Picnic South Drilling Yields Up to 4.47 g/t Gold Over 700m Strike
Mt Malcolm Mines NL has reported strong assay results from its recent drilling at the Picnic South Gold Prospect, revealing broad intervals of consistent gold mineralisation along a 700m strike. These findings enhance confidence in the project's potential for low-cost open pit mining.
- 14-hole, 1,470m reverse circulation drilling completed at Picnic South
- Multiple broad gold intersections with peaks up to 4.47 g/t Au
- Mineralisation confirmed along ~700m strike corridor, open at depth and strike
- Improved drill spacing to 50m supports upcoming JORC-compliant resource estimate
- Next steps include geological modelling, step-out drilling, and environmental studies
Drilling Success at Picnic South
Mt Malcolm Mines NL (ASX, M2M) has delivered encouraging assay results from its latest reverse circulation drilling campaign at the Picnic South Gold Prospect, part of the broader Malcolm Project in Western Australia. The 14-hole program, totaling 1,470 metres, has confirmed broad intervals of gold mineralisation extending over a strike length of approximately 700 metres. Notably, the drilling returned multiple significant intercepts, including standout one-metre peaks reaching as high as 4.47 grams per tonne (g/t) gold.
Enhancing Geological Confidence
The recent drilling was designed to tighten historical drill spacing from 100 metres to 50 metres, thereby improving geological confidence and supporting the development of a JORC-compliant Mineral Resource Estimate. The results demonstrate consistent grade-thickness continuity, with several intervals exceeding 5 gram-metres, such as 8 metres at 0.74 g/t Au and 6 metres at 0.93 g/t Au. Mineralisation starts near surface, at depths as shallow as 12 metres, and persists to over 90 metres downhole, indicating a robust and shallow gold system.
Strategic Location within a Major Gold Belt
The Picnic South Prospect lies within the Keith-Kilkenny Tectonic Zone, a major crustal-scale shear corridor known for hosting significant orogenic gold deposits. The geological setting features steeply dipping shear zones with quartz-carbonate-pyrite-arsenopyrite-pyrrhotite veining and alteration halos, typical of Archean gold systems. These structural controls have been validated by both historic and recent drilling, which collectively define a coherent mineralised envelope open along strike and at depth.
Historical Context and Future Potential
Historic workings and drilling in the area have reported exceptionally high-grade gold intercepts, including intervals exceeding 35 g/t Au. While these legacy results have not been independently verified to current JORC standards, they provide valuable context and highlight the prospect’s upside potential. Mt Malcolm Mines’ recent drilling complements this data, reinforcing the prospect’s economic promise, particularly given current gold prices above A$6,000 per ounce.
Next Steps Towards Development
Looking ahead, Mt Malcolm Mines plans to complete 3D geological and wireframe modelling to refine resource estimates. Step-out drilling will test strike extensions to the south, while metallurgical testwork and environmental baseline studies will support potential mine lease applications. The shallow nature of mineralisation and its continuity bode well for low-strip ratio, open-pit mining scenarios, potentially enabling cost-effective development in the near term.
Bottom Line?
With mineralisation open and grades consistent near surface, Mt Malcolm Mines is poised to advance Picnic South towards a maiden resource and potential development.
Questions in the middle?
- How will upcoming step-out drilling impact the size and grade of the resource?
- What metallurgical characteristics will influence processing and recovery rates?
- How might environmental and heritage studies affect the timeline for mine lease approvals?
