Mila Resources shares climbed higher on Wednesday as it reported another possible thick gold intersection at its Kathleen Valley project in Western Australia.
The company said a 10 metres (m) wide zone of sulphide bearing alteration between 256.3m-266.5m was visually consistent with the previously reported mineralised gold-silver-zinc bearing zone at the Coffey Deposit.
A 5.63m wide heavily mineralised core zone occurs in the centre of the alteration zone, it added.
The drilling is part of an ongoing 13,500m programme with core samples currently being cut, sampled and sent to a laboratory in Perth for assay analysis.
In a statement, Mark Stephenson, Mila’s executive chairman, commented: "Today's results underpin our findings to date and demonstrate consistently encouraging intersections with commercial grades and widths.
“We have the confidence to say that we are still on track with our objective significantly to enhance the initial JORC Resource at Kathleen Valley, and that these latest results have justified our strategy to step out to the next hole with the intention of expanding our mineralised footprint."
"We remain extremely excited about the potential for Kathleen Valley, and our most advanced Coffey target, as we look to build a sizeable JORC inventory over the coming months," Stephenson concluded.
Mila shares rose 8% to 3.25p in late afternoon trading.