Scorpion Minerals has taken a significant step forward with a binding option to acquire the Old Prospect gold tenements and forged strategic partnerships to advance its gold and lithium projects in Western Australia.
- Binding option agreement to acquire Old Prospect gold tenements with 21,600 oz gold resource
- Strategic MOUs signed with Gylden Resources for processing access and GreatPower for lithium funding
- High-grade gold intercepts confirmed at Cap Lamp within the Pharos Project
- Plans underway for mining lease application and expanded drilling programs
- Mt Mulcahy copper prospect development continues amid strengthening copper market
Strategic Tenement Acquisition Strengthens Gold Portfolio
Scorpion Minerals Limited (ASX – SCN) has made a decisive move to consolidate its position in the Murchison region of Western Australia by executing a binding option agreement to acquire the Old Prospect gold tenements from Ozz Resources Ltd. These tenements, located within Scorpion's 100%-owned Pharos Gold Project, contain a JORC-compliant Mineral Resource Estimate of approximately 312,400 tonnes grading 2.15 grams per tonne gold, equating to 21,600 ounces of contained gold.
The acquisition is particularly strategic as it secures tenure along the highly prospective 5-kilometre Cap Lamp to Middle Bore structural corridor, which remains largely underexplored. Historical drilling at Old Prospect has revealed high-grade mineralisation over a 650-metre strike length, with significant intercepts including grades exceeding 30 grams per tonne gold in some intervals. Ozz Resources is advancing a mining lease application over the tenements during the option period, setting the stage for potential near-term development.
Advancing Processing and Lithium Partnerships
Complementing its tenement consolidation, Scorpion has formalised strategic partnerships through memoranda of understanding (MOUs) with Gylden Resources and GreatPower. The MOU with Gylden Resources grants Scorpion access to the Kirkalocka gold processing plant, a 2.1 million tonnes per annum carbon-in-leach facility, located about 70 kilometres south of Mount Magnet. This partnership offers a practical processing solution via toll milling or joint ventures, enhancing Scorpion's pathway to production.
On the lithium front, Scorpion has entered into an MOU with Chinese battery materials manufacturer GreatPower, which includes an upfront USD 2 million payment to advance a lithium project to a JORC-compliant resource estimate of 10 million tonnes at 1.0% lithium oxide. This funding injection is expected to accelerate exploration and development activities, positioning Scorpion to capitalise on the growing demand for battery metals.
Exploration Success and Future Plans
Exploration results during the quarter reinforced the prospectivity of the Pharos Project. Reverse circulation drilling at Cap Lamp returned encouraging high-grade gold intercepts near surface, such as 5 metres at 2.59 g/t gold from 6 metres depth and 1 metre at 9.52 g/t gold from 5 metres, highlighting the potential for shallow, economically viable mineralisation. Scorpion plans to follow up with infill and extension drilling at Old Prospect, as well as diamond drilling to test mineralisation at depth.
Additional activities include detailed geological mapping, airborne magnetic surveys, and lithostructural interpretation to refine exploration targets. The company also continues to evaluate its Mt Mulcahy copper prospect, which hosts a JORC resource of 647,000 tonnes grading 2.4% copper, amid a strengthening copper market.
Financial Position and Outlook
Financially, Scorpion reported a modest net cash outflow from operating and investing activities during the quarter but maintains a healthy cash position supported by available financing facilities. The company’s funding runway is estimated to cover approximately 12 months of operations, providing a stable base to advance its exploration and development programs.
CEO Michael Fotios emphasised the company’s momentum, stating that the recent agreements and exploration successes position Scorpion as a dominant gold and lithium explorer in the Murchison region. The integration of strategic partnerships and resource consolidation is expected to underpin future growth and value creation.
Bottom Line?
Scorpion Minerals is strategically positioning itself for growth with key tenement acquisitions and partnerships, but upcoming drilling and mining lease approvals will be critical to unlocking value.
Questions in the middle?
- How will the mining lease application progress impact the timeline for Old Prospect development?
- What are the terms and conditions for subsequent funding tranches under the GreatPower lithium partnership?
- Can the high-grade gold intercepts at Cap Lamp translate into a significant resource upgrade?