Instructions
Get at least one star fragment from the level called "Energy Hold." Go back to the first room of the level with several transport pipes. Go into the pipe in the top center area of the room.
Go to the right until you reach a gate. Press "Up" to use the star fragment to open the gate. Go up the hill on the right until an object blocks your way.
Press the "A" button while using Mario to perform a spin jump. This will remove the object and start a cut scene showing you how to use the drill ability.