Mila Resources Reports Interim Progress with Gold Drilling Success and Full Licence Ownership

Mila Resources interim results to 31 December 2025: drilling momentum at Yarrol and full licence control

Mila Resources has put out a busy half-year update and, crucially, the drill bit is doing the talking. The company now owns 100% of its three Queensland licences – Yarrol, Mount Steadman and Monal – and diamond drilling at Yarrol has confirmed gold-bearing structures continue outside the historic resource shell. A 1,600 m reverse circulation (RC) “step-out” programme is already underway to chase shallow mineralisation along strike.

Financially, costs remain lean, cash closed the period at £636,903, and exploration spend was largely targeted at Yarrol. There’s a lot here for gold exploration followers to chew on.

Key takeaways from the half-year

• 100% ownership secured at Yarrol, Mount Steadman and Monal via £110,000 of shares issued to EMX Royalty Corp.
• Diamond drilling (1,451.1 m) at Yarrol confirmed continuity of gold-bearing structures beyond the historic resource shell, with intercepts of ~5 g/t gold traced from surface to ~230 m depth.
• Near-term focus is on shallow targets: a 1,600 m RC step-out programme is in progress along strike from the historic gold resource area.
• Regional work is advancing gold and copper targets at Mount Steadman and Monal, including porphyry-like gold-copper targets similar to the neighbouring Mt Cannindah project.
• Exploration team strengthened and Alastair Goodship appointed Chief Operating Officer.
• £406,298 capitalised on exploration and evaluation during the period.
• Period-end cash of £636,903; loss reduced to £239,046 (no tax charge).

Yarrol Gold Project: diamond success, shallow step-outs next

January’s initial diamond drilling results at Yarrol are the operational headline. Diamond drilling (DD) helps define structure at depth, and Mila reports continuity of gold-bearing structures beyond the historic resource shell, with ~5 g/t gold intercepts from surface down to around 230 m. For context, g/t means grams of gold per tonne of rock – a key grade metric in gold exploration.

Those results have sharpened the geological model and pointed to an immediate opportunity along strike at shallower depths. That’s where reverse circulation (RC) drilling comes in – a faster and cheaper way to test multiple targets near surface. The 1,600 m RC programme now underway is designed to “step out” from the historic resource, following the structure laterally to find extensions and continuity that could add near-surface ounces.

Why shallow step-outs matter

Shallow, along-strike hits can be high impact because they are typically quicker and cheaper to test and – if they hang together – easier to envisage as part of a future starter pit. Mila’s decision to pivot its immediate focus to these targets after the DD programme is a pragmatic move: use the structural insights from core drilling to guide lower-cost metres where the odds look better.

Two watch-fors: final assays from the diamond holes are still pending, and the historic resource shell is not JORC-compliant. So, while the early signs are encouraging, the company still needs more data to firm up size, grade continuity and the potential scale of a future resource update.

Mount Steadman and Monal: regional work for gold and copper

Beyond Yarrol, Mila is advancing regional work at Mount Steadman and Monal. The company is targeting “Yarrol-like” gold systems and porphyry-like gold-copper targets – the latter style being relevant given the recent discovery at the neighbouring Mt Cannindah project. Both licences have historic (non-JORC) resource areas and multiple confirmed copper and gold occurrences, offering optionality alongside Yarrol.

Full ownership of all three licences removes a key corporate friction point and should help Mila sequence work more efficiently across the portfolio as results come in.

Financials: lean overheads and funding for near-term work

Mila keeps the back office tight: there are no fixed office costs and no direct administrative staff employed. That shows up in the numbers, with the half-year loss narrowing to £239,046 (from £360,727). Exploration and evaluation assets rose to £6.7 million as Yarrol spend was capitalised.

Key numbers (six months to 31 December 2025)	Reported
Loss for the period	£239,046
Administrative expenses	£239,046
Exploration & evaluation costs capitalised	£406,298
Cash at bank	£636,903
Exploration & evaluation assets	£6,664,266
Net assets	£7,223,526
Shares in issue (period end)	677,561,522

On the funding side, Mila raised £756,000 in July 2025 and a further £270,000 from warrant exercises in November 2025, and also reports cash proceeds from share issues of £1,096,000 during the period. Net cash inflow from financing activities was £1,050,691, with exploration the core use of funds. The period ended with £636,903 in cash, providing runway for the current RC programme and ongoing regional work.

Capital structure: options and warrants

• Options in issue: 36,357,144.
• Warrants in issue: 456,675,568 (weighted average exercise price £0.048).
• 21,500,000 warrants were exercised during the period.
• Diluted EPS equals basic EPS because options and warrants were out of the money at 31 December 2025.

Management and team: COO appointment adds execution heft

Mila elevated Alastair Goodship to Chief Operating Officer in September 2025 and added a two-person exploration team on the ground. That dovetails with the ramp-up in activity and should help compress the cycle time between drilling, assay interpretation and follow-up targeting.

Josh’s view: what it means and why it matters

On balance, this is a constructive update. The diamond drilling has done its job by de-risking the structural model and pointing to shallow extensions worth chasing. The immediate pivot to RC step-outs makes sense and should deliver a steady cadence of near-surface results that can grow the footprint. Full ownership across the portfolio is a clear positive for speed and optionality.

The main watch-outs are standard for a junior explorer: assays are pending, the historic resource shell isn’t JORC, and cash, while adequate for near-term plans, will need close monitoring as metres accumulate. The large warrant overhang could be a double-edged sword – potential dilution if the share price moves up, but also a pathway to additional funding if exercises continue.

If the shallow RC programme starts to return consistent mineralisation beyond the historic envelope, that would be the needle-mover. Until then, this reads like disciplined execution with the drills chasing the right targets.

Near-term catalysts to watch

• Final assays from the September–November 2025 diamond programme at Yarrol.
• Initial results from the 1,600 m RC step-out campaign targeting shallow mineralisation along strike.
• Updates on regional work at Mount Steadman and Monal, especially any porphyry-like copper-gold vectors.
• Cash updates and any indications on the pace and scale of follow-on drilling.

In short, Mila is doing the right work in the right places. If the shallow step-outs can stitch together continuity beyond the historic shell, the case for a larger, near-surface gold system at Yarrol strengthens materially.