REG - Mila Resources Plc - Mineralisation Extended at Coffey Deposit

Mila ResourcesAnnouncement

20/04/2022 15:00

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RNS Number : 7904I  Mila Resources PLC  20 April 2022

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

 

20 April 2022

Mila Resources Plc

 

('Mila' or the 'Company')

 

Mineralisation Extended at Kathleen Valley's Coffey Deposit

 

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

·    Stage 1 diamond core drilling completed with 11 holes for 2,763m
drilled in 2022

·    All holes intersected the projected mineralised zones which comprises
disseminated, stringer and semi-massive to massive sulphide mineralisation as
well as Bellevue style quartz-sulphide veins

·    A second deeper sulphide zone has been intersected in the last two
holes below the main zone, extending the mineralisation down to a vertical
depth of 285m below surface

·    Drilling has now defined mineralisation over a zone 200m long and
220m down dip, which is open at depth and along strike

·    The mineralisation at Coffey forms a very planar and consistent zone
which is now starting to show potential for multiple lode structures at depth

·    Assay results for the diamond core are still outstanding from the
laboratory

 

The Company has now completed Stage 1 of its maiden diamond core drilling
programme (Table 1) at the Coffey Deposit, which is located in the southern
portion of the Kathleen Valley Project.

 

Mila has maintained a 100% success rate with all holes intersecting the
modelled mineralisation target zone.  This has resulted in potential
Au-Ag-Cu-Zn sulphide mineralisation being intersected over an area more than
200m long by 220m down dip which is open along strike and down dip at depth
and is awaiting assay validation.

 

Importantly, the last two holes of the drill programme (KVDD033 & 034)
were planned to test the north trending down-plunge position of the developing
Bellevue Style vein system.  In addition to intersecting these veins,
semi-massive to massive sulphide mineralisation was also intersected below the
targeted main zone (see figures below), opening up the potential for multiple
lode structures at depth, similar to the Bellevue Deposit 6km to the south.

 

Neil Hutchison, Chief Geologist of Mila Resources, commented:

 

"We have had remarkable success with our maiden diamond core drilling campaign
at Coffey.  Every hole has hit the target zone within metres of the predicted
depth as the system is so planar and consistent.  In addition, the widths and
quartz-sulphide zones intersected in the drilling are visually far better than
we expected.  This is very unusual for a gold deposit and the geologists in
the field continue to get excited as each and every hole is delivered.  The
presence of the Bellevue Style veins, the increasing chalcopyrite being seen
at depth, as well as this new deeper lower zone that is now emerging, means
that we can't wait until the assays are received from the labs to validate our
field observations."

 

Mark Stephenson commented:

 

"It is rare to find such consistently positive results from early-stage
drilling but that is exactly what we have achieved here at our Kathleen Valley
Gold Project.  The Coffey Deposit has all of the hallmarks of a very
significant find and I, and the operational teams on site, are united in our
optimism for the assays results, which we expect to receive from the
laboratory in the near future."

 

Table 1: Drillhole collar details

 HoleID   Type   Depth    Dip  Azimuth  East    North    RL     Drill      Year

                                                                Company    Drilled
 KVRD024  RC/DD  219.6    -62  240      258928  6946619  491.0  DrillCore  2022
 KVRD025  RC/DD  250.0    -70  240      258883  6946651  491.3  DrillCore  2022
 KVRD026  RC/DD  279.8    -68  248      258883  6946651  491.3  DrillCore  2022
 KVRD027  RC/DD  249.8    -72  240      258897  6946660  492.7  DrillCore  2022
 KVRD028  RC/DD  234.6    -62  240      258928  6946619  491.0  DrillCore  2022
 KVRD029  RC/DD  303.7    -72  240      258858  6946694  489.9  DrillCore  2022
 KVRD030  RC/DD  241.1    -72  240      258858  6946694  489.9  DrillCore  2022
 KVRD031  RC/DD  220.0    -62  240      258822  6946733  489.2  DrillCore  2022
 KVRD032  RC/DD  220.0    -62  230      258822  6946733  489.2  DrillCore  2022
 KVDD033  DD     234.7    -72  260      258885  6946652  491.3  DrillCore  2022
 KVDD034  DD     309.6    -80  240      258897  6946660  492.7  DrillCore  2022
 TOTAL           2762.9m

 

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 3463 5000

 Brandon Hill Capital Limited

 Nick Emerson                    +44 (0) 20 3143 0600

 SI Capital

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

 St Brides Partners Limited

 

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