Scorpion Minerals to Earn 70% of Jungar Flats Project with $3M Exploration Spend

Strategic Joint Venture to Optimize Exploration Focus

E79 Gold Mines Limited (ASX: E79) has formalized a farm-in and joint venture agreement with Scorpion Minerals Limited (ASX: SCN) over the expansive Jungar Flats Project in Western Australia's Murchison goldfields. This move allows E79 Gold to strategically reduce its capital commitments on Jungar Flats while maintaining exposure to potential upside through Scorpion's exploration efforts.

The agreement grants Scorpion Minerals the right to earn a 51% interest in the project by investing $1.5 million in exploration within three years, with an option to increase its stake to 70% by spending an additional $1.5 million over the following two years. An upfront payment of $100,000 to E79 Gold and Scorpion's appointment as project manager underscore the active role Scorpion will play in advancing the tenements.

Jungar Flats: A Significant Gold Exploration Opportunity

Jungar Flats spans 698 square kilometers across eight tenements in a region known for its rich gold endowment, including nearby multi-million-ounce deposits. E79 retains 100% ownership of the mineral rights on most tenements, except for one where iron rights are held by Fenix Resources. The project’s location within the Murchison goldfields positions it within a well-established regional gold province, enhancing its exploration potential.

Refocusing on Near-Term Discovery Targets

With the joint venture in place, E79 Gold is pivoting its technical and financial resources towards its 100%-owned Laverton South Gold Project and Mountain Home IOCG Copper-Gold Project. Laverton South, covering 272 square kilometers within the prolific Laverton Tectonic Zone, is adjacent to Kalgoorlie Gold Mining’s recent Lighthorse discovery, which has delivered promising drill results. E79 plans to commence aircore drilling to test these targets imminently.

Meanwhile, the Mountain Home Project in the Northern Territory’s McArthur Basin offers compelling copper-gold prospects, highlighted by rock chip assays with up to 45.5% copper and 11.75 g/t gold. Preparations for initial drilling are underway, targeting the MH Gossan area during the upcoming dry season.

Management Perspective and Market Implications

CEO Ned Summerhayes emphasized the benefits of the arrangement, noting that the farm-in reduces E79’s expenditure commitments while preserving exposure to exploration success at Jungar Flats. Partnering with Scorpion Minerals, a company with a proven discovery track record, is expected to enhance the project’s prospects within a larger regional framework.

This strategic realignment reflects a broader trend among junior explorers to leverage partnerships to manage capital efficiently while advancing multiple projects. For E79, the move could accelerate value creation by concentrating efforts on higher-conviction targets with near-term discovery potential.