An updated JORC estimate nearly doubles the inferred gold resource at the explorer's Western Australian Coffey deposit, lifting shares on the day.
Mila Resources (AIM: MILA) saw its shares rise 6% after the company revealed that an updated resource estimate has almost doubled the gold ounces contained at its Coffey deposit in Western Australia, part of the wider Kathleen Valley project.
The new JORC-compliant inferred mineral resource now stands at 41,300 ounces of contained gold, up from the 21,000 ounces reported back in 2020, with the upgrade built on 44 drill holes totalling close to 9,000 metres. Investors welcomed the sharply larger inventory, sending the stock higher as the market digested the scale of the increase.
The Coffey deposit sits alongside two other gold targets within Kathleen Valley, a project positioned in the Wiluna-Norseman belt next door to the high-grade Bellevue gold operation. Alongside gold, the updated drilling also picked up silver and zinc mineralisation within the deposit, adding further optionality to the resource base.
Mila believes the mineralised system may run beyond the current resource boundary, potentially extending onto adjacent tenements, and has flagged two additional untested targets plus lithium-bearing pegmatites elsewhere across Kathleen Valley as further avenues for exploration.
The upgrade lands as Mila works through a strategic review of how best to advance Kathleen Valley, meaning the market will now be watching for details on development options, further drilling plans, and any read-across from the pegmatite and untested target work in the months ahead. As an inferred resource, the estimate carries the lowest level of geological confidence, so further drilling would be needed to upgrade it to a higher category.
This report is based on Mila Resources’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: MiningWatch Portugal on Unsplash.
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