Mt Malcolm Mines (ASX:M2M) has appointed iDrilling Australia to undertake an 8,500m reverse circulation (RC) and diamond drilling program at its Calypso Gold Project near Leonora in Western Australia.
The proposed 30-hole program will test the T1, T2, and T3 Constance Lode system, targeting mineralised shoots, corridor continuity, and up-plunge and down-plunge extensions. About 3,000m of diamond drilling is planned through tails from RC pre-collars.
Final collar locations, depths, and sequencing remain subject to approvals, budget allocation, site conditions, and drilling results.
Under the agreement, iDrilling will accept 50% of eligible invoiced drilling costs in Mt Malcolm shares issued at $0.01 each. The issue price represents a 43% premium to the company’s 15-day volume-weighted average price, with the remaining costs payable in cash.
The number of shares issued will depend on the final eligible invoice value and Mt Malcolm’s available placement capacity, with shareholder approval to be sought where required.
Managing Director Trevor Dixon says the drilling is intended to advance the defined mineralisation towards potential resource evaluation.
“Calypso has consistently been the prospect with superior potential upside. The upcoming planned drilling program is designed to move the defined mineralisation to the next stage of resource growth,” Dixon says.
“We welcome iDrilling’s commitment to this vision at Calypso, and their scrip component reflects the value they see in the project.”
Drilling builds on historical target
The T1–T2 zones host a historical exploration target of 2.9–3.9 million tonnes (Mt) @ 1.6–2.2 grams per tonne gold (Au) for 153,000–279,000 ounces. The target was reported in 2019 by Torian Resources, now GoldArc Resources (ASX:GA8).
The potential quantity and grade are conceptual, with insufficient exploration completed to estimate a mineral resource. It remains uncertain whether further work will result in one.
The target excludes T3, which Mt Malcolm discovered during 2022–2023 drilling about 400m down plunge from T2. Results from T3 include 16.21m @ 4.01g/t Au from 343.25m.
Calypso forms part of the wider Malcolm Project, where Mt Malcolm was also preparing a 2,000–2,500m RC drilling program at Golden Crown in July to test extensions beyond its existing mineral resource, as reported by Mining.com.au.
The company says mobilisation and drilling are expected to begin in mid to late September, subject to site access and operational readiness. Initial assays are expected within two months of sample submission.
Mt Malcolm Mines is a gold-focused explorer advancing the Malcolm Project in WA’s central Eastern Goldfields, including the Calypso and Golden Crown prospects near Leonora.
Write to France Pinzon at Mining.com.au
Images: Mt Malcolm Mines
