Mila Resources PLC's (LSE:MILA) executive chairman Mark Stephenson talks Proactive through why it has taken an option on three new gold exploration licences in Queensland
Proactive: What led to this decision to expand?
Mark Stephenson: Mila Resources was set up to look for deals like this from the start. Over the last couple of years, we’ve been very active in Kathleen Valley, Western Australia. We were fortunate to secure a deal with Liontown, a major lithium producer, where they are taking responsibility for the heritage surveys and exploration work for us on the project.
Proactive: That partnership with Liontown must have been a catalyst. Could you tell us more about what attracted you to these new projects?
Mark Stephenson: Certainly. We've recently brought on Alastair Goodship, who spent the past six months reviewing projects, and we’ve done a lot of groundwork.
This particular project is outstanding; it's located in a geological zone that aligns well with our existing assets, and it’s in a safe jurisdiction where we have expertise.
Proactive: Was it just the location that excited your team, or were there other factors that made this project the one to add to the portfolio?
Mark Stephenson: Location was a factor, but this project’s history and high-grade deposits were key.
It’s a historical site with prior mining, and recent drilling has shown significant gold grades, like six meters at 8.54g per tonne and another with 40 meters at 2.8g.
The drilling to date has spanned a two-kilometre area, with shallow drilling over four kilometres on a 20-kilometre strike. We’re optimistic about what more modern techniques and further analysis can reveal.
Proactive: Regarding the project’s financials, the initial cash payment was relatively low at $25,000. Could you explain how the economics work?
Mark Stephenson: Yes, we have a fantastic partner in EMX, who’s already done some initial drilling.
With an additional option payment of A$450,000, which will go directly into ground exploration, it’s an excellent opportunity for us. So really, it's costing us little to engage in this project.
Proactive: And with Kathleen Valley moving forward, what can investors expect in the coming weeks?
Mark Stephenson: Another reason we were interested in this new project is its alignment with Liontown, which recently started production and is collaborating closely with the Tjiwarl family office.
They’re conducting detailed heritage work, ensuring respect for First Nations. This cautious approach means that, once we make discoveries, the path to production is solid.
Proactive: It sounds like Mila Resources is well-positioned among strong industry players.
Mark Stephenson: Absolutely. Alongside substantial producers in the area, like Mt Radom, Krakow, and Mount Morgan, we’re also positioned between Bellevue for gold to the south and Liontown to the north.