Scorpion Minerals Advances Murchison Gold and Copper Projects with Old Prospect Acquisition

Old Prospect Acquisition Bolsters Murchison Footprint

Scorpion Minerals Limited (ASX:SCN) has taken a decisive step towards consolidating its district-scale presence in the Murchison by exercising its option to acquire the Old Prospect gold tenements from Ozz Resources Ltd (ASX:OZZ). The tenements host a combined JORC-compliant Mineral Resource Estimate of 312,400 tonnes grading 2.15 g/t Au, equivalent to 21,600 ounces of gold, with 72% classified as Indicated, signalling a relatively high level of confidence in the deposit.

The acquisition, approved unconditionally by OZZ shareholders post-quarter, includes tenements P20/2318 and PLA20/2516 along the highly prospective 5km Cap Lamp to Middle Bore structural corridor. This corridor remains lightly explored despite historic drilling that intersected significant mineralisation, including high-grade intercepts such as 8m at 8.78 g/t Au and 7m at 9.10 g/t Au. Scorpion plans to undertake a focused 7,000-metre drilling program combining 5,000 metres of reverse circulation and 2,000 metres of diamond tails to infill and extend mineralisation to depths of 170 metres, aiming to upgrade the resource and support an updated mining scoping study.

This move builds on Scorpion’s existing Pharos Project, which now spans approximately 900 square kilometres, making it the largest landholder along the Dalgaranga–Big Bell shear corridor. The acquisition and planned drilling campaign are expected to unlock significant growth potential within this underexplored gold belt. The company has also lodged a mining lease application for the tenements, progressing the groundwork for development. These developments are part of a broader strategy to consolidate tenure and systematically explore the region’s gold potential, as previously outlined in the mining lease application and drilling plans.

Strategic Partnership with Gylden Resources Enhances Processing Options

Complementing the Old Prospect acquisition, Scorpion executed a strategic memorandum of understanding with Gylden Resources, owners of the Kirkalocka Gold Project and its 2.1 Mtpa carbon-in-leach processing plant. Located roughly 70 kilometres south of Mount Magnet, this facility offers a vital processing solution for Scorpion’s regional gold resources, including Old Prospect.

Discussions are advancing to formalise access arrangements, potentially via toll milling, ore purchase agreements, or joint ventures. Additionally, Scorpion has secured three exploration licences covering 111 square kilometres southeast of the Kirkalocka plant, expanding its regional footprint along prospective greenstone belts. This partnership could accelerate development timelines and reduce capital intensity by leveraging existing infrastructure. The strategic alliance echoes prior collaborations and reflects Scorpion’s intent to integrate regional assets effectively, as seen in the strategic MOU with Gylden Resources.

Expanding Exploration with Airborne Geophysics and Regional Targets

Scorpion is ramping up exploration with a planned 37,200 line-kilometre airborne magnetic and radiometric survey covering 1,850 square kilometres across the Pharos Project and Jungar Flats JV tenements. The survey, approved for co-funding under the Western Australian government’s Exploration Incentive Scheme, aims to infill existing data and refine lithostructural interpretations to identify new targets.

Following the survey, detailed geological mapping and interpretation will guide approximately 1,500 metres of regional reverse circulation drilling targeting key prospects. The Jungar Flats JV, where Scorpion is earning up to 70% interest from E79 Gold Mines Ltd (ASX:E79), adds another 700 square kilometres adjoining Pharos, creating a contiguous 1,600 square kilometre landholding along the Dalgaranga–Big Bell shear corridor. This corridor has seen recent high-grade discoveries nearby, underscoring the potential for new gold deposits within Scorpion’s tenure.

Mt Mulcahy Copper Prospect Offers Significant Upside

Beyond gold, Scorpion’s Mt Mulcahy copper prospect remains a key strategic asset amid a strengthening copper market. The South Limb Pod zone hosts a JORC 2012 resource of 647,000 tonnes grading 2.4% copper, 1.8% zinc, 0.1% cobalt, and 20 g/t silver. The mineralised VMS horizon extends 13.5 kilometres and remains open along strike and at depth, with historic drilling limited to shallow depths in many areas.

Scorpion is evaluating multiple strategies to unlock value from Mt Mulcahy, considering the geological similarities to the prolific Golden Grove mine, where deposits extend to depths exceeding 2,000 metres. The company’s approach includes further exploration to test deeper targets and assess metallurgical characteristics, although detailed plans remain forthcoming.

Financial Position and Corporate Developments

Financially, Scorpion reported net cash outflows from operating and investing activities during the quarter, offset partially by $355,000 raised through option exercises. Cash on hand stood at a slim $3,000 at quarter’s end, supplemented by an unsecured $2.5 million loan facility with $1.275 million drawn. Director fees remain deferred, reflecting ongoing cost control measures.

On the lithium front, the company is progressing discussions with multiple parties following a memorandum of understanding with Chinese battery materials manufacturer GreatPower Nickel and Cobalt Materials Co. Ltd. These talks remain confidential and exploratory, highlighting Scorpion’s intent to diversify its portfolio amid strengthening lithium markets.