Mila Resources announces Kathleen Valley Gold assay results

Highlights

• Assays for first five of the 11 diamond core holes have been received, delivering exceptional results.
• KVRD026: 6.6 m at 14.86 g/t gold (Au) and 21.79 g/t silver (Ag) from 209.4 m, including:
  • 5 m at 18.94 g/t Au and 28.08 g/t Ag from 210 m, which includes:
    • 1 m at 27.6 g/t Au and 47.5 g/t Ag from 211 m, the highest grades returned to date.
• KVRD025: 5 m at 4.26 g/t Au and 13.35 g/t Ag from 198 m, including:
  • 3 m at 6.9 g/t Au amd 21.62 g/t Ag from 200 m, which includes a high-grade zone comprising:
    • 1 m at 13.45 g/t Au and 37.7 g/t Ag from 202 m.
• KVRD027: 10 m at 1.11 g/t Au at 4.35 g/t Ag from 205 m, including:
  • 6 m at 2.26 g/t Au and 7.03 g/t Ag from 219 m, which includes a high-grade zone comprising:
    • 1 m at 4.49 g/t Au and 18.4 g/t Ag from 224 m.
• 1 m re-spilts of anomalous 4 m composite samples from the 2021 RC drilling have been received, extending mineralisation in several holes with a best result of:
  • KVRC016: 11 m at 2.19 g/t Au from 94 m, including:
    • 1 m at 14.73 g/t Au and 2.43 g/t Ag from 104 m.
• Mila has completed 22 reverse circulation (RC) and diamond drill holes for 4509 m during Stage 1 of the drilling campaign.
• Drilling has now defined mineralisation over a zone 200 m long and 220 m down dip, which is open at depth and along strike.
• Heritage Surveys ahead of line clearing and drill pad works are set to commence in preparation for Stages 2 & 3 which will comprise ~6550 m of drilling.
• Stage 2 programme will step out and target new gold lode at depth.
• This paves the way for Mila to increase its interest in the Kathleen Valley Project to 55% ownership.
• Assay results for the diamond core holes KVRD029-KVRD032 are still outstanding, with holes KVDD033 & KVDD034 being cut and en route to the laboratory.

Neil Hutchison, Chief Geologist of Mila Resources, commented: “The assay results from the first five diamond core holes have surpassed my expectations. We knew the core would deliver strong results based on the visual observations of the sulgide mineralisation and the Bellevue-Style veins we had intersected. In addition, we received great results from the RC drilling assays indicating the potential of this mineralised system, but to intersect 6.6 m at almost 15 g Au gold and 22 g Ag is remarkable. This zone includes 1 m at 27.6 g Au gold and 47.5 g Ag, which is the highest assay result we have received back from all of the drilling at Coffey to date.

“This deposit is really starting to take shape and from the observations in the recently completed drill holes, it only gets better. It's a massive achievement by the onsite personnel from Geolithic, DrillCore and PetriCore, who have all delivered such high-quality work over a short three-month period. We are all excited to commence with the Stage 2 & 3 drilling campaigns, which will chase this highly mineralised system at depth and along strike. These next stages of drilling will potentially further expand the mineralisation, growing the deposit in size and grade.”

Varying gold-silver bearing sulphide and quartz vein textures in the high-grade zone of KVRD026 which returned 6.6 m at 14.86 g/t Au and 21.79 g/t Ag, including 1 m at 27.6 g/t Au and 47.5 g/t Ag. These are the highest grades returned to date from the Coffey mineralised system..

Mark Stephenson added: “This is a truly stunning result from the Coffey Deposit, one of our targets at our Kathleen Valley Gold Project, which is shaping up to be a very significant discovery indeed. Importantly, these assays have demonstrated commercial grades over mineable widths which gives the team a huge amount of confidence as we continue work with the objective of laying the foundations for a new mining operation at Kathleen Valley. It is also important to note the potential silver credits highlighted in today's assays which provide Mila with additional optionality over processing routes given the further economic advantage of silver as a co-product. We are also highly encouraged by the emergence of another gold lode underneath the main zone at depth and we will target this lode with the next drilling programme.

“We eagerly await the remaining assays from the laboratory, and we continue to plan for the second and third phases of our 2022 drilling campaign which we firmly believe will support a significantly enhanced JORC Resource, in terms of both quantum and grade. I have frequently referred to the current resource as simply the tip of the iceberg and today's assays underscore that assertion – it is certainly a very exciting time for Mila and I look forward to sharing more news in due course.”

Read the article online at: https://www.globalminingreview.com/exploration-development/05052022/mila-resources-announces-kathleen-valley-gold-assay-results/