Mila Resources release drilling results for Kathleen Valley Gold project

The two deepest holes so far drilled at Coffey (KVDD0036 and KVDD0037) have intersected the down dip extension of the mineralised Coffey shear zone and encountered three additional sheared zones either side of the main shear zone over an apparent 87 m wide length at around 339 – 426 m. This is in addition to the zone encountered from drilling to 300 m (hole KVDD0035) which intersected a 10 m wide zone (from 256.3 - 266.5 m).

Overview

• Drilling to date has extended the Coffey mineralisation continuously down dip for around 400 m and is still open at depth as well as demonstrating the potential for multiple lodes to be developed at depth as previously modelled.
• Drill hole KVDD0036 was drilled to a depth of 348.9 m and was stepped out 100 m further down dip from KVDD0035, intersecting around 9 m of similar alteration bearing sulfide mineralisation and quartz veining (from 316 – 325 m) as well as a narrow massive sulfide vein from 346.5 - 346.6 m near the end of the hole.
• Drill hole KVDD0037 was the most successful hole drilled to a depth of 448.2 m, intersecting multiple zones consistent with the Coffey mineralisation as well as the additional three shear zones 40 m north of KVDD0036 and 110 m down dip from KVDD0034 on the same section.
• Significantly, KVDD0037 intersected a broad zone comprising four sheared zones over an apparent 87 m wide down hole length (around 339 – 426 m) which, if each zone is mineralised with gold-silver, would be a significant breakthrough in the development of the mineralisation at the Coffey deposit.

Operations Update

• Drill hole KVDD0038 is progressing and testing the mineralisation 60 m north of KVDD0037 and 80 m down dip of KVRD0030 on the northern-most drill line.
• The core from KVDD0035, KVDD0036 and KVDD0037 has been cut and received by an independent laboratory in Perth ready for assaying.
• Following assay results of stage two drilling campaign, the team will look at a resource upgrade with the potential to significantly enhance Kathleen Valley’s current JORC compliant resource for both grade and tonnage.

Neil Hutchison, Technical Director of Mila commented:

“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 110 m away from our previous drilling, with KVDD0037 encountering multiple zones of alteration, sulfide mineralisation, brecciation and extensive quartz veining. All of these features are consistent with the gold-silver bearing zones already assayed and carrying significant mineralisation higher up in the system.”

“Mila’s geologists started seeing the signs of additional lodes in the previous drilling and geological modelling supported this concept. Hole KVDD0037 is the first real test of the concept and has delivered four structurally deformed zones which could all be potentially mineralised, within a broad area extending over an apparent width of 87 m. We remain extremely excited about the potential for Coffey deposit to grow significantly in size as we await our assay results and begin building our JORC resource model.”

Mark Stephenson, Executive Chairman of Mila commented:

“These visual results are very encouraging and seeing continuity of the ore body and the system opening at depth puts us in a very confident position moving forward. Following the completion of stage two step out holes and the return of the lab assay results, the team will look at taking the opportunity to make a substantial upgrade to the current JORC resource.

“Having recently raised £696 000 we will look at conducting parallel work streams to complement the drilling campaign, including detailed structural geological review and first phase metallurgical work to progress Coffey towards commercialisation.

“I am also particularly impressed with our ground team, who have developed a strong relationship with the traditional landowners through communication and operating responsibly, as well as having developed the knowledge and confidence to take a broad step out during this stage two drilling campaign. This work has allowed us to get onto the ground quickly and effectively, accelerating our development strategy dramatically. Both factors are key to the development of the Kathleen Valley Project which we will look at building upon in the future.”

Read the article online at: https://www.globalminingreview.com/mining/18102022/mila-resources-release-drilling-results-for-kathleen-valley-gold-project/