REG - Mila Resources Plc - Yarrol Drilling Confirms Gold System Continuity

Mila ResourcesAnnouncement

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RNS Number : 4095R  Mila Resources PLC  03 February 2026

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

 

3 February 2026

Mila Resources Plc

('Mila' or the 'Company')

 

Yarrol Diamond Drilling Confirms Gold System Continuity:

Company Fully Funded for Q1 Resource Growth Campaign

 

Mila Resources Plc, the mineral exploration company looking to accelerate the
development of post-discovery assets, is pleased to provide results from its
maiden diamond drilling (DD) programme at the Yarrol Gold Project in
Queensland, Australia. The programme successfully demonstrated the continuity
of gold-bearing structures, with intercepts of ~5g/t gold traced from surface
to ~230 metres depth and provided critical insight into the structural
architecture of the system.  These results, which did not deliver the grades
anticipated at depth, has allowed the technical team to further refine the
Company's geological model for Yarrol.

 

While depth extensions along the Yarrol Fault corridor warrant further work
over the medium term, the most compelling and capital efficient near-term
opportunity lies in testing shallow targets along strike across the Yarrol,
Monal and Mt Steadman licences. The Company remains fully funded and on track
to commence RC drilling at Yarrol in Q1 2026.

 

Overview

 

·    Diamond drilling, chosen to define structure, has confirmed
continuity of gold-bearing features from surface to ~300m depth, though
high-grade intercepts were less consistent at depth than in shallow zones.

·    The programme successfully intercepted gold structures throughout the
tested depth range and confirmed grades of up to 5 g/t gold at depth,
validating the mineralised system's scale, however, mineralisation between
230m and 300m was lower grade and/or sporadic in holes MYDD207, MYDD208,
MYD209 and MYDD210.

·    Hole MYDD205 confirmed northern extension to gold mineralisation
beyond the historic resource area, building upon the earlier RC drilling.

·    The Gold-bearing structures have been confirmed to be continuous and
repetitive along strike, increasing confidence in the scale of the system.

·    Mila will now pursue additional near surface targets alongside
historical resources with the objective of generating multiple shallow (to a
depth of 150m) prospects featuring broad gold zones that can be efficiently
tested and advanced towards potential production.

 

Mark Stephenson, Managing Director of Mila Resources, commented:

"The recent diamond drilling programme has given us highly valuable
information regarding the continuity of our gold system at depth which will
help us understand structures controlling gold mineralisation, and provide the
data needed to make informed decisions about our next exploration programme.
The grades were lower than anticipated albeit they confirmed that gold
structures extend well below surface, with grades of 5 g/t still present at
depth; an important validation of the system's scale.

 

"Following the DD programme, the most compelling near-term opportunity for the
Company is to drill shallow targets along strike across the Yarrol, Monal and
Mt Steadman licences. These include multiple high-quality untested targets
alongside historical resources that can be tested in a low-risk and
capital-efficient manner.

 

"We've only just started to explore this licence package, and we are not
reliant on a single target or orebody but a portfolio of targets at Yarrol.
We continue to systematically test a highly prospective district with proven
gold endowment, and we are focussed on building a mineral resource of scale to
move to development. The geological insights from this programme will
strengthen our targeting as we move forward to the RC drilling programme that
is scheduled to begin next month and more generally our resource expansion
programme this year."

 

Further Information

 

The Company's maiden DD programme was designed to target potential extensions
at depth of known mineralisation at Yarrol Central and Ridge, covering
approximately 2km of the 20km Yarrol Fault corridor.

 

The diamond drilling programme successfully intercepted gold structures
throughout the tested depth range and confirmed grades of up to 6.8 g/t gold
at depth, demonstrating that the gold system remains active below the shallow
oxide zone.

 

The high-grade intercepts became less frequent at depth compared to the
Company's earlier shallow reverse circulation (RC) drilling results. To
investigate whether this reflected true geological variation or a sampling
issue, the Company deployed advanced photon assay technology on selected
samples. While photon assays showed modest grade improvements in some
intervals, results confirmed that gold distribution does change with depth,
most likely reflecting natural geological zonation, structural complexity, or
the transition from bulk RC sampling to narrow diamond core in a nuggety gold
system.

