Mila Resources PLC (LSE:MILA) said it is continuing to evaluate the geological data from Kathleen Valley in Western Australia and refining its exploration model.
Having raised £696,000 last October and £212,000 in November, interim results published today showed the company had cash and cash equivalents of £832,275 at the end of December 2022, having cut losses to £205,404 from £760,806 a year ago.
Following encouraging Phase 1 exploration and drilling but a Phase 2 that did not meet expectations, executive chairman Mark Stephenson said the company is “spending the funds prudently and do not believe it appropriate to continue drilling without mitigating as much exploration risk as possible.
“Once we have worked through the options and the budget available to us, Mila will update the market with its next programme at the project," he said.
“Whilst we are moving slower than anticipated, we are also mindful that equity markets are currently difficult for junior explorers and accessing capital for expensive drilling programmes cannot be taken for granted.”
Mila re-listed on the London Stock Exchange in November 2021 following the acquisition of 30% of Kathleen Valley with the option to acquire an additional 50% interest in two further tranches.
Stevenson noted that Kathleen Valley is surrounded by a number of mining success stories, including Liontown Resources (ASX:LTR), which is developing a lithium project scheduled for production in 2024 (2km to the north), gold producing Wiluna Mining (~60km to the north), BHP's Mount Keith nickel mine (~20km to the north), and Kathleen Valley Gold (to the north), which extracted 65,900 oz gold over an 18-month period.