(Alliance News) - Mila Resources PLC on Wednesday said good progress was being made with Liontown Resources Ltd regarding arrangements to enter into a joint venture at the company's Kathleen Valley gold project in Western Australia.
The gold exploration firm said work is now well underway with Liontown to source water and secure heritage survey clearances ahead of exploration work, including soil sampling and trenching at target areas.
This is with a view to securing future water supply for its forthcoming mining operations at its Kathleen Valley lithium mine, due to commence production in mid-2024.
Mila said Liontown has identified several lithium targets in the northern and central areas of the project, which coincide with the gold target areas previously identified by Mila.
Mila and Liontown are working jointly on conducting Heritage Surveys across these areas.
Under the joint venture, Mila will be able to access and conduct gold and base metal test work from the drilling core provided by Liontown drill programme.
It expects that this will significantly reduce the overall cost and timeframe of Mila's exploration activities within the coincident areas.
Liontown is also planning extensive low impact soil geochemistry and surface geophysical surveys over the project and is in discussions with The Tjiwarl Aboriginal Corp, the traditional landowners, to ensure that it avoids any sensitive heritage areas.
Mila said recent assays from the six-hole reverse circulation programme completed in late June 2023 for 820 metres of uncovered critical structural features and supergene mineralisation that provides further indications of the project's mineralisation potential width.
Shares in Mila Resources fell 1.3% to 0.81 pence in London on Wednesday.
By Jeremy Cutler, Alliance News reporter
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Mila Resources (MILA)