 

 Drill Hole  Intercept
 MYADD205    1m @ 6.8 g/t Au from 183 m

             1m @ 6.3 g/t Au from 187m

             1.2m @ 1.1 g/t Au from 229.8m
 MYADD206    1m @ 6 g/t Au from 143 m

             1m @ 1.2 g/t Au from 160 m
 MYADD207    0.8m 1.33 g/t Au from 264.2
 MYADD208    Awaiting return of all samples from drill hole.
 MYADD209    1m @ 5.05 g/t Au from 195m, partial results still
 MYADD210    Awaiting return of all samples from drill hole.

 

 

 

 Map of Q4 2025 Diamond Drilling completed at targets Ridge and Yarrol Central,
 part of the Yarrol property.

 

The broader intercepts from hole 205 are located in the northern extension
zone beyond the historical resource boundary, confirming approximately 200m of
strike continuity with high-grade intercepts of up to 16 g/t and 13 g/t gold
previously recorded in shallow RC drilling (MYARC204). The upcoming RC
campaign will target the Starlight and Ext-S zones to test for additional
shallow ounces beyond the existing resource footprint.

 

Strategic Implications

The DD programme has delivered important geological information, and the
Company now intends to pursue targets at Yarrol that are near surface (to a
depth of 150 metres), where broader zones of gold can be efficiently tested
and potentially developed. This conclusion is supported by:

·      Confirmation that gold-bearing structures are continuous and
repetitive along strike, increasing confidence in the scale of the system

·      Multiple untested high-grade targets along the 20km Yarrol Fault
and at the Monal and Mt Steadman licences, several with historical resources
and surrounded by satellite targets

·      The opportunity to prioritise drill programmes that can deliver
less risk and more capital efficient returns

 

The Company is now integrating the detailed structural and geochemical data
from this programme with its extensive shallow RC drilling, geophysical
surveys, and historical data to refine its geological model. This work will
inform any future deeper drilling campaigns and ensure they are appropriately
targeted.

 

Next Steps

Mila is now focusing its capital and technical resources on the following
priorities:

·      Q1 RC drilling programme: Fully funded programme ready to
commence, targeting resource growth along the Yarrol Fault. Future targets at
Monal and Mt Steadman are also being considered, where historical intercepts
and non-compliant resources offer strong exploration upside

·      Geological modelling: Integrating the diamond drill dataset with
RC drilling and geophysical data to better understand structural controls and
gold distribution, including potential plunging high-grade shoots

·      Project ranking: Applying a disciplined capital allocation
framework to prioritise targets offering the highest risk-adjusted returns
across the Company's portfolio

 

Technical Background

Diamond drilling was selected to obtain oriented core samples, enabling the
team to assess structural controls on mineralisation, including vein
orientation, faulting, and lithological boundaries, critical factors in
understanding gold distribution that cannot be determined from RC drilling
alone.

 

The programme tested extensions of mineralisation outside the historical
resource areas. While diamond core provides unparalleled geological insight,
the narrower sample volume can introduce greater variability in grade for a
structurally complex, nuggety gold system compared to the larger sample
volumes collected during RC drilling.

 

Three geological interpretations are being evaluated:

1.    Natural zonation: Higher grades may be concentrated in the upper
portions of the hydrothermal system, with lower grades at depth reflecting
vertical geochemical gradients

2.    Structural complexity: High-grade gold shoots may plunge or repeat
along strike rather than continuing uniformly down-dip, supporting the
potential for multiple discrete high-value targets across the system

3.    Sampling methodology: The transition from high-density, large-volume
RC sampling in shallow areas to lower-density, narrow diamond core at depth
may be affecting the representativeness of assays in a nuggety mineralised
environment

 

The data generated from this programme significantly enhances the Company's
geological understanding and will directly inform future targeting, capital
allocation and drill design.

 

 

**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 Partners LLP
 Susie Geliher / Will Turner       +44 (0) 20 7236 1177 

 St Brides Partners Limited 

 

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