Mila Resources Regulatory News (MILA)

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**

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