Mila Resources (LSE:MILA) — Yarrol Project Update

0:00 Good afternoon, and welcome to the MILA RESOURCES PLC YARO Project Update Investor Presentation. Throughout this recorded meeting, investors are in listen only mode. Questions are encouraged and can be submitted at any time just using the Q and A tab situated in the right hand corner of the screen. Just click Q and A, type in your question and press in. Company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted and publish responses where appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Mark Stephenson, Executive Chairman. Good afternoon, sir.

0:30 Good evening. Well, ahead of our imminent drilling campaign, we'd like to explain why we think we have an exceptional opportunity in Queensland, why we were able to acquire such an exciting portfolio of properties as a small company, how we plan to unlock and add value for our shareholders and partners, and why I and members of my team have recently purchased shares.

1:04 Currently, we are focusing on Yarrow, which is located within within an established mining jurisdiction with numerous successful operations locally. Initially, we are drilling on a two kilometer stretch of a 20 kilometer structure with known gold occurrences, giving us exposure to a highly geared gold play. With gold at historical high levels, we are in a completely different economic environment than when the holes were sunk several years ago. We were able to acquire this asset because EMX, a royalty company, has a confidence in our team's exploration credentials and believe we can deliver on our plan to unlock value in Queensland despite the small size of our company.

2:05 Alastair will go into more details of our drilling campaign, which will demonstrate why we why our current market capitalization does not reflect the value of this opportunity and why I and members of my team have been investing in MILA shares at these current levels.

2:28 Okay. Alastair, can I pass you over to go through the presentation, please? Certainly. Mark, this is just an overview of our portfolio as it stands, and the focus at present is Yarrow, one of our Queensland assets, which we are very excited about. Firstly, why Queensland? Rich mining heritage. It's a great jurisdiction for us, and there's a lot of successful operations in the area surrounding these licenses as well. So there's good heritage. There's good prospects, and there's business success surrounding these licenses, so we like it. And for our licenses that we have picked up from EMX or have the option to get, we obviously have Manal in the Far North, Yarrell in the Center, and Mount Stedman in the South as well. And, obviously, some excellent operations and exploration projects surrounding us. And as mentioned, Yarrow is very much our focus at present.

3:24 Now Yarrow was historically drilled back in the nineties and has had a bit of work in it in the early two thousands and in the last couple of years, but no one has really systematically explored it in about thirty years. The exploration in the early nineties did determine nonjaw compliant resources of around a 100,000 ounces, about 1.5 grams per ton, and these were shallow down to about 60 meters. So, basically, the early explorers did the hard work. They established a mineral system. They found continuity. But due to market conditions back in that time, they did not continue on. And since then, it's been underappreciated. There is a 20 kilometer structure sitting within this license gold confirmed along at least eight kilometers of that, and the rest of the geology is very prospective.

4:13 So we see significant upside and near term upside and potential as well. What we have done since we acquired the licenses was to go back through the historic data of which there is a wealth, pull out everything that is of value, and put it in a modern format so we can actually add value immediately in that way, but also guide ourselves on how we want to go and explore this. Also, as a first pass, we went and updated the geophysics. The last was done in the mid nineties and was rough, but it was out of date. So we commissioned a survey of the historic resource area. That's about two kilometers and where historic kind of drilling extended, and this has been very successful. They've confirmed what the early explorers thought in terms of geomagnetic features associated with mineralization and has given us a strong vectoring tool about with which to explore the license.

5:07 It's also confirmed to us that areas where gold is hit historically but weren't included in the historic resource are very prospective for extension of the mineralized structures. This is why we're going back and drilling there in the next week or two. Our drilling program has three key things we want to achieve. Firstly, confirm historic drill intercepts. The core and chips from back in the nineties aren't available. We trust the data, and the pads are still there. When I was on the ground, I saw them, and we do trust it. But the historic drilling was actually, as we mentioned, quite shallow down to eighty hundred meters. So what we want to do is go and stand on the same pads, drill some of these best intercepts again to give ourselves confidence that the historic intercepts are good, but then extend them down to about one fifty, 200 meters and actually starts widening out the actual walls that we're identifying on the property.

6:02 That comes to point two, which is, again, our second name is expand continuity of mineralization. There are actually many structures that were intercepted in historic drilling that laid out side the historic resource area. We can see them clearly in the data. They weren't included, and the holes put in just to bring them into the resource were never completed. So what we aim to do is start infilling some of these gaps and, again, build our confidence in continuity of mineralization and show the the upside of this of this project. And number three is actually extend the mineralized footprint. As I said on reserve review of the historic data, we found that the model for the actual extended mineralization seems solid and is reflected. Well, these three dipping structures, yeah, in the drill holes, but the historic drilling and more recent drilling didn't step outside that core zone of the resource. So we want to actually extend the footprint laterally as well and then just build the framework upon which we think and we are confident we can actually build a significant resource and asset into the company in the near to midterm.

