The Mila Resources PLC share price on Tuesday reacted aggressively to the news of lower-than-expected grades amidst its results from maiden diamond drilling programme at the Yarrol Gold Project, in Queensland, Australia.
The company did, however, tell investors that drilling demonstrated continuity of gold-bearing structures, with intercepts of about 5 g/t gold traced from surface to about 230 metres depth, and it confirmed grades of up to 6.8 g/t gold at depth.
Higher-grades were less consistent at depth than in shallow zones, however, it noted.
“The recent diamond drilling programme has given us highly valuable information regarding the continuity of our gold system at depth which will help us understand structures controlling gold mineralisation, and provide the data needed to make informed decisions about our next exploration programme," said managing director Mark Stephenson.
He added: “The grades were lower than anticipated, albeit they confirmed that gold structures extend well below surface, with grades of 5 g/t still present at depth; an important validation of the system's scale.”
Mila added that it is now shifting near-term focus to shallow targets along strike across the Yarrol, Monal and Mt Steadman licences, with a fully funded reverse-circulation drilling programme scheduled to begin later in Q1.
In London, meanwhile, Mila shares were down 30%, changing hands at 1.05p.