Mila Resources (LSE:MILA) has released findings from its first diamond drilling campaign at the Yarrol Gold Project in Queensland, with results confirming that gold-bearing structures extend from surface to depths of around 300 metres. The programme has validated the overall scale and continuity of the mineralised system, although high-grade intersections proved less consistent at depth compared with shallower zones.
While deeper holes returned lower and more variable grades than originally expected, the results have enabled the company to significantly refine its geological model. As a result, Mila is shifting its near-term focus toward multiple shallow, near-surface targets along strike at Yarrol, Monal and Mt Steadman, where management believes a more capital-efficient route to resource growth can be achieved. A fully funded reverse circulation drilling programme is scheduled to commence in the first quarter, aimed at expanding resources in these priority areas and supporting disciplined capital deployment across the exploration portfolio.
From an investment standpoint, the outlook remains constrained by the absence of revenue, continued losses and ongoing cash outflows, although reported leverage remains low and an equity buffer provides some balance sheet support. Share price technicals are mildly negative, with the stock trading below key moving averages and a negative MACD reading. Valuation offers limited downside protection given negative earnings and the lack of a dividend.
More about Mila Resources
Mila Resources Plc is a London-listed mineral exploration company focused on advancing post-discovery gold projects, with its core asset base located in Queensland, Australia. The company’s activities centre on drilling, geological interpretation and resource definition across key licences including Yarrol, Monal and Mt Steadman, which lie along the prospective Yarrol Fault corridor.
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