Mila Resources PLC (LSE:MILA) confirmed its stage two drilling programme at the Kathleen Valley Gold Project in Western Australia is set to start as part of its ongoing 13,500-metre (m) programme.
“This follows the success of stage 1, which delivered excellent results at the flagship Coffey Deposit, defining mineralisation over a zone 200m long, 220m down dip and ranging from 2m to 10m in true thickness, with results including 6.6m at almost 15 grams gold and 22 grams silver,” the post-discovery gold exploration accelerator said in a statement.
Stage two will focus solely on Coffey, as it seeks to build a significant commercial resource at the project, which is located in a region that hosts some of the largest gold projects in Australia.
Regulatory Programme of Work approvals, which are valid for four years and permit the drilling of 30 diamond core holes and 60 reverse circulation (RC) drill holes, were received from the Department of Mines, Industry, Regulation & Safety.
Drilling is anticipated to step back and be deeper under the Coffey mineralisation, to vertical depths of 300m-350m.
Mark Stephenson, Mila executive chairman, commented: “Given the excellent results of our stage one drill campaign, which returned the highest assays received to date and defined a sizeable mineralised zone, we are excited to get to work with our stage two programme.
“Coffey is proving to be a standout deposit, with all the geological signatures of a major new mineralised system, and our focus is now to test the extent of this system by targeting the deeper high-grade zone.”
Shares fell 3.84% to 3.51p in morning trade.