Mila Resources Plc (LON: MILA) has announced a significant upgrade to the JORC Mineral Resource Estimate at its Coffey Gold Deposit within the Kathleen Valley Project in Western Australia.
The updated Inferred Mineral Resource stands at 599,000 tonnes grading 2.1g/t gold for 41,300 ounces, using a 0.5g/t gold cut-off.
That represents an approximate doubling of both tonnes and contained gold compared with the previous 2020 estimate of 327,000 tonnes at 2.0g/t for 21,000 ounces.
At the higher 1.0g/t cut-off, Coffey contains 509,000 tonnes at 2.4g/t gold for 39,300 ounces, meaning the majority of the resource’s contained gold is retained at the higher cut-off.
The new estimate incorporates 44 drill holes totalling 8,914 metres, compared with just 12 RC holes used for the previous resource.
Mila believes there is considerable potential to expand Coffey beyond the existing resource envelope. The mineralised system remains open, while the wider Kathleen Valley Project contains two additional untested gold targets, Sturrock and Powell.
The company also highlighted silver and zinc within the Coffey mineralisation. Estimates at the 0.5g/t gold cut-off include 4.6g/t silver and 0.71% zinc, although these elements are not currently included in the JORC-reportable resource pending metallurgical work.
Kathleen Valley sits within Western Australia’s prolific Wiluna-Norseman Belt, adjacent to the high-grade Bellevue Gold Project. Mila currently holds rights to 30% of Kathleen Valley with an option to increase its interest to 80%.
Executive Director Mark Stephenson said the resource upgrade reinforces the underlying value of Kathleen Valley despite Mila’s current operational focus being predominantly on its Queensland portfolio.
The board is conducting a strategic review to determine the best route to realise value from Kathleen Valley while continuing to advance its Queensland assets.
