000-280,000 oz at 1.8-2.5g/t gold, which we hope to grow
substantially.

 

"Our geologists remain confident that the mineralogy at the Coffey deposit is
consistent with Bellevue-style mineralogy in the region and that this exciting
project, situated in the heart of some world-class mining assets, is
economically viable.  We look forward to updating shareholders on our
progress and wish them all a very happy and prosperous 2023."

 

Down Hole Electro-Magnetic (DHEM) Survey

DHEM surveying was completed in the deep and easterly most holes KVDD037 and
KVDD038.  DHEM logging completed from 50-350m downhole in KVDD0037, but, the
lowest section was blocked and the section from 350m to end of hole (EOH
448.2m) could not be surveyed.  DHEM logging in hole KVDD0038 was completed
from 50-363 m downhole (EOH 365.5m).

 

KVDD0037 produced a moderate strength, broad large in-hole/off-hole anomaly
apparent from ~100-340m+ DH but the hole was blocked below this depth.  The
source is of large areal size, <500S and centred above and south of this
hole - dip ~55-65deg.  In late channels a strong off-hole anomaly is centred
at ~100-260m DH and represents the high conductance central known sulphide
zone above and south of this hole with the same approximate stratigraphic
position.

 

KVDD0038 also produced a moderate strength off-hole conductor positioned
~30-40m to the edge south of this hole at ~260-270m.  This is consistent with
the same conductor as mentioned above. A strong off-hole conductor is
positioned above and south of this hole, consistent with the known main
central sulphide zone (Coffey Deposit).

Plan view and section view (looking west) of the DHEM survey showing the
locations of KVDD0037 & KVDD0038 (black dotted traces) and the combined
modelled plates (dashed) in relation to previously modelled plates (solid).
Joint modelling has defined a consistent large, moderate strength conductor
above south of these two holes (red-green plates) and a strong conductor above
south in central known sulphide zone as below (purple/orange plates).
KVDD0037 intersects this source in the lower section at ~340m+ supporting the
visual observation in the core.

 

Competent Person Statement

The information in this announcement relating to Exploration Results is based
on information compiled by Neil Hutchison, who is 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 Financial Limited

 Nick Emerson                   +44 (0) 20 3143 0600

 SI Capital

 Susie Geliher and Max Bennett  +44 (0) 20 7236 1177

 St Brides Partners Limited

 

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