Positive Assay Results from Coffey Deposit

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

29 June 2022

Mila Resources Plc

('Mila' or the 'Company')

Positive Assay Results Returned from Stage 1 Drilling at Coffey Deposit, Kathleen Valley

Mila Resources, the post-discovery gold exploration accelerator, is pleased to announce that further positive assay results have been received from Stage 1 drilling at the Coffey Deposit, the flagship target at the Kathleen Valley Gold Project in Western Australia ("Kathleen Valley" or the "Project").

The objective of the drill programme is to build on the existing JORC Inferred Resource and unlock the full potential of the project, which is located in a region which hosts some of the largest gold projects in Australia and which is adjacent to Bellevue Gold's discoveries.

Figures and Tables referred to in this release can be viewed in the PDF version available via this link: 
http://www.rns-pdf.londonstockexchange.com/rns/5284Q_1-2022-6-28.pdf

Highlights

·    Assays for the final six holes of the 11 diamond core holes drilled have now been received (Table 1)

·    The laboratory assays have continued to deliver excellent results cementing Mila's success drilling the Coffey Au-Ag-Zn Deposit (Tables 1 & 2)

·    Highlights from the new results include the following intersections:

·    KVRD0032 - 8.0m @ 3.22 g/t Au, 7.36 g/t Ag & 3.11% Zn from 178.0m including:

§ 2.0m @ 4.38 g/t Au, 7.60 g/t Ag & 1.31% Zn from 178.0m and:

§ 3.0m @ 5.38 g/t Au, 10.69 g/t Ag & 3.88% Zn from 182.0m which includes:

·    1m @ 13.95 g/t Au & 18.70 g/t Ag from 184.0m

·    KVDD0033 - 8.0m @ 2.91 g/t Au & 6.61 g/t Ag from 208.0m including:

§ 3.0m @ 5.79 g/t Au & 7.40 g/t Ag from 209.0m

·    KVRD0031 - 3.65m @ 2.31 g/t Au & 2.48 g/t Ag from 176.35m including:

§ 1.0m @ 7.28 g/t Au & 1.90 g/t Ag from 179.0m

·    KVDD0034 - 0.62m @ 3.37 g/t Au & 3.40 g/t Ag from 235.38m

·    Mila has completed 22 reverse circulation (RC) & diamond drill holes for 4,509m during Stage 1 of the drilling campaign (Table 3)

·    Drilling has now defined mineralisation over a zone 200m long, 220m down dip and ranging from 2m to 10m in true thickness

·    The mineralised system is open at depth and along strike as well as showing signs of additional mineralised lodes potentially developing from a structurally controlled deep feeder root zone

·    Heritage & Environment Surveys completed and cleared to proceed with the fully funded Stages 2 & 3 drilling at the Coffey Deposit

Neil Hutchison, Chief Geologist of Mila Resources, commented:

"The assays continue to deliver excellent results with consistent high-grades and thick intersections being returned from the diamond core drilling.  Our geologists in the field had shared spectacular images (below) of massive-sulphide intersections and Bellevue style veins within the modelled ore zone positions which looked similar to the previously reported high-grade intersections.  The assays have now confirmed the visual observations and have demonstrated that the mineralised horizon at the Coffey Deposit is well and truly open and that it has all the right ingredients to become a substantial sized mineralised system."

Mark Stephenson commented:

"Armed with some very impressive results from our Stage 1 drilling, Mila will shortly be embarking on our fully funded Stage 2 and Stage 3 campaigns with the knowledge that the Coffey Deposit bears all of the geological signatures of a major new mineralised system.  These latest results, which in isolation boast some very encouraging intersections, are now being assessed alongside our full suite of results from this programme and will inform a very targeted campaign combining both deeper diamond core drilling and shallower RC drilling following the strike, as we look to reveal the true resource potential of this asset."

Stage 1 Drilling Programme Overview

The assay results for the remaining six of the 11 completed diamond drill holes from the Stage 1 drilling (Table 1 and Appendix 1) have now all been received from the laboratory.  The laboratory assays have continued to deliver excellent results with consistent high-grades and thick intersections supporting the previously announced results[1] (Table 2).  With the full set of assays from the diamond core and RC drilling now in hand, the results have cemented Mila's drilling success at the Coffey Au-Ag-Zn Deposit, the flagship of the Company's Kathleen Valley Project. 

The drilling at the Coffey Deposit has improved in grade and continuity, down dip of the original pre-Mila resource zone.  Mila's drilling has substantially extended mineralisation, which is now defined over a zone of at least 200m long and 220m down dip, with the mineralisation ranging from 2m to 10m in true thickness (See Drill Collar Plan and Cross Section attached).  The mineralisation is open at depth and along strike, with promising signs of additional mineralised lodes developing underneath the main zone at depth (see Cross Section), similar to the stacked lodes developed at the adjoining Bellevue Gold system to the south as well as other nearby gold mining operations.  It is common for gold systems to have multiple lodes and form stacked "ladder" systems emanating from a structurally controlled deep feeder root zone.  Coffey is now beginning to demonstrate these traits and Mila's geologists will seek to identify and sample these zones as the drilling tests deeper.  The higher grades, wider intersections and multiple lodes (Tables 1 & 2) have the potential to add significant grade, tonnage and higher-grade ounces to the Coffey Deposit once Mila completes a new resource estimate at the end of the Stage 2 & 3 drilling campaigns.

Heritage Survey

The Tjiwarl Aboriginal Corporation (Traditional Land Owners) have completed Heritage and Environmental surveys at Kathleen Valley, with a large area surrounding the Coffey Deposit now cleared to progress the next stages of drilling.  Mila has completed rehabilitation of the finished RC and diamond drill sites and these will be reseeded with native plant species by the Tjiwarl 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 the land clearing of the planned drill sites to ensure minimum land damage and flora impacts are minimised as much as practically possible.  The Company is awaiting the final sign off on the Program of Works (POW) approvals from the Department of Mines, Industry, Regulation and Safety (DMIRS) to progress with the drilling works following the Heritage and Environmental approvals.  Once the POW approvals are received, site works can commence in preparation for the start of Stages 2 & 3 drilling as soon as it is received.

Stage 2 and 3 Drilling

Mila has now completed a total of 22 RC & diamond drill holes for 4,509m during Stage 1 of the drilling campaign (Table 3).  Stages 2 & 3 drilling which will comprise a combination of deeper diamond core drilling and shallower along striking RC drilling as well as precollars for the diamond drilling.

Table 1: Significant Intersections from Final Diamond Core Drilling at the Coffey Deposit.

Table 2: Previously Reported Significant Intersections from Drilling at the Coffey Deposit.

Table 3: Drillhole collar details (Completed by Mila)

*Initial 12 RC holes KVRC001-KVRC012 were drilled by Trans Pacific Energy Group during 2019-2020

Competent Person Statement

The information in this announcement relating to Exploration Results is based on information compiled by Neil Hutchison, who is a Technical Director of Mila Resources, and a member of The Australasian Institute of Geoscientists. Mr Hutchison has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves". 

Mr Hutchison consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

**ENDS**

For more information visit www.milaresources.com or contact:

Appendix 1: Complete assay intervals of mineralised zones with Significant Intersection Calculations and high-grade assays highlighted.