Mila Resources PLC (LSE:MILA) has announced the discovery of three sheared zones, where rocks appear to be under pressure and stress, in an update on its Kathleen Valley project and the Coffey Deposit in Western Australia.
The features discovered are “consistent with the gold-silver bearing zones already assayed and carrying significant mineralisation higher up in the system," said Neil Hutchinson, technical director of the junior.
Hole KVDD0037 provided the most success, according to Mila, being drilled to a depth of 448.2m and revealing the three shear zones.
An independent laboratory in Perth is currently testing its core, as well as those from holes 35 and 36.
Having now found four shear zones connected to hole 37, Mila highlighted that if each were mineralised with gold-silver it would be a “significant breakthrough” at the Coffey Deposit.
It added that another hole, 38, is progressing and testing mineralisation north of 37.
Following the assay results, Mila says Kathleen Valley’s JORC-compliant resources will likely be revised, both in terms of grade and tonnage.
Hutchinson said: "Hole KVDD0037 has the potential to be a game changer for us and to significantly increase our JORC resource.
"Due to the continuation and predictability of the mineralised Coffey Shear Zone, we were sufficiently confident to undertake large step-outs with the aim of rapidly increasing the potential of the project.”
“This has paid off, as we intersected the Coffey Shear at its projected position 100 and 110m away from our previous drilling, with KVDD0037 encountering multiple zones of alteration, sulphide mineralisation, brecciation and extensive quartz veining.”
Mila Resources shares rose 7% to 3p.