(Alliance News) - Mila Resources PLC on Tuesday said it continues to make progress towards commercialisation at Kathleen Valley after receiving encouraging results from the deepest holes drilled there to date.
The Kathleen Valley exploration site is located in the Wiluna-Norseman gold belt of Western Australia, a recognised tier-one mining jurisdiction home to several mining operations, including the adjacent high-grade Bellevue gold project.
The company said that the two deepest holes drilled so far as part of its ongoing 13,500-metre program had reached depths of 450 metres, and revealed three additional sheared zones either side of the main mineralised Coffey shear zone.
Up to this point, drilling at the Coffey mineralisation only extended to a maximum depth of around 400 metres.
Mila Resources said drill hole KVDD0037 was the most successful, drilled to a depth of 448.2 metres and intersecting multiple zones consistent with the Coffey mineralisation.
The hole intersected a broad area comprising 4 sheared zones over an apparent 87-metre wide down hole length.
Mila Resources argued that if each zone was mineralised with gold-silver, it would be a significant breakthrough in the development of mineralisation at the Coffey Deposit.
The company will consider a resource upgrade following assay results of the stage-two drilling campaign, which could enhance Kathleen Valley's current resource in both grade and tonnage.
"These visual results are very encouraging and seeing continuity of the ore body and the system opening at depth puts us in a very confident position moving forward", said Executive Chair Mark Stephenson.
"Having recently raised GBP696,000 we will look at conducting parallel work streams to complement the drilling campaign, including detailed structural geological review and first phase metallurgical work to progress Coffey towards commercialisation."
Mila raise the money earlier this month, placing 23.2 million new shares at 3.00 pence each.
Mila Resources shares were trading 6.4% higher at 2.98p in London on Tuesday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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Mila Resources (MILA)