Scorpion Minerals Secures $2M Option Fee and Expands Old Prospect Gold Target

Right-to-Mine Agreement Accelerates Old Prospect Development

Scorpion Minerals (ASX:SCN) has taken a decisive step towards production at its Old Prospect gold tenements by securing a $2 million option fee from Andel Resources. This payment grants Andel the exclusive right to enter into a Right-to-Mine agreement to manage and fund mining, hauling, and processing of gold ore from the tenements under a 50/50 profit share arrangement. Crucially, Andel is affiliated with Gylden Resources, operators of the Kirkalocka Processing Plant located 200km from Old Prospect, providing a ready-made processing solution that could significantly reduce upfront capital expenditure and accelerate timelines.

Exploration Target Points to Substantial Gold Potential

Building on an existing Mineral Resource Estimate of 312,400 tonnes at 2.15 g/t Au containing 21,600 ounces of gold, Scorpion released an initial Exploration Target for Old Prospect ranging from 1.0 to 3.0 million tonnes grading 1.5 to 2.0 g/t Au. This target, conceptual in nature, reflects extensive drilling data including over 60 reverse circulation holes and 4 diamond drill holes, alongside detailed 3D modelling. The mineralisation extends along a 700-metre strike and remains open at depth, underpinning the company's confidence in resource growth potential as it prepares for a comprehensive drilling program to infill and extend the known zones.

Mining Lease Application and Drilling Campaign Underