REG - Mila Resources Plc - Success in First Drill Hole at Coffey Gold Deposit

Mila ResourcesAnnouncement

21/09/2022 12:30

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RNS Number : 1763A  Mila Resources PLC  21 September 2022

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

21 September 2022

Mila Resources Plc

('Mila' or the 'Company')

 

Success in First Drill Hole Completed at Coffey Gold Deposit During Next Round
of Drilling

 

Mila Resources Plc (LSE:MILA), the post-discovery gold exploration
accelerator, is pleased to announce highly encouraging preliminary results
from the Kathleen Valley Gold Project in Western Australia ('Kathleen Valley'
or the 'Project') as part of its ongoing ~13,500m programme.

 

Overview

·    Diamond core drill hole KVDD0035 has successfully intersected a ~10m
wide zone of sulphide bearing alteration (from 256.3-266.5m) which is visually
consistent with the previously reported mineralised gold-silver-zinc bearing
zone at the Coffey Deposit.

·    A 5.63m wide heavily mineralised core zone (from 259.55-265.18m)
occurs in the centre of the alteration zone comprising of semi-massive,
stringer, vein and quartz breccia sulphides (pyrrhotite and chalcopyrite)

·    The zone is heavily bleached, silicified, and ductile deformed
defining the targeted zone which hosts the Coffey mineralisation in the
previously reported drill holes.

·    KVDD0035 was drilled on the north-east extension of the central
"Discovery Line" and is situated 44m down dip from KVRD0026 and 30m down dip
from KVDD0033 which returned;

§ KVRD0026: 6.6m @ 14.9 g/t Au & 21.8 g/t Ag including 5.0m @ 18.9 g/t Au
& 18.1 g/t Ag

§ KVDD0033: 8.0m @ 2.9 g/t Au & 6.6 g/t Ag including 3.0m @ 5.8 g/t Au
& 7.4 g/t Ag

·    KVDD0035 intersected the mineralisation 220m vertically below surface
and now extends mineralisation to 200m down dip as a continuous mineralised
zone.

·    The next hole KVDD036 was stepped out 100m below KVDD0035 and has the
potential to extend the mineralised zone to 300m in length down dip and to
300m below surface presenting a significant expansion in the footprint and
tonnage of the Coffey Deposit.

·    he core is currently being sampled and will be sent off for assaying
at an independent laboratory in Perth.

Figure 1: bleached, silicified, and ductile core samples from KVRD0035

 

 

Figure 2 (left): Semi-massive sulphide and figure 3 (right) quartz breccia
sulphides (right) within altered ore zone in diamond core hole KVDD0035.

 

Figure 4: altered and mineralised zone within KVDD0035.  Yellow marks and
depths show the start and end of the main alteration zone with the red markers
defining the heavily altered sulphide bearing zone which typically carries the
Au-Ag mineralisation at the Coffey Deposit. Green boxes show the core
locations of the zoomed in left and right images above.

 

Mark Stephenson, Executive Chairman of Mila commented: "Today's results
underpin our findings to date and demonstrate consistently encouraging
intersections with commercial grades and widths.  We have the confidence to
say that we are still on track with our objective to signficantly enhance the
initial JORC Resource at Kathleen Valley, and that these latest results have
justified our strategy to step out to the next hole with the intention of
expanding our mineralised footprint.

 

"We remain extremely excited about the potential for Kathleen Valley, and our
most advanced Coffey target, as we look to build a sizeable JORC inventory
over the coming months."

 

Further Information

Coffey continues to deliver success with the first diamond core hole of the
current drilling program intersecting the altered and mineralised shear zone
at the predicted depth.  A 10.2m wide ductile shear zone comprising of
bleached, silicified and variably sulphide mineralised (pyrrhotite &
chalcopyrite) basaltic rocks was intersected, which is consistent with the
Au-Ag-Zn bearing zones previously reported from the Coffey Deposit.  The
broad altered zone contains a 5.6m wide heavily altered and sulphide
mineralised central core zone which contains semi-massive, stringer, vein and
quartz breccia sulphides (pyrrhotite and chalcopyrite) consistent with the
higher-grade mineralised zones previously reported.  KVDD0035 proves the
continuity of the very planar 55(0) north-east dipping shear zone which has
been very consistent and predictable to date.

 

This has given Mila's geologists great confidence and as a result the next
hole KVDD036 is targeting a step out position of 100m down dip of this KVDD035
intersection position and is the largest step out hole to date drilling to a
depth of 350m.  If the mineralised shear zone continues to behave itself the
hole should intersect the mineralised zone at around 320m down hole.  This
will extend the known mineralisation to approximately 300m down the dip of the
shear zone to the north-east and to a vertical depth of around 300m below
surface.  This will drive the targeting positions of the next 3 planned drill
holes and has the potential to significantly increase the footprint and
tonnage of the Coffey Deposit mineralisation.

 

The samples are currently being cut, sampled and sent to a commercial
laboratory in Perth for assay analysis and will be reported to the market when
they are available.

 

DrillCore drilling contractors have been commissioned to undertake an initial
2,000m of drilling, comprising of five deep diamond core drill holes at Coffey
as Mila step backs to the north-east and tests the mineralised system down to
a vertical depth of approximately 300-350m (Figure 5).  Drilling will also
test the potential of the additional lodes, which were intersected in the last
round of deeper drill holes.

 

 

 

Figure 5: 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. KVDD0025 is shown as
thick orange trace and KVDD036 as thick magenta trace.

 

 

 

Figure 6: Cross Section showing defined Coffey mineralisation and projected
mineralisation (dashed line) with position of hole KVDD0035 & KVDD0036.

Figure 7: Night shift drilling of KVDD035 at time of the intersection.

 

 

**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

 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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