Mila Resources PLC (LSE:MILA) said gold mineralisation was intersected by the first hole drilled at the Kathleen Valley gold project in Western Australia.
The drill hole intersected about 7.35 metres (m) of sulphide mineralisation from a depth of 178.1m.
"We had a high level of confidence as we went into this drilling campaign, and initial results are supporting this belief that the initial resource declared at Kathleen Valley was simply the tip of the iceberg,” said executive director Mark Stephenson.
“Reporting an intersection of over 7m of sulphide mineralisation from our first hole is a fantastic result, and we hope a positive indicator for the rest of our campaign as we look to demonstrate the wider resource potential of Kathleen Valley over the coming weeks as we wait for this, and additional holes, to be assayed."
The drilling programme is seeking to build on the existing JORC-inferred resource estimate and unlock the full potential of the project.
READ: Mila Resources wowed by first drill results at Kathleen Valley