Mt Malcolm Mines Secures $1.94M to Advance High-Grade Gold Drilling
Mt Malcolm Mines has completed significant drilling at its Golden Crown and Dumbarton prospects, revealing high-grade gold intercepts and securing nearly $2 million in funding to support ongoing exploration.
- Raised $1.94 million through rights issue and placements
- Completed 2,619m RC drilling at Golden Crown and Dumbarton
- High-grade gold intercepts up to 30.77 g/t at Golden Crown
- Assay results pending for Dumbarton drilling
- Exploration expenditure of $514k with no production this quarter
Funding Boosts Exploration Momentum
Mt Malcolm Mines NL (ASX, M2M) has successfully secured $1.94 million before costs from shareholders and sophisticated investors via a rights issue and placements. This capital injection underpins the company’s next phase of drilling and development activities at its Malcolm Project in Western Australia’s Eastern Goldfields.
Drilling Delivers High-Grade Gold Hits at Golden Crown
The quarter saw the completion of 2,619 metres of Reverse Circulation (RC) drilling across the Golden Crown and Dumbarton prospects. At Golden Crown, an eight-hole infill program totalling approximately 800 metres targeted the Western Lode, yielding multiple high-grade gold intercepts. Notably, hole 25GCRC008 returned 3 metres at 11.00 g/t gold from 22 metres, including a standout 1 metre at 30.77 g/t. Other significant intercepts included 11 metres at 3.13 g/t and 12 metres at 2.15 g/t in nearby holes, reinforcing the prospect’s potential.
Dumbarton Drilling Completes with Assays Pending
Meanwhile, an 18-hole RC program at Dumbarton, covering about 1,825 metres, was completed to test extensions of known mineralisation. Geological logging noted extensive alteration and quartz veining, typical of gold-bearing systems. All samples have been submitted for assay, with results awaited. These drilling campaigns are integral to Mt Malcolm’s strategy to deliver maiden JORC-compliant Mineral Resource Estimates, a critical milestone for advancing project development.
Financials and Operational Outlook
The company reported $514,000 spent on exploration and evaluation during the quarter, focusing on field activities, geology, and related costs. There was no production or development activity recorded this period. Cash flow statements reveal a net operating cash outflow of $250,000 and investing outflows of $514,000, balanced by financing inflows from equity issues. Mt Malcolm holds $934,000 in cash and has access to an additional $105,000 in unused financing facilities, providing an estimated 1.36 quarters of funding at current expenditure levels.
Strategic Positioning in a Historic Gold Belt
The Malcolm Project spans over 230 square kilometres within the prolific Norseman–Wiluna Greenstone Belt, a region renowned for high-grade gold production yet still underexplored in key structural corridors. Mt Malcolm’s focus on structurally controlled gold systems aims to support early-stage production via toll treatment and low-capital mining, potentially accelerating value realization.
With technical planning advancing for further exploration and development pathway assessments, Mt Malcolm Mines is positioning itself to capitalize on its promising drilling results and the rich geological setting of the Eastern Goldfields.
Bottom Line?
As assay results from Dumbarton loom and maiden resource estimates approach, Mt Malcolm’s next moves will be pivotal for its growth trajectory.
Questions in the middle?
- What will the Dumbarton assay results reveal about the prospect’s gold potential?
- How soon can Mt Malcolm deliver maiden JORC Mineral Resource Estimates for both prospects?
- Will the company pursue further capital raising to extend its exploration runway beyond 1.36 quarters?