REG - Mila Resources Plc - Operational update

Mila ResourcesAnnouncement

07/02/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220207:nRSG7726Aa&default-theme=true

RNS Number : 7726A  Mila Resources PLC  07 February 2022

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

 

7 February 2022

Mila Resources Plc

('Mila' or the 'Company')

 

Operational Update

 

Mila Resources Plc (LSE:MILA), the post-discovery gold exploration
accelerator, is pleased to confirm that the project team have mobilised on
site and final preparations are now near complete as it prepares to recommence
drilling at its Kathleen Valley Gold Project in Western Australia ('Kathleen
Valley' or the 'Project') as part of its ~13,500m programme.  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, and the
gold producing Wiluna Mining located ~60km to the north. Initial drilling has
confirmed consistent, high-grade mineralisation (including hole KVRC019 at the
Coffey deposit) and Mila is now focussed on expanding this to define a
sizeable gold-silver resource.

 

Overview

·    Project team mobilised on site and final preparations for ~11,000m
drill programme near complete, with exploration site coreyard-office
constructed, drill rig delivered and drilling due to commence later this week

·    Drilling to primarily focus on the Coffey deposit ('Coffey'), in the
southern area of the Project, with ~9,000m to be drilled

·    Following the initial 12 hole defined JORC Inferred resource of
21,000oz at Coffey, the team have defined a first stage JORC Exploration
Target ('JET') of 145,000-280,000 through down hole Electro Magnetic surveys.
This initial footprint will be drill tested before further step out work is
conducted to test the full extent of the system

·    Drilling will build upon successful execution of an initial 11-hole
drill programme (1,755.9m) in December 2021, which returned exceptional
results, including a 10m wide zone of mineralisation with multiple +10g/t Au
& Ag grades at Coffey (hole KVRC019)

·    ~2,000m of exploration drilling to also be undertaken at one northern
target, Sturrock, where zones of highly anomalous gold grades have been
identified

·    Two untested anomalous gold target areas, which includes Powell, will
be further field investigated for potential future drill testing

·    Pictures from site will be shared on social media as and when they
become available

·    Results expected late Q1 2022, which will then be used to define
future activity as part of its fully funded 2022 exploration and development
programme

·    On drill completion, Mila has the right to purchase a further 25%
interest in the Kathleen Valley, taking total project holding to 45%

 

 

 

Mark Stephenson, Executive Chairman of Mila commented: "We have so far only
drilled circa 1,750m and we have identified consistent and exceptionally
high-grade mineralisation, so we are incredibly excited to resume on-site
activity and see what a further ~11,000m worth of drilling will generate.

 

"We are dedicating most of the drilling programme to the Coffey deposit given
we have already established an impressive maiden resource from just 12 drill
holes, with significant expansion potential. Our focus is to further test the
known mineralisation at the target, building upon the impressive 10m zone with
+10g/t Au result we announced in December 2021, and then conduct step out work
to test the full extent of the system. Alongside this we will look at new
targets in the northern area of the licence, which have the potential to
significantly expand the resource footprint of the Project as zones of highly
anomalous gold grades have been identified.

 

"We look forward to sharing updates with you in due course and will be adding
pictures of activities on our social media channels."

 

Neil Hutchison, Chief Geologist of Mila Resources, commented: "The last set of
drill results returned the most consistent and best overall gold intersections
I've seen in my 30-year career, and I firmly believe Coffey is a standout
deposit within a highly prospective project.  With an initial 21,000 oz gold
JORC Inferred resource defined and 145-280koz gold JORC Exploration Target
from only 2,160m RC drilling we believe this is just the 'tip of the iceberg'
and accordingly are excited to get to work to increase resource confidence and
build ounces.  Given the quality of the results and our confidence in the
Project, we are looking to increase the size of the permitted work area in the
upcoming Heritage Survey so we can maximise the full potential of the Project.
 We look forward to sharing further details on this and the drill programme."

 

Further Information

Kathleen Valley is located on the Wiluna-Norseman gold belt in Western
Australia, which is among the most prolific gold regions in Australia.  It
hosts several tier one mining companies, including Bellevue Gold Ltd
('Bellevue'), which has built a 3.0Moz @ 9.9g/t Au resource at its adjacent
project, and Wiluna Mining's 6.4Moz @ 2.13g/t Au mine, located ~60km to the
north of the Project, which is growing production from ~52koz to ~250koz per
annum.

 

An initial 11-hole Drill Programme totalling 1,755.9m was completed at
Kathleen Valley in December 2021 as part of a planned ~13,500m drill
programme. This identified high-grade quartz-sulphide bearing mineralisation
at the Coffey deposit in the southern area of the Project, similar to the
style of mineralisation at Bellevue.  Following the success of this initial
drill programme, which returned a stellar hole of 10m @ 8.38g/t Au, 13.96g/t
Ag & 0.89% Zn from 165-175m, including 1m @ 14.61g/t Au, 20.17g/t Ag &
2.92% Zn, ~9,000m worth of drilling will now be undertaken at Coffey.  The
intention is that this drilling will improve confidence in and understanding
of the structures forming this high-grade zone and define an interpreted
north-plunging shoot in order to deliver more high-grade mineralisation.

 

~2,000m of exploration drilling will also be undertaken at the Sturrock
Prospect, located ~3.5km NNW of Coffey, to better determine the resource
potential. Auger soil sampling at Sturrock has highlighted a 700m x 250m zone
of anomalous gold in soils whilst shallow historical aircore drilling has
returned zones of highly anomalous gold grades of between 0.1-1.1g/t Au. Two
untested anomalous gold target areas will be further field investigated for
potential future drill testing. This includes the Powell Prospect located
3.1km NNE of Coffey and 2.0km ESE of Sturrock, where auger soil sampling has
highlighted a 500m x 500m "X" shaped zone of anomalous gold in soils where it
appears that two shear zones intersect.

 

The Project currently has an initial JORC Inferred resource of 21,000 oz gold
and a JORC Exploration Target of 145,000-280,000 oz gold.  This has been
defined solely at Coffey from 12 reverse circulation drill holes totalling
2,160m.  The current ~13,500m drill programme is designed to improve resource
confidence and unlock the Project's intrinsic value.  Drill results are
expected late Q1 2022 and will be used to form the basis for future
exploration and development work.

 

Mila currently has a 30% interest in Kathleen Valley, which it acquired in
November 2021.  On the successful completion of 11,000 metres drilling at
Kathleen Valley, the Company will have a right to purchase a further 25%
interest in the Project for consideration of £2,343,750 by way of issuing
97,656,750 new Ordinary Shares at a price of £0.024 per Ordinary Share in the
Company.

 

**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 Securities Limited

 Nick Emerson                      +44 (0) 20 3143 0600

 SI Capital

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

 St Brides Partners Limited

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDBDGDDDDGDGDS