Why Mt Malcolm Mines (ASX:M2M) is lining up Calypso gold drilling near Leonora with cash running low

Sonal Goyal

12 November 2026 02:06 PM AEDT

Why Mt Malcolm Mines (ASX:M2M) is lining up Calypso gold drilling near Leonora with cash running low

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Key Highlights

Golden Crown drilling returned 6 metres at 9.28 g/t gold from 31 metres, with gold also found about 350 metres west of earlier drilled core.
The company plans about 8,500 metres of drilling across roughly 30 collars at Calypso, with a start date not yet confirmed.
Cash fell from A$1.35 million to A$215,000, leaving an estimated 0.82 quarters of funding, even after counting an undrawn A$700,000 director loan.
Shareholders will vote on a potential Placement of up to 235 million shares at the AGM on 17 November 2026.

Mt Malcolm Mines (ASX:M2M) is a gold explorer with a small defined resource near Leonora in Western Australia. In October it reported assays from a 24-hole drilling programme at its Golden Crown prospect, and it says its focus for the December quarter is a larger programme at the nearby Calypso target.

The constraint is funding. Its Appendix 5B for the September quarter, released on 29 October 2026, shows cash of A$215,000 and an estimated 0.82 quarters of funding even after counting an undrawn A$700,000 Loan Facility from its managing director. Shareholders will vote at the 17 November 2026 Annual General Meeting (AGM) on approving a potential placement of up to 235 million shares.

Golden Crown results

The Malcolm Gold Project covers about 200 km² east and north-east of Leonora. Golden Crown hosts a JORC 2012 Mineral Resource of 95.7 kt at 1.50 g/t gold for about 4,600 ounces, mostly in the Indicated category, reported in March 2026 and limited to about 50 metres depth.

The July–August 2026 programme comprised 24 reverse circulation holes for 2,520 metres. Results announced on 21 October 2026 included 6 metres at 9.28 g/t gold from 31 metres and 9 metres at 3.64 g/t gold from 12 metres. The company also reported gold about 350 metres west of the earlier drilled core. These are exploration intercepts; they have not yet been incorporated into an updated resource.

Calypso and regional targets

Calypso is described by the company as an Exploration Target, which is a conceptual range rather than a resource. A drilling contract with iDrilling Australia, announced on 4 September 2026, covers a planned programme of about 8,500 metres across roughly 30 collars, with half of eligible invoiced costs payable in M2M shares at A$0.01 each. The AGM notice seeks ratification of 18.2 million shares already issued to iDrilling. The company has not confirmed a start date in the material reviewed.

Regional work defined copper and gold targets, including rock chips up to 1.37% copper at Braiser. A consultant also continued a technical and economic assessment of a 500,000-tonne-a-year processing plant; no decision has been announced.

Cash, burn and dilution

According to the Appendix 5B for the quarter ended 30 September 2026, cash fell from A$1.35 million to A$215,000. Net operating outflows were A$404,000 and exploration spending of A$706,000 was classed as investing. No Equity was raised in the quarter. The company expects similar levels of spending and points to its placement capacity under Listing Rules 7.1 and 7.1A and its record of raising capital.

The A$700,000 facility is an Unsecured Loan arrangement with managing director Trevor Dixon, extended to 31 January 2027, and was undrawn at quarter end. The company had about 793 million shares on issue, so issuing the full 235 million placement shares would add roughly 30% to that count, in addition to further drilling-related share payments.

Risks and upcoming events

The immediate risk is financing: a raising, a draw on the director loan, or both appear necessary to fund the Calypso programme. Other risks include the small scale of the existing resource, exploration uncertainty at Calypso, and the dependence of any processing plan on further studies. Gold prices have supported activity across WA explorers, but a supportive Commodity backdrop does not guarantee funding on acceptable terms.

The AGM is scheduled for 2pm AWST on Tuesday 17 November 2026 in Perth. Resolutions include the remuneration report, three director elections, a 10% placement facility, the potential placement and the iDrilling ratification.

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