Mila Resources (LSE:MILA) has announced a significant increase in the JORC-compliant Mineral Resource Estimate for the Coffey Gold Deposit at its Kathleen Valley Gold Project in Western Australia.
The updated Inferred Mineral Resource contains 599,000 tonnes grading 2.1 grams per tonne of gold for approximately 41,300 ounces of contained gold. Compared with the previous 2020 estimate, both tonnage and contained gold have roughly doubled following additional drilling across the deposit.
The revised resource also contains notable silver and zinc grades, adding further potential value to the mineralised system at Coffey.
Updated estimate strengthens Kathleen Valley potential
The expanded resource provides additional support for the development potential of both the Coffey deposit and Mila’s wider Kathleen Valley position within Western Australia’s Wiluna-Norseman Belt.
Exploration upside remains beyond the currently defined resource, with several gold targets yet to be fully tested. The project area also contains mapped lithium-bearing pegmatites, providing another potential exploration opportunity alongside its established precious and base metal mineralisation.
There is also scope for the mineralised system to extend towards neighbouring properties, offering the possibility of further resource growth if geological continuity can be demonstrated through future exploration.
Strategic review to assess options for Kathleen Valley
Following the resource upgrade, Mila is undertaking a strategic review to determine the most effective way to generate value from its Kathleen Valley interest.
The company currently holds rights to 30% of the project and has an option that could increase its ownership to 80%. The review comes as Mila simultaneously advances its portfolio of exploration assets in Queensland.
While the Coffey resource increase represents an important project milestone, Mila’s broader outlook remains constrained by its financial position. The company currently generates no revenue and continues to record losses and negative free cash flow.
Share-price technical indicators also remain under pressure, with the stock trading below major moving averages and MACD remaining negative. Conventional valuation measures provide limited support while earnings are negative and no dividend yield is available.
More about Mila Resources
Mila Resources Plc is a London-listed post-discovery gold and copper resource development company focused on Australian mineral projects.
Its portfolio includes the Kathleen Valley Gold Project in Western Australia, where Mila holds rights to a 30% interest with an option to increase its ownership to 80%. The company is also progressing a portfolio of exploration projects in Queensland as it seeks to build exposure to gold, copper and other prospective mineral resources.
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