Mila Resources said drilling at the Coffey deposit on its Kathleen Valley gold project in Western Australia has extended the areas of mineralisation with every hole so far hitting its target zone.
Eleven holes have been completed so far, with the last two also intersecting a deeper sulphide zone below the main target and 285m below the surface.
Potential gold, silver, zinc and copper sulphide mineralisation has been intersected over an area more than 200m long by 220m down-dip which is open along strike and down dip at depth, added the statement.
Neil Hutchison, Mila’s chief geologist, said: "We have had remarkable success with our maiden diamond core drilling campaign at Coffey.
Every hole has hit the target zone within metres of the predicted depth as the system is so planar and consistent.
In addition, the widths and quartz-sulphide zones intersected in the drilling are visually far better than we expected.
This is very unusual for a gold deposit and the geologists in the field continue to get excited as each and every hole is delivered.
Mark Stephenson, an executive director, added: "It is rare to find such consistently positive results from early-stage drilling but that is exactly what we have achieved here at our Kathleen Valley Gold Project.
“The Coffey deposit has all of the hallmarks of a very significant find.”