7:08 And these are the developments we're aiming for now. So the hour at the moment, we have target definition and our database work in geophysics in q one of this year, and q two is where we're at with the drilling. Following what we expect to be successful drilling, we'll then look to take it the resource further down the value chain and derisk it further and add value with metallurgical studies, geotechnical studies, get the structure right, and then begin to start building on the ounces within the deposit itself. Meanwhile, we'll also look to extract value from the Monau and Mount Stebbins licenses as well. Mark, I hand back to you to summarize where we're at at the moment. Okay. Well, I appreciate this presentation's very short, but the opportunity is actually very large, and the gearing on that is exceptional.

8:01 Thinking in conclusion, we really believe the market is not giving us credit for the opportunities that we've identified.

8:11 And at these levels, we provide a highly geared, fully funded play into an exciting gold opportunity. And we look forward to some of your questions. Thank you very much. Fantastic. Thank you very much indeed for your update today. Ladies and gentlemen, do please continue to submit your questions just using the q and a tab situated at the top hand corner of the screen. While the team take a few moments to review those questions submitted today, I'd like to remind you the recording of the presentation along with a copy of the slides and

8:42 the published Q and A can be accessed by your investor dashboard. Mark Alistair, as you can see, we've had a number of questions both pre submitted throughout today's presentation. If I may just ask you just to click on that q and a tab, start at the top, read out the question, and give your response where appropriate to do so, I'll pick up from you at the end. Thank you. No problem. Thank you. Okay. First one for you, Mark. Will you be seeking a partner to help fund further exploration at Yarrell? I'm concerned that you will run out of cash and have to dilute at rock bottom prices if you don't. Okay. Well, we've worked very hard at reducing the overheads, the g and a at MILA.

9:24 The the opportunity we've been given by EMX had an strong extremely small it was only 25,000 Aussie dollars upfront payment to be made with all the

9:40 everything loaded towards success because they believe that it's a great opportunity, really good potential for actually getting into production. So they wanted something to deliver the ability for them to get royalties down the road. And we think we've our plan can potentially unlock the whole of the structure. So the current the current drilling fund drilling drilling campaign, which will take us to the ownership of the project is fully funded. And we have enough capital in the bank as you could have seen from our recent interim results to last us out with our low GNAs to well beyond the end of the year.

10:34 So going back to partners, we feel very confident that we have enough in the bag to demonstrate real value on this project.

10:45 Yep. I I'll say on my side is that the the drilling campaign is being planned to be very efficient. And as Mark mentioned, we don't have to commit huge amount actually follow through on the deal with the MX. In terms of partners, we understand our our job is to return value to shareholders and investors. So if someone comes along, obviously, offers something that's very good, we'll, of course, consider it.

11:08 And in terms of partners in the local area, we have a wide network in the mining industry, between everyone involved in the company, and we are constantly cheap talking to people who work, you know, in the neighborhood and the neighboring operations and other operations in Australia as well. So we always keep those conversations open, but our priority is maximize the value of this asset at the moment and make sure we get the best value for shareholders in the near to mid term.

11:37 K. Second question, could you give an update on the other assets in Queensland? What is your plan with those? Certainly, both Manal and Mount Stedman are very exciting, prospects for us. Obviously, during the field visit, we took a number of rock chip and grab samples from Manal and the historic workings there, which returned very good grades, you know, up to kind of over 20 grams per ton gold and percentages of copper. There's a lot of potential, on that license. It's just we have to focus at the moment on Yarrow. We see that as the biggest priority for near term value return. But then within once that drilling is complete, we will, of course, be reviewing data on Manal. And Mount Steadman as well, again, had a historic resource, very shallow as well. So we see potential there as well, and just a really bolt on ounces under MILA's control, through all three licenses. So we are very excited by these by these licenses. It's a it's a great deal we've got, and they are underappreciated and in a great area with huge potential.

12:40 Okay, Mark. There's one. When can we expect an update on expiration at Kathleen Valley?

12:48 Well, Kathleen Valley hasn't changed. We've we've done a lot of very exciting work on the asset over the last few years, and it remains very much part of our portfolio. However, we very much believe we can get more added value in the near term by investing our money in in Queensland, but we are still very focused on delivering value by with whichever means on in Kathleen Valley. And that is something we are we are currently still working on and appraising.

