Mila Resources PLC (LSE:MILA) has roughly doubled the gold resource at its Coffey deposit in Western Australia, lifting the Inferred JORC estimate to 41,300 ounces as it reviews options for the wider Kathleen Valley project.
The upgraded resource comprises 599,000 tonnes grading 2.1 grams per tonne gold at a 0.5g/t cut-off, compared with the November 2020 estimate of 327,000 tonnes at 2.0g/t for 21,000 ounces.
The latest estimate, effective 31 July, is based on 44 drill holes totalling 8,914 metres. Additional modelling returned grades of 4.6g/t silver and 0.71% zinc, although these elements are not included in the reportable JORC resource pending metallurgical testing.
Executive director Mark Stephenson said: “Doubling the Mineral Resource at the Coffey Gold Deposit is a significant achievement.”
"While the majority of Mila's work is now focused on our Queensland portfolio, this resource upgrade underpins the underlying value of our Kathleen Valley Project and highlights the development opportunity that exists."
Mila believes mineralisation could extend below and beyond the existing envelope, while two further gold targets, Sturrock and Powell, remain untested.
He added: "Our belief is that the mineralising system at Coffey extends below and beyond the current resource envelope with potential to extend onto neighbouring properties, with the resource being part of a much larger and undefined system.
"In addition to this, there are additional gold targets that remain untested, providing further upside."
Mila holds a 30% interest in Kathleen Valley, with an option to increase that to 80%. The company is undertaking a strategic review of the project's future development while concentrating most of its current work on its Queensland gold and copper portfolio.
