Scorpion Minerals Secures 70% Stake in Jungar Flats, Drilling to Start Soon
Scorpion Minerals has expanded its footprint in the Murchison Gold Province through a strategic farm-in and joint venture agreement with E79 Gold Mines, aiming to earn a 70% stake in the Jungar Flats Gold Project. Supported by a $1.5 million placement, the company is poised to commence drilling on high-grade targets imminently.
- Farm-in/JV agreement with E79 Gold Mines to acquire up to 70% of Jungar Flats Project
- Murchison landholding expanded to 1,600 km², largest along Big Bell-Dalgaranga shear corridor
- Placement raised $1.5 million at a 33% premium to fund exploration and JV consideration
- Imminent RC drilling planned on multiple high-grade gold targets with historic strong intercepts
- Historic drilling shows significant gold mineralisation including supergene and fresh rock zones
Strategic Expansion in Murchison Gold Province
Scorpion Minerals Limited (ASX: SCN) has taken a decisive step to bolster its presence in Western Australia's prolific Murchison Gold Province by entering into a binding farm-in and joint venture agreement with E79 Gold Mines Ltd (ASX: E79). This agreement enables Scorpion to earn up to a 70% interest in the Jungar Flats Gold Project through staged expenditure of $3 million over five years, including a $100,000 cash payment.
The deal significantly expands Scorpion's landholding to approximately 1,600 square kilometres, combining its 100% owned Pharos Project with the adjacent Jungar Flats tenure. This consolidated position makes Scorpion the largest landholder along the highly prospective Big Bell-Dalgaranga shear corridor, a structural feature known for hosting significant gold deposits.
Robust Historical Data and High-Grade Targets
Historical exploration within the joint venture tenements has been sporadic and largely shallow, yet it has yielded encouraging results. Wide-spaced RAB drilling at Middle Bore intersected supergene gold mineralisation with grades up to 1.59 g/t Au over several metres. More compellingly, diamond drilling has confirmed gold mineralisation in fresh rock at depths of around 130 metres, including intercepts of 6 metres at 1.43 g/t Au with higher-grade zones within.
Several walk-up drill targets with high-grade historic intercepts await testing. Notable results include 12 metres at 7.40 g/t Au (including 2 metres at 42.4 g/t Au) at the Lantern prospect and multiple intercepts exceeding 8 g/t Au at nearby targets. Scorpion plans to commence reverse circulation (RC) drilling in late February, aiming to systematically test these targets alongside regional soil geochemical sampling and detailed mapping.
Capital Raising to Accelerate Exploration
To fund the exploration program and meet the JV consideration, Scorpion has secured firm commitments for a $1.5 million placement at $0.02 per share, representing a 33% premium to the last traded price. Additionally, the company is converting $332,000 of trade payables and $200,000 of drilling services into equity on the same terms, subject to shareholder approval. Participants in these transactions will receive free attaching options exercisable at $0.04 within 12 months.
CEO Michael Fotios highlighted the strategic importance of the agreement, stating that the expanded footprint positions Scorpion at the forefront of exploration in a region gaining renewed attention due to recent discoveries by peers such as Spartan Resources and Caprice Resources. The imminent drilling campaign is expected to generate a steady flow of news and potentially significant exploration results.
Broader Project Context and Future Prospects
The Jungar Flats and Pharos projects straddle a 60-kilometre strike of the Big Bell-Dalgaranga shear corridor, a key structural zone with a history of multi-million-ounce gold deposits. The region also offers potential for copper, lithium, and rare metals, with Scorpion's portfolio including the Mt Mulcahy copper-zinc-cobalt-silver deposit and the Poona tungsten prospects.
Exploration to date has been fragmented and limited, with little activity over the past 25 years. Scorpion's systematic approach, backed by fresh capital and a larger land position, aims to unlock the region's potential. The company’s planned drilling and geochemical programs will test both known mineralised zones and new targets identified through recent data reviews.
Bottom Line?
As Scorpion Minerals mobilises rigs and capitalises on its expanded Murchison footprint, the coming months could prove pivotal in defining its resource potential and market trajectory.
Questions in the middle?
- Will the upcoming RC drilling confirm and extend the high-grade gold zones indicated by historic results?
- How will the joint venture with E79 evolve if exploration results warrant accelerated development?
- What impact will the capital raising and equity conversions have on shareholder dilution and market sentiment?
