Scorpion’s Cash Tightens as It Pursues High-Risk, High-Reward Exploration in Murchison

Exploration Focus Sharpens on Murchison Gold Targets

Scorpion Minerals Limited (ASX: SCN) has delivered a compelling quarterly update for the period ending December 31, 2024, underscoring the significant exploration upside within its Pharos Project in Western Australia's Murchison Mineral Field. The company’s CEO, Michael Fotios, emphasized a renewed focus on accelerating exploration activities across multiple gold targets, buoyed by recent discoveries and a comprehensive review of historical data.

The Pharos Project, covering 924 square kilometres northwest of Cue, remains largely underexplored, particularly along the Dalgaranga-Big Bell shear corridor, a region known for hosting substantial gold deposits. Scorpion’s technical team has initiated a strategic reassessment of legacy exploration results, aiming to refine drill targets and unlock the potential of this highly prospective terrain.

Olivers Patch: A New Gold Frontier

A standout highlight from the quarter is the discovery of visible gold specimens at Olivers Patch, a prospect within the Pharos tenements. The gold nuggets, including an impressive 800-gram specimen found nearly a metre below surface, suggest remobilized gold deposits beneath shallow cover. This finding challenges previous assumptions, as earlier soil and lag sampling failed to detect significant anomalies due to wide sample spacing and transported surface materials masking bedrock mineralisation.

This breakthrough positions Olivers Patch as a priority target for follow-up drilling, with the potential to reveal substantial gold mineralisation concealed beneath laterite cover. The company’s approach to heritage clearances and access improvements further facilitates systematic exploration in this area.

Mt Mulcahy: Unlocking Copper Value Amid Market Strength

Beyond gold, Scorpion is advancing its strategy to realise value from the Mt Mulcahy copper prospect, also within the Pharos Project. The South Limb Pod zone hosts a JORC-compliant resource of 647,000 tonnes grading 2.4% copper, 1.8% zinc, 0.1% cobalt, and 20 g/t silver. The mineralised Volcanogenic Massive Sulphide (VMS) horizon extends over 13.5 kilometres and remains open along strike and at depth, with historic drilling limited to shallow depths.

Scorpion is evaluating multiple pathways to progress Mt Mulcahy, including recommencing fieldwork to test untested VTEM conductors and structural complexities that may conceal further high-grade copper mineralisation. The geological setting draws parallels with the nearby Golden Grove deposit, where recent discoveries have been made at significant depths, suggesting considerable upside potential for Mt Mulcahy.

Financial Position and Corporate Governance

Financially, Scorpion Minerals reported a modest cash outflow from operations and financing activities during the quarter, ending with a cash balance of just $1,000. However, the company maintains access to an unsecured loan facility of $2.5 million, with $1.3 million available at quarter-end, providing a runway for ongoing exploration and corporate activities. Notably, payments to directors have been deferred, reflecting prudent cash management.

The company’s Annual General Meeting held in November 2024 saw all resolutions passed, reinforcing shareholder support for its strategic direction. Scorpion’s management team remains committed to delivering value through disciplined exploration and resource development in the Murchison region.

Looking Ahead

With a robust portfolio encompassing gold, copper, lithium, and other minerals, Scorpion Minerals is well-positioned to capitalise on favourable commodity markets. The coming months will be critical as the company mobilises to test refined targets at Pharos and advances its Mt Mulcahy strategy amid a strengthening copper market. Investors and analysts will be watching closely for drill results and strategic updates that could redefine the company’s growth trajectory.