Mt Malcolm Mines drills promising WA gold prospects

• Mt Malcolm Mines completes eight holes at Golden Crown, plans 18 more at Dumbarton
• Prospects form part of namesake project in WA goldfields
• Company targeting low-cost, high margin project

Special Report: Mt Malcolm Mines has completed eight RC drill holes at the Golden Crown and Dumbarton prospects of its Malcolm project in WA, with more drilling on the horizon to support a maiden resource estimate.

Mt Malcolm’s (ASX:M2M) namesake project sits just 12km from the town of Leonora and Genesis Minerals’ (ASX:GMD) historic Gwalia gold mine, highlighting the significant opportunity on offer as it maps out the area’s gold resources.

Gwalia is just one of a number of processing facilities nearby. They include Vault Minerals’ (ASX:VAU) King of the Hills mill, where an $80m expansion to 6Mtpa is underway.

M2M says initial geological observations of drill samples indicate significant quartz veining, silicification, iron oxide and sulphidic alteration consistent with modelled mineralised zones.

Eight holes have been drilled at Golden Crown for an advance of 800m, with plans afoot to drill more, refining collar positions based on real-time geological interpretations and the results of the current phase.

An 18-hole (~1500m) infill RC program at Dumbarton planned to support a maiden resource estimate, with even more drilling on the agenda off the back of these initial observations.

Assays from the Golden Crown program are pending.

Listen: Explorers Podcast with Mt Malcolm Mines – Dipping into the royal line near Leonora

A solid resource base to bolster production

Bulk sampling at Golden Crown last year provided critical insights into grade distribution, metallurgical recovery (up to 22.4g/t gold) and structural controls.

Plus, processing to date of 979 wet metric tonnes of mineralised material has yielded 345.7oz of gold doré sold for ~A$1.38M.

This program validated gold grade continuity, metallurgical recovery, and mining parameters, greatly de-risking the prospect for future mining and reinforcing its status as a near-term production opportunity.

“The current drilling program at Golden Crown has provided encouraging geological observations that align well with our expectations,” M2M managing director Trevor Dixon said.

Metallurgical testwork on tailings from the bulk sample is ongoing to optimise gold recovery processes, further enhancing Golden Crown’s production-readiness.

“With Dumbarton drilling next, we’re advancing toward establishing a solid resource base,” Dixon said.

“This campaign represents a pivotal step in our strategy to become a low-cost, high-margin gold producer in the Leonora region.”

Scoping studies are planned to evaluate opportunities to toll treat M2M’s potential open pit ore at nearby processing plants, with gold prices upwards of $5000/oz enhancing the cash spinning opportunity from even small gold operations.

This article was developed in collaboration with Mt Malcolm Mines, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.