Scorpion Minerals Secures Largest Murchison Gold Landholding, Raises $1.75M to Drill

Strategic Expansion in Murchison

Scorpion Minerals Limited (ASX: SCN) has significantly bolstered its presence in Western Australia's Murchison region by entering a farm-in and joint venture agreement with E79 Gold Mines Ltd (ASX: E79). This deal expands Scorpion’s landholding to 1,600 square kilometres, combining its 924km² Pharos Project with E79’s adjacent Jungar Flats Project. The combined tenure now represents the largest contiguous landholding along the Dalgaranga–Big Bell shear corridor, a highly regarded gold exploration address that remains largely underexplored.

CEO Michael Fotios highlighted the strategic importance of this acquisition, noting that the Dalgaranga–Big Bell corridor hosts several recent high-grade gold discoveries, including Spartan Resources’ Dalgaranga Project and Caprice Resources’ Island Gold Project. The expanded footprint positions Scorpion to capitalize on this emerging gold hotspot with a cohesive exploration strategy.

Funding and Drilling Plans

During the March quarter, Scorpion successfully raised $1.75 million (before costs) through placements and a drill-for-equity arrangement with its drilling contractor. This capital injection is earmarked to accelerate exploration activities, with reverse circulation (RC) drilling set to commence imminently at multiple historic high-grade targets, including Cap Lamp, Lantern, and Candle. These targets have been refined through recent technical work and heritage clearances, enabling access to previously underexplored zones.

The company’s readiness to deploy drilling rigs so soon after securing funding reflects a focused approach to unlocking value from its extensive landholding. Scorpion plans a steady flow of drilling results over the next six months, aiming to build on the momentum in a strengthening gold price environment.

Mt Mulcahy Copper Prospect: A Parallel Opportunity

Beyond gold, Scorpion continues to evaluate its 100% owned Mt Mulcahy copper prospect within the Pharos Project. The prospect hosts a JORC-compliant resource of 647,000 tonnes grading 2.4% copper, along with zinc, cobalt, silver, and gold credits. The copper-rich volcanogenic massive sulphide (VMS) horizon extends over 13.5 kilometres and remains open at depth and along strike, suggesting significant upside potential.

Exploration to date has been limited to shallow drilling, with deeper targets yet to be tested. Scorpion is actively assessing options to unlock value from Mt Mulcahy amid a strengthening copper market, with plans to recommence fieldwork and provide further updates soon.

Corporate Developments and Financial Position

In addition to operational progress, Scorpion appointed Peter Koller as a Non-Executive Director during the quarter. Koller brings over 35 years of experience in finance and capital markets, including expertise in commodities trading and capital raising, which is expected to support Scorpion’s growth ambitions.

Financially, the company reported a net cash increase of approximately $1.25 million for the quarter, ending with $1.25 million in cash and access to a $2.5 million unsecured loan facility. Operating and investing cash outflows were managed prudently, reflecting ongoing exploration expenditure and the strategic acquisition of the Jungar Flats JV interest.

Board changes also included Michael Kitney transitioning to Non-Executive Chairman following the resignation of Bronwyn Barnes, bringing seasoned leadership with a track record of guiding exploration companies through successful takeovers.

Outlook

With a commanding land position in a prolific gold corridor, fresh capital, and drilling about to commence, Scorpion Minerals is well positioned to advance its exploration pipeline. The coming months will be critical as drilling results emerge, potentially reshaping the company’s resource base and market profile. Meanwhile, the Mt Mulcahy copper asset offers a complementary avenue for value creation in a buoyant base metals market.