13:40 Okay. Next question. Have you been on-site at all the Queensland properties? What were your initial impressions, and what makes you excited about these projects? Yes. I'd be on-site as part of the due diligence work. There are a number of things that made me excited. Firstly, the geology is perspective. There's proven mineralization on all three licenses in multiple locations for gold and copper, which in the current markets are good commodities to be in. For Manal, there looks to be high grade systems up there for gold. And by high grade, I mean, kind of, you know, over five grams of ton stuff, not other people with the cost of high grade these days. And also copper as well. We're right next to Mount Kaninda as well, which is a developing porphyry story in the area as well.

14:26 So there's real potential there. Yarrow, again, the historic resources, which were kind of the first step into developing an asset at scale, which just never happened after the nineties. So there's real near term wins for us on Yarrow. On the side of actually access and ease of operation and being efficient with how we're spending our money, all three licenses are easy to access. There's great relationships with the landowners. There's kind of no issues with native title that we've run into as well. So unlike Western Australia, it's easier on that side to do things as well. And, also, to get to the site, we can drive there from Brisbane in a day. It's a really easy and efficient asset. All three of them are really efficient assets for us to explore and make our money produce a lot of value for us.

15:13 And I'd say, yes, Stedman, it has a historic resource on it as well, deserves plenty of attention. It's on the list. We will get there. But all three of them, there's not a dud. They're they're all very prospective. So I'm just very excited by them all. Next question. I'll give this one to you, Mark. Is your model still to develop to a certain point and then JV slash sell or exit in some way to bring a project to production independently? Well, the answer on that is all all three, really. Like Alice has just said, we are you we've got lots of very successful companies surrounding us, and we intend to keep a dialogue going with all of them.

16:01 And with gold at these exceptionally high prices, it success with the drill bit will get us get get interest in us from them. There's mines in the area that have capacity to take more on. We would be able to, hopefully, with our model, be able to demonstrate the real value that lies there. But, also, you know, down the road, we can continue to look at how we develop it from our own internal basis as well. Along the same veins is can you talk through your strategy to move to a production state, and what is the anticipated CapEx to deliver your asset?

16:50 I'll talk through them initially, which is first things first is just prove the confidence and get this drill program away and understand the mineralization at Yarrow. Then once we have that exploration model built and basically is to build build the ounces on it and then derisk. So, again, our aim would be to establish a resource and then expand that resource, derisk that if we get the metallurgical studies and processing and geotechnical studies done nice and early as well so we have extra confidence and then moved along through kind of scoping feasibility stages as well. CapEx, that's market dependent and asset dependence where we talk to that now. Obviously, we understand that we have to have a certain scale of assets to make a good return. We're not looking for a mom and pop operation here. We're looking for something that can be developed at scale.

17:41 So that will come into our thinking. Next one for you, Mark. What milestones should we look for to drive the value in the business? Well, I think that's with our market cap at these levels, very interesting because we have you know, imminently, we're going to be starting the drilling campaign with the coming along very shortly afterwards. And that really should give us a very good idea of what we've potentially got on this structure. So once we have those in place, we can start looking at the plans to go beyond the two kilometers. We're currently looking at those four kilometers around us with just trenching and shallow drilling, which we can map up with the geophysics and start progressing along this 20 kilometer structure.

18:41 So with success, we will be able to open up more and more opportunities along this line. Cool. And, yeah, I'll save in mind. The the near term one is we're about to go drilling, and we expect good results. Look out for that, and then that will give us the framework on which to develop this asset further. Also, Alex, do you wanna talk about the assays and how we're hoping to to get better values? Yes. There is some suggestion in the historical data that there are some high grade elements to the deposit at Yarrell and that the previous method of analysis of the laboratory undervalued these. So it will be something we're doing in the current drilling program is to assess this issue and see if areas that have previously been given lower grade were actually just the this assay in the wrong way and then can give us an uplift to the actual overall grade of the of the deposit.

19:49 Well, I think that's most of the questions for now. Fantastic. Now you have taken those questions. Of course, any further questions that do come through, the team will be able to review those and we'll publish responses on the Investor Meet company platform. Just as we come to the end of the session and before redirecting investors to provide you with their feedback, know it's particularly important to you. Mark, could I just ask you for a few closing comments, please? Certainly. I think it just comes back to, like I said before, we don't think the market is really giving us credit for the work we've done, not just at Kathleen Valley, the the work that we've done preparing for this drilling campaign and the ability to pick up such an exciting portfolio of assets with for such a very low cost. I mean, we're fully funded to take us to the point that we will acquire the assets, and we have very, very low overheads amongst across our company, the g and a to support us going forward.

21:07 Fantastic. Thank you very much indeed, Mark. Alastair, thanks for updating investors today. Can I please ask investors not to close the session? It should be automatically redirected to provide your feedback in order the team can better understand your views and expectations. This will only take a few moments to complete, and that is greatly valued by the company. On behalf of the team at MILA RESOURCES PLC, we'd like to thank you very much for attending today's session. That concludes today's session, and good afternoon to you all.