REG - Mila Resources Plc - Liontown Li JV Update & Drilling Programme Results

Mila ResourcesAnnouncement

11/10/2023 07:15

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RNS Number : 7020P  Mila Resources PLC  11 October 2023

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

11 October 2023

Mila Resources Plc

("Mila" or "the Company")

 

Liontown Lithium JV Update & RC Drilling Programme Results

 

Mila Resources Plc (LSE:MILA), the post-discovery exploration accelerator, is
pleased to update shareholders on progress with Liontown Resources Limited
(ASX:LTR) ("Liontown") regarding its arrangements to enter into a joint
venture ("JV") and assay results from the recent RC drilling programme at the
Company's Kathleen Valley Gold Project in Western Australia ('Kathleen Valley'
or the 'Project').

 

Overview

·    Good progress being made with Liontown to commence its phased work on
the JV.

·    Work is now well underway with Liontown to source water and secure
heritage survey clearances ahead of exploration work including soil sampling
and trenching at target areas.

·    Liontown lithium exploration work is planned in the northwest,
northeast and central areas of Kathleen Valley.

·    Recent assays from the six-hole reverse circulation ('RC') programme
completed in late June 2023 for 820m uncovered critical structural features
and supergene mineralisation that provides further indications of the
Project's mineralisation potential width.

 

Mark Stephenson, Executive Chairman of Mila commented: "Since securing our
recent funding, we are excited to have kicked off several key preliminary work
streams with Liontown ahead of the lithium exploration programme. We are very
fortunate, as a junior exploration company, to be surrounded by leading mining
groups in Australia and having the opportunity to work with and harness the
expertise of a multi-billion-dollar mining company. The required social and
environmental work is now underway in earnest and once completed it will allow
Liontown to begin its exploration work targeting lithium mineralisation in the
northwest, northeast and central areas of the Project where pegmatite swarms
are evident that may be part of the same mineralisation corridor as Liontown,
immediately to the North of our project.

 

"Separately, on the gold exploration, the recent assays from our relatively
limited drilling programme have helped us to better understand the direction
and diameters of the gold mineralisation at the Project. These suggest that
the gold is focused, aiding our understanding of the structure. We embarked on
this drilling campaign to understand the structure of the orebody and each
drill hole provides further intelligence to prove up our geological model that
it is highly structured, featuring concentrated zones of high-grade
mineralisation."

 

JV arrangements with Liontown

The Company and Liontown have held a number of meetings to establish a
critical path towards commencing lithium exploration at Kathleen Valley.  Due
to a scarcity of water within the region and as part of the preliminary work
programme, Liontown will sink a number of drill holes to test for water
imminently. This is with a view to securing future water supply for its
forthcoming mining operations at its significant Kathleen Valley Lithium Mine,
due to commence production in mid-2024.

 

Liontown has identified several lithium targets in the northern and central
areas of the Project, which coincide with the gold target areas previously
identified by Mila (Figures 1 & 2).  Mila and Liontown are working
jointly on conducting Heritage Surveys across these areas.  Under the JV,
Mila will be able to access and conduct gold and base metal test work from the
drilling core provided by Liontown drill programme. The board of Mila expects
that this will significantly reduce the overall cost and timeframe of Mila's
exploration activities within the coincident areas.

 

Liontown is also planning extensive low impact soil geochemistry and surface
geophysical surveys over the Project and is in discussions with The Tjiwarl
Aboriginal Corporation ("TAC"), the traditional land owners, to ensure that it
avoids any sensitive heritage areas. This work should provide further data to
complement the soils work previously conducted by Mila, which identified the
northern and central gold targets (Figure 2) and allow geochemical analysis in
untested areas within the Licence area. Further progress updates will be
provided in due course.

 

 ASX code  Company Name
 BGL       Bellevue Gold
 LTR       Liontown
 IGO       IGO Group
 BHP       BHP Group

 

 

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

 

 

 

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

Gold Drilling results

The recent drilling of six reverse circulation ("RC") holes for a total of
820m in June 2023 was undertaken to test and assess the resource by stepping
out into a previously untested northwestern border.  The drilling campaign
has uncovered structural features and supergene mineralisation providing
further indications of the Project's mineralisation potential. These findings
will be integrated into a comprehensive geological-structural review of the
property, which should reduce the exploration risk associated with further
work on the property.

 

Two drill lines were completed testing the strike extent of mineralisation 50m
and 100m along strike to the northwest where it was open and untested (Figure
3).  A best assay intersection of 4m at 0.36 g/t Au from 36-40m depth was
returned from KVRC0044 (Figure 4). This intersection sits high up in the drill
hole and is most likely associated with supergene mineralisation from the
Coffey system or potentially a second nearby system.  Further work is
required to identify the source of this supergene anomaly.

 

The drilling campaigns have revealed critical insights about the Kathleen
Valley Gold project, in particular that it is characterised by a highly
structured orebody featuring concentrated zones of high-grade mineralisation
shoots (notably 6.6m at 14.9 g/t gold and 10.0m at 8.38 g/t gold) within a
sulphide bearing shear structure (Figure 4).

 

 

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.

 

 

 

Figure 4: Cross Section through the core of the Coffey Deposit showing
high-grade gold & silver intersections (red) within the mineralisation
outline (yellow).

 

**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
 Susie Geliher                +44 (0) 20 7236 1177

 St Brides Partners Limited

 

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