REG - Mila Resources Plc - Stage 2 Drilling to Commence at Kathleen Valley

Mila ResourcesAnnouncement

05/08/2022 07:00

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RNS Number : 0088V  Mila Resources PLC  05 August 2022

 

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

 

5 August 2022

Mila Resources Plc

('Mila' or the 'Company')

 

Stage 2 Drilling to Commence at Kathleen Valley Gold Project

 

Mila Resources Plc (LSE:MILA), the post-discovery gold exploration
accelerator, is pleased to confirm that its Stage 2 drilling programme is
poised to commence at the Kathleen Valley Gold Project in Western Australia
('Kathleen Valley' or the 'Project') as part of its ongoing ~13,500m
programme.  This follows the success of Stage 1, which delivered excellent
results at the flagship Coffey Deposit ('Coffey'), defining mineralisation
over a zone 200m long, 220m down dip and ranging from 2m to 10m in true
thickness, with results including 6.6m at almost 15 grams gold and 22 grams
silver.  Stage 2 will look to build on the success of these results,
focussing solely on Coffey, as it ultimately looks to build a significant
commercial resource at the Project, which 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.

 

Overview

·    Regulatory Programme Of Work ('POW') approvals have now been received
from the Department of Mines, Industry, Regulation & Safety ('DMIRS')

·    The POW is valid for 48 months and permits the drilling of 30 diamond
core holes and 60 Reverse Circulation ('RC') drill holes within E36/876

·    Heritage & Environment Surveys were completed in April 2022 and
approval was granted to proceed with Stages 2 & 3 drilling at the Coffey
Deposit

·    Tjiwarl Aboriginal Rangers were engaged to assist with rehabilitation
of the completed Stage 1 drill sites ahead of the next phase of drilling

·    Site works are scheduled to begin next week for the Stage 2
programme, with the drilling contractor set to commence diamond core drilling
soon afterwards

·    Drilling will step back and drill deeper under the Coffey
mineralisation to vertical depths of 300-350m

 

Mark Stephenson, Executive Chairman of Mila commented: "Given the excellent
results of our Stage 1 drill campaign, which returned the highest assays
received to date and defined a sizeable mineralised zone, we are excited to
get to work with our Stage 2 programme. Coffey is proving to be a standout
deposit, with all the geological signatures of a major new mineralised system,
and our focus is now to test the extent of this system by targeting the deeper
high-grade zone.  With our geological team very impressed at the extent of
mineralisation uncovered during Stage 1, we can't wait to see what Stage 2
brings."

 

Further Information

A Programme of Work was submitted to DMIRS in April 2022 for regulatory
approval to undertake clearing and earthworks for the planned Stage 2 & 3
drilling activities at the Coffey Deposit within the Kathleen Valley tenement
E36/876.   The POW was recently approved and is valid for a period of 48
months and permits the drilling of 30 diamond core holes and 60 RC drill holes
within E36/876.  Heritage and Environmental surveys were also completed by
the Tjiwarl Aboriginal Corporation (Traditional Land Owners) and Trace
Ecology, who were engaged by Mila Resources ahead of the POW approvals.  A
large area surrounding the Coffey Deposit has now been approved by the
Heritage survey (Figure 1) allowing Mila to progress the next stages of
drilling.

 

Mila has completed rehabilitation and contouring of the finished Stage 1 RC
and diamond drill sites, which will be reseeded with native plant species by
the Tjiwarl Aboriginal Rangers who are a work group set up by the traditional
landowners to assist with land care and indigenous employment. The Tjiwarl
Rangers will also assist with monitoring the upcoming land clearing of the
planned Stage 2 drill sites to ensure land damage and flora impacts are
minimised as much as practically possible.

 

Earthworks are scheduled to commence next week using Bundarra Contracting,
which is owned and operated by a Tjiwarl family member. DrillCore drilling
contractors have been commissioned to undertake an initial 2,000m of drilling,
comprising of 5 deep diamond core drill holes at Coffey as Mila step backs to
the northeast and tests the mineralised system down to a vertical depth of
around 300-350m (Figure 2).  Drilling will also test the potential of the
additional lodes, which were intersected in the last round of deeper drill
holes.

 

Fig1: Plan view showing southwest corner of E36/876 and the defined Coffey
Mineralised Zone with completed drill collars (black & blue dots).
Planned drill holes (magenta dots) are shown within the large Heritage Cleared
Zone (800m x 420m) providing sufficient room for considerable drilling and
expansion of the mineralisation.

Fig2: Drill collar plan showing RC drill holes (black), Diamond drill hole
(blue) and Stage 2 planned holes (magenta).  The existing JORC resource zone
is shown with the new mineralisation extension zone.  Gold intersection bars
are shown in red with reported intersection positions. Stage 2 drilling as
shown in the red oval will test for NE down dip extensions at depth.  Stage 3
will step out further along strike looking for new undiscovered extensions.

 

**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

 

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