Cash Outflows Persist as Scorpion Bets Big on WA Gold and Copper Assets
Scorpion Minerals reports promising near-surface high-grade gold at its Pharos Project and announces a strategic partnership with Gylden Resources to leverage processing capabilities in Western Australia.
- 35-hole RC drilling confirms significant high-grade gold mineralisation at Cap Lamp
- Strategic MOU signed with Gylden Resources for development and processing collaboration
- Ongoing exploration at Jungar Flats JV and evaluation of Mt Mulcahy copper prospect
- Pharos Project remains largest landholding along key Dalgaranga–Big Bell shear corridor
- Company reports net cash outflow with $681k cash on hand and $2.5m unsecured loan facility
Strong Drilling Results at Pharos
Scorpion Minerals Limited (ASX, SCN) has delivered encouraging results from its recent reverse circulation (RC) drilling campaign at the Pharos Project in Western Australia. The 35-hole program, covering 1,691 metres, targeted gold prospects at Cap Lamp, Olivers Patch, and Maguires North. Assays received after the quarter’s end confirmed multiple high-grade gold intercepts near surface at Cap Lamp, including standout hits such as 5 metres at 2.59 grams per tonne gold from just 6 metres depth, and a remarkable 1 metre at 9.52 grams per tonne gold attributed to clay-hosted enrichment.
Strategic Partnership with Gylden Resources
In a significant development, Scorpion entered a strategic memorandum of understanding with Gylden Resources, owners of the Kirkalocka Gold Project and a 2.1 million tonnes per annum carbon-in-leach processing plant. This alliance positions Scorpion to leverage Gylden’s technical expertise and processing infrastructure through potential toll milling, ore purchase agreements, or joint ventures. The partnership could accelerate the commercialisation of Scorpion’s gold resources within the Murchison and Yalgoo Mineral Fields, enhancing the value of its extensive landholdings along the Dalgaranga–Big Bell shear corridor.
Expanding Exploration Footprint
Beyond Pharos, Scorpion is advancing its Jungar Flats joint venture with E79 Gold Mines, aiming to earn a 70% stake by investing $3 million over five years. This project complements Pharos geographically and geologically, creating a contiguous 1,600 square kilometre exploration portfolio along a highly prospective shear corridor. Field reconnaissance and heritage surveys are underway to pave the way for future drilling and airborne magnetic surveys.
Mt Mulcahy Copper Prospect Under Review
Scorpion continues to evaluate strategic options for its Mt Mulcahy copper prospect, which hosts a JORC-compliant resource of 647,000 tonnes grading 2.4% copper, 1.8% zinc, and notable silver and cobalt credits. The deposit lies within a volcanogenic massive sulphide horizon extending over 13.5 kilometres, largely untested at depth. With copper markets strengthening, unlocking value from Mt Mulcahy remains a priority.
Financial Position and Outlook
During the quarter, Scorpion reported a net cash outflow from operations of $541,000, ending with $681,000 in cash and an unsecured loan facility of $2.5 million, of which $1.275 million is drawn. Payments to related parties totaled $25,107, primarily for directors’ fees and company secretarial services. CEO Michael Fotios highlighted the company’s growing strategic position and upcoming drilling plans, signaling a busy period ahead as Scorpion seeks to convert exploration success into development opportunities.
Bottom Line?
Scorpion’s latest drilling and strategic moves set the stage for a pivotal phase in unlocking value across its WA gold and base metals portfolio.
Questions in the middle?
- How will the partnership with Gylden Resources influence Scorpion’s timeline to production?
- What are the next steps and expected timelines for follow-up drilling at key targets like Lantern and Candle?
- How does Scorpion plan to finance ongoing exploration and development given current cash flows and loan facilities?
