Mt Malcolm Mines Launches 8,500m Drill Program at Calypso Gold Project
Key Takeaways
- Mt Malcolm Mines has appointed iDrilling Australia to drill approximately 8,500m across 30 holes at the Calypso Gold Project, targeting the T1, T2 and T3 Constance Lode system near Leonora, Western Australia, with mobilisation expected mid to late September 2026.
- The T3 Constance Lodes — discovered by M2M's own 2022–2023 diamond drilling as a blind down-plunge extension of approximately 400m beyond T2 — remain open in both directions and are not captured in any existing resource estimate, representing unquantified additional upside.
- The existing T1–T2 historical Exploration Target stands at 2.9–3.9 Mt at 1.6–2.2 g/t Au for 153,000–279,000 oz Au, with the longer-term program objective being progression toward a Maiden JORC 2012 Mineral Resource.
- iDrilling has agreed to accept 50% of eligible drilling costs in M2M shares at $0.01 per share — a 43% premium to the 15-day VWAP — preserving M2M's cash position while signalling contractor confidence in the project's value.
- Initial assay results are expected within two months of sample submission, with T4 and the Northern Limb of the fold remaining completely untested and representing further exploration upside beyond the current program scope.
Drilling set to commence at Calypso Gold Project
Mt Malcolm Mines (ASX: M2M) has appointed iDrilling Australia Pty Ltd to carry out an RC and diamond drilling program at its Calypso Gold Project, located approximately 25 km southeast of Leonora in Western Australia. The proposed program, contemplating approximately 8,500m of drilling across around 30 drill-hole collar locations subject to final approvals and budget allocation, is expected to mobilise mid to late September 2026, subject to site access, pad preparation and operational readiness.
The program targets the T1, T2 and T3 (Constance Lode) system, testing high-priority gold shoot targets, corridor continuity, and up-plunge and down-plunge extensions. Initial assay results are expected within 2 months of sample submission, subject to drilling progress, sample dispatch and laboratory turnaround times.
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Program targets and geological foundation
T1, T2 and T3 Constance Lode system in focus
The Calypso prospect sits within the Norseman–Wiluna Greenstone Belt of the Yilgarn Craton, a geological terrane that hosts world-class gold deposits including Wallaby, Granny Smith and Gwalia. The prospect has attracted more than 20,000m of cumulative historical drilling across multiple exploration campaigns.
The T1 and T2 zones host a historical Exploration Target of 2.9–3.9 Mt @ 1.6–2.2 g/t Au for 153,000–279,000 oz Au (BMGS, 2019, reported by Torian Resources, now GoldArc Resources ASX:GA8). This target is historical and conceptual in nature — there has been insufficient exploration to estimate a Mineral Resource, and it is uncertain whether further exploration will result in such an estimate.
T3 (the Constance Lodes) was discovered through M2M’s 2022–2023 diamond drilling as a blind, down-plunge extension of approximately 400m beyond T2. Mineralisation there remains open both up and down-plunge, and T3 is not captured in the existing Exploration Target — meaning it represents additional upside not yet reflected in any resource estimate.
Calypso Gold Prospect drilling in prior campaigns established the structural and grade continuity that underpins the current program design, with the T3 Constance Lodes blind discovery emerging as the key down-plunge extension not yet reflected in any resource estimate.
Standout intercepts from M2M drilling and historical campaigns include:
- 16.21m @ 4.01 g/t Au from 343.25m in 22CALDD0011W1 (M2M, 2022–2023, T3 Constance Lodes)
- 14.0m @ 1.63 g/t Au from 190.5m in MD03 (BHP Malcolm JV, not independently verified by M2M)
- 7.0m @ 3.48 g/t Au from 102m in CPRC010 (North Ltd, not independently verified by M2M)
- 5.0m @ 3.91 g/t Au from 126m in CD003 (North Ltd, not independently verified by M2M)
The program is designed to prioritise the highest-confidence targets first. Subsequent holes will test corridor continuity and open extensions, with the drilling sequence able to be adjusted as early geological, structural and assay data is received. The longer-term objective is progressing T1–T2 toward a Maiden JORC 2012 Mineral Resource — an outcome contingent on drilling results, further modelling and additional work. T4 and the Northern Limb of the fold remain completely untested.
