REG - Mila Resources Plc - Liontown Completes Drone Survey at Kathleen Valley

Mila ResourcesAnnouncement

13/02/2024 07:00

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RNS Number : 8626C  Mila Resources PLC  13 February 2024

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

 

13 February 2024

Mila Resources Plc

('Mila' or the 'Company')

 

Operational Update

JV Partner Liontown Resources Completes Aerial Image Survey at Kathleen Valley
Project

 

 

Mila Resources Plc (LSE:MILA), the post-discovery gold exploration
accelerator, is pleased to update shareholders on the completion of the aerial
image survey ('drone survey' or survey')  at the Kathleen Valley Gold Project
('Kathleen Valley' or the 'Project') undertaken by joint venture partner,
Liontown Resources Limited (ASX:LTR).

 

Highlights

•     Liontown commissioned a drone survey to map vegetation using a
non-invasive approach.

•     The survey flights took place from January 30th to February 4th,
covering both the LTR and Mila JV territories.

•     Environmental and Heritage surveys are conducted to locate sites
of state and local heritage significance, as well as potential conservation
areas. Upon completion and identification of significant zones, further
exploration operations can proceed with designs tailored around these areas.

 

As announced on 30 ( )January 2024, Liontown commissioned an aerial image
survey, for its baseline studies to comply with heritage and environmental
regulations, ahead of commencing sampling and drilling works on the project.
Liontown has now completed the aerial image survey and will commence  a soil
sampling programme in due course. The assay results will then be used by
Liontown to determine drilling targets for lithium.

 

The Company will use the same soil samples and assay results for precious and
base metals to provide a more complete picture of the geological model for
Kathleen Valley and determine any new targets outside of the recent focus on
the Coffey deposit.

 

Mark Stephenson, Executive Chairman of Mila Commented: "We're entering a busy
period at Kathleen Valley, and the benefits of our collaboration with Liontown
are becoming evident. Once the environmental and heritage surveys have been
completed, Mila will be able to advance in defining known targets in the
northern part of the property. Furthermore, Liontown's work in collecting soil
samples enables us the option to analyse them for precious and base metals,
providing a more comprehensive understanding of our license package and
guiding our next actions."

 

**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
 Damon Heath                  +44 (0) 20 3971 7000

 Shard Capital Partners LLP
 Susie Geliher                +44 (0) 20 7236 1177

 St Brides Partners Limited

 

 

 

Appendix

Overview of the JV Arrangement with Liontown

 

As announced on 27 July 2023, Mila entered into an option agreement with LBM
(Aust) Pty Limited, a subsidiary of Liontown, granting the option to explore
for lithium on the Kathleen Valley Licence Area. The terms of the agreement
are as below:

 

·    Liontown holds the option to acquire the right to extract lithium
from the Licence Area.

·    Liontown will fund the exploration and mining costs and bring the
benefit of its considerable knowledge of local geology to the project.

·    Liontown may acquire a 50% interest in the lithium rights on the
Licence for a consideration of A$200,000.

·    Liontown may acquire a further 30% interest in the lithium rights for
consideration of A$2,000,000.

•     Mila Resources currently maintains a 50% interest in the Lithium
Rights, representing 10% of the Lithium Rights following Liontown's full
exercise of its option.

•     Mila's substantial stake reinforces its role as a key stakeholder
in the future development and extraction of lithium resources.

 

Kathleen Valley Project

 

The Kathleen Valley Project is located in the Wiluna-Norseman gold belt in
Western Australia, a recognised tier one mining jurisdiction. The project is
adjacent to the high-grade Bellevue Gold Project, which exhibits similar
geological characteristics to Kathleen Valley, with gold-silver mineralisation
occurring within the same Mt Goode Basalt sequence.

 

 

Figure 1: Kathleen Valley regional geology map showing the north-south
corridor of Liontown mapped pegmatite swarms (magenta), minesites (red) and
tenure holding outlines.  Liontown's main areas of pegmatite focus are
highlighted by yellow circles and the water search areas are highlight in
light blue.

 

Mila acquired an interest in the project in 2021 following an initial round of
drilling in 2019. Two further drilling campaigns were carried out in 2022 and
2023, both of which intercepted high grade zones of gold, silver and zinc
mineralisation.

 

Highlights from the drill intercepts include:

 

·    6.6 metres@ 14.86 g/t Au & 21.79 g/t Ag.

·    8.0 metres @ 2.8 g/t Au & 6.6 g/t Ag

·    5 metres @ 4.26 g/t Au & 13.35 g/t Ag.

·    10 metres @ 8.38 g/t Au & 13.96 g/t Ag

 Figure 2: Kathleen Valley local geology map showing LTR mapped pegmatite
swarms and Mila's gold anomaly target areas defined by auger soil sampling.

Current geological theories align with that seen at Bellevue Gold, located
~7km to the south, and Bellevue Golds Government Well project, located on the
neighbouring tenement along strike to the north-west of Coffey.

 

Figure 3: Drill hole plan showing gold intersection (red bars) and silver
intersections (grey bars) on drill hole traces.  The Coffey Deposit
mineralisation is outlined (yellow) as well as the defined positions of the
DHEM and FLEM geophysical plates.  The recent assay returned from KVRC0044 is
shown in the north of the map.

 

 

 

 

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