The latest drilling results from Mt Malcolm Mines have delivered on two fronts, confirming strong gold intercepts and highlighting the potential at another prospect within the explorer's flagship, namesake project in Western Australia's Goldfields.

The results from Picnic South included 1m at 4.47g/t gold from 87m and 5m at 1.11g/t from 18m – and confirmed a mineralised corridor along 700m of strike, south of the historical Picnic workings.

"This was really our first real chance since listing to get stuck into Sunday Picnic with the drill bit," managing director Trevor Dixon said.

"And it's absolutely delivered in spades with both the Sunday Underground results last month and the Picnic South drilling most recently.

"It demonstrates that this is just another of M2M's high-quality prospects in our overall Malcolm project."

The region is renowned for high-grade historical mines and the Sunday workings produced 1,325oz at 21.2g/t between 1897-1912.

The Picnic South drilling program was designed as an infill program between a previous explorer's drilling, to validate high-grade historical intercepts and improve geological confidence with drilling at 50m spacing.

The results will feed into an initial JORC (2012) resource for the project, which is currently under consideration.

Experienced consultant Dr Spero Carras was appointed last month to drive the technical evaluation and resource estimation for the Sunday Picnic, Dumbarton and Golden Crown prospects.

Local knowledge

Dixon has spent his career in the Leonora district, starting when the area had no large-scale miners but a big cohort of prospectors using the state battery for processing.

The area is now dotted with multimillion-ounce operations, from Northern Star Resources' Thunderbox to the north, Vault Minerals' King of the Hills to the west and AngloGold Ashanti's Sunrise Dam to the east.

The Mt Malcolm team consolidated more than 100 tenements in the region known for high-grade historical workings into the 235sq.km Malcolm project – and divided it into seven distinct prospect areas to streamline the exploration approach at the vast landholding.

"In our mind, each and every one of these prospects has the ability to host a mining operation," Dixon said.

Golden aspirations

The historical Golden Crown mine was also high grade - in the order of almost 1oz to the tonne - producing 1,720oz from 1,863t between 1899-1904.

Mt Malcolm demonstrated Golden Crown's further potential earlier this year through a bulk sampling program that generated about A$1.4 million.

High-grade rock chip samples have yielded up to 458.39g/t gold and Dixon is keen to do more drilling at Golden Crown before year-end.

And with the gold price reaching record highs this month above A$6,000/oz, Mt Malcolm has the appealing option up its sleeve to pursue more bulk sampling.

"It's aspirational that we secure a processing facility for some of our other stockpiles," Dixon said.

"It was really good to have a cash-flow positive March quarter.

"It was a great milestone for the business – it shows we're taking it forward and demonstrated to the market that there's potentially a really good gold mine there at Malcolm."