Mila Resources PLC (LSE:MILA) announced further positive assay results from Stage 1 drilling at the Coffey deposit, the flagship target at the Kathleen Valley gold project in Western Australia.
"The assays continue to deliver excellent results with consistent high-grades and thick intersections being returned from the diamond core drilling,” said chief geologist Neil Hutchison.
“The assays have now confirmed the visual observations and have demonstrated that the mineralised horizon at the Coffey deposit is well and truly open and that it has all the right ingredients to become a substantial sized mineralised system."
Highlights from six holes included: 8.0 metres (m) at grades of 3.22 grammes a tonne (g/t) gold, 7.36 g/t silver and 3.11% zinc, including 3.0m at 5.38 g/t gold, 10.69 g/t silver and 3.88% zinc which itself included a 1m intersection with grades of 13.95 g/t gold and 18.70 g/t silver.
Assay results from other holes included 8.0m at 2.91 g/t gold and 6.61 g/t silver; and 3.65m at 2.31 g/t gold and 2.48 g/t silver, including 1.0m at 7.28 g/t gold.
Mila has completed Stage 1 of its drilling campaign and defined mineralisation over a zone 200m long, 220m down dip and ranging from 2m to 10m in true thickness.
The Tjiwarl Aboriginal Corp (Traditional Land Owners) have completed Heritage and Environmental surveys at Kathleen Valley, with a large area surrounding the Coffey deposit now cleared to progress the next stages of drilling.
"Armed with some very impressive results from our Stage 1 drilling, Mila will shortly be embarking on our fully funded Stage 2 and Stage 3 campaigns with the knowledge that the Coffey deposit bears all of the geological signatures of a major new mineralised system,” said executive director Mark Stephenson.
“These latest results, which in isolation boast some very encouraging intersections, are now being assessed alongside our full suite of results from this programme and will inform a very targeted campaign combining both deeper diamond core drilling and shallower RC [reverse circulation] drilling following the strike, as we look to reveal the true resource potential of this asset."