Mt Malcolm Mines Raises $3.05M, Acquires 500k TPA Processing Plant, Confirms Gold Mineralisation

Transformative Quarter for Mt Malcolm Mines

Mt Malcolm Mines NL (ASX – M2M) has reported a pivotal quarter ending 31 December 2025, marked by strategic moves that could reshape its operational and financial trajectory. Central to this progress was the acquisition of major components of a 500,000 tonnes per annum carbon-in-leach (CIL) gold processing plant located in the prolific Leonora district. This infrastructure acquisition positions Mt Malcolm among a select group of junior explorers with ready access to mid-scale processing capabilities in the Eastern Goldfields.

The plant, which includes crushing circuits, milling units, power generation, and gold recovery systems, is suitably sized to process ore from the company’s expanding portfolio of prospects. Beyond supporting future self-processing of its gold inventory, the plant offers a potential near-term revenue stream through toll milling of third-party ore, subject to refurbishment, commissioning, and regulatory approvals. The company anticipates commissioning could be achievable within 12 to 15 months following a final investment decision.

Capital Raising and Exploration Success

Backing this operational leap was an oversubscribed renounceable rights issue that raised $3.05 million before costs. Strong participation from existing shareholders and new investors underscores market confidence in Mt Malcolm’s growth strategy. These funds are earmarked primarily for expanded drilling programs, resource modelling, and preliminary economic assessments.

On the exploration front, Mt Malcolm’s infill reverse circulation (RC) drilling at the Picnic South prospect delivered encouraging results. The program reduced historical drill spacing from 100 to 50 metres, enhancing geological confidence and supporting progression towards a maiden JORC-compliant Mineral Resource Estimate. Assays confirmed consistent, continuous near-surface gold mineralisation along a 700-metre strike corridor, with notable intercepts including 8 metres at 0.74 grams per tonne gold and higher-grade intervals within.

Strategic Outlook and Project Potential

The 100%-owned Malcolm Project spans over 230 square kilometres in the Norseman–Wiluna Greenstone Belt, a region with a rich history of gold production exceeding 30 million ounces. Multiple underexplored structural corridors within the project area present significant discovery upside. Priority targets such as Golden Crown, Dumbarton, and Sunday Picnic exhibit potential for shallow, open-pit amenable gold mineralisation, which aligns well with the company’s processing capabilities.

Looking ahead to the March 2026 quarter, Mt Malcolm plans to advance engineering reviews and refurbishment planning for the processing plant, pursue follow-up drilling at high-priority prospects, and integrate new data into updated 3D geological models. The company also aims to progress maiden Mineral Resource Estimates and environmental approvals to support trial mining and processing testwork. Engagement with Traditional Owners and stakeholders remains a key focus to ensure responsible development.

Financial Position and Operational Readiness

Financially, Mt Malcolm reported exploration and evaluation expenditures of $295,000 during the quarter, with no production activities undertaken. The company ended the period with approximately $1.49 million in cash and an additional $447,000 in unused financing facilities, providing an estimated 2.5 quarters of funding at current expenditure levels. Payments to related parties, including director fees, were disclosed in line with ASX requirements.

While the company has yet to generate revenue from its new processing assets, the acquisition and capital raise lay a solid foundation for future value creation. The potential for toll milling offers a non-dilutive cashflow avenue that could support ongoing exploration and development activities.