Gold-focused explorer Mt Malcolm Mines (ASX:M2M) says it can achieve high gold recoveries via standard processing methods at its Golden Crown prospect ahead of the definition of a maiden resource.
Preliminary metallurgical testwork has demonstrated recoveries averaging 94.3%.
Managing Director Trevor Dixon says the testwork confirms the Golden Crown gold mineralisation can be extracted using a conventional cyanide extraction method.
“This outstanding result has firmly established confidence in Golden Crown as we progress towards a maiden resource estimate,” he says.
Testing was undertaken by Intertek Minerals on 25 mineralised single-metre intervals from drillholes completed in February.
The 2,778m drilling program returned the “highest ever recorded intersection” from Golden Crown which included hits of 2m @ 51.07 grams per tonne (g/t) from 16m and 1m @ 60.55g/t from 17m from within a broader intercept.
Mt Malcolms, which has a market capitalisation of $3.1 million, describes Golden Crown — located 10km from the Western Australian mining region of Leonora — as a near-surface, high-grade deposit, with 17 drill intercepts exceeding 5g/t.
Historic production from the prospect amounted to 1,720 ounces.
Interpretation of the recent reverse circulation drilling results has pinpointed four shallow stacked lodes, which are open along strike and down plunge.
Mt Malcolm says there is “significant potential” for further exploration and development within the prospect, particularly at depth and expanding the known high-grade deposits near surface and along strike.
The company previously outlined an exploration target for the prospect of 120,000 to 150,000 tonnes at an average grade of 10 to 15g/t for a contained 42,000 to 79,000 ounces of gold.
Planning is now underway for follow-up drilling.
Write to Angela East at Mining.com.au
Images: Mt Malcolm Mines