What is RC and diamond drilling — and why it matters at Calypso
RC drilling (Reverse Circulation drilling) uses a rotating drill bit and forced air to return rock chips to surface rapidly. It is faster and more cost-efficient than alternatives, making it well suited to shallower zones where broad sampling across a corridor is the priority.
Diamond drilling recovers a solid cylinder of rock (core) from depth, providing far more detailed geological information — including structure, grade continuity and alteration style. It is slower and more expensive, but critical where high-fidelity data at depth is needed to support resource evaluation.
The Calypso program uses both. RC pre-collars establish the hole efficiently through shallower ground, with diamond tails added at depth where the high-grade T3 shoots require precise core recovery. That hybrid approach — sometimes called an RC pre-collar/diamond-tail configuration — is designed to maximise geological information per dollar spent across a system with both shallow and deep mineralisation.
Capital-efficient structure advances the program
The commercial terms of the iDrilling appointment are structured to preserve M2M’s cash position while keeping the drill program funded. Under the agreement, iDrilling has agreed to accept 50% of eligible invoiced drilling costs in M2M shares, with the remaining 50% paid in cash.
The scrip component is to be issued at $0.01 per M2M share, which represents a 43% premium to the 15-day VWAP of M2M shares traded on ASX. The final number of shares to be issued will be based on the final eligible invoiced amount, excluding GST. Shares will be issued under the Company’s available placement capacity under ASX Listing Rule 7.1, with any shortfall subject to relevant shareholder approvals where required.
| Item | Detail |
|---|---|
| Project | P37/8792, Calypso Gold Project, Leonora, Western Australia |
| Prospect/system | T1, T2 and T3, Constance Lode system |
| Contractor | iDrilling Australia Pty Ltd |
| Drilling type | RC drilling and diamond drilling |
| Indicative program | Approximately 8,500m across 30 planned holes, subject to final optimisation |
| Diamond scope | Diamond tails from RC pre-collars; approximately 3,000m diamond component proposed |
| Payment structure | 50% cash / 50% M2M scrip for eligible invoiced drilling costs |
| Scrip issue price | $0.01 per M2M share, subject to final approval and ASX requirements |
| Expected start | Mid to late September 2026 |
| Assay timing | Within 2 months of sample submission |
iDrilling accepting scrip at a 43% premium to market VWAP is a notable commercial signal. A drilling contractor willing to take project equity at a premium to the prevailing share price is, in effect, expressing confidence in the value of what the drill bit may find.
MD quote
Trevor Dixon, Managing Director, Mt Malcolm Mines NL
“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. We welcome iDrilling’s commitment to this vision at Calypso, and their scrip component reflects the value they see in the project, and we appreciate their confidence in advancing it alongside us.”
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What to watch next
The near-term catalyst sequence for M2M investors to monitor:
- Mid to late September 2026: Mobilisation and drilling commencement at Calypso, subject to site access, pad preparation and operational readiness
- Within 2 months of sample submission: Initial assay results, subject to drilling progress, sample dispatch and laboratory turnaround times
- Ongoing: Drilling sequence may be refined as early geological, structural and assay results inform later hole positioning
- Longer-term objective: Progression of T1–T2 toward a Maiden JORC 2012 Mineral Resource, contingent on drilling outcomes, modelling and further exploration work
The longer-term path from resource definition to production at Calypso is supported by M2M’s gold processing plant acquisition, which secured 500,000 TPA of processing capacity and provides a tangible route to mill feed once drilling outcomes are known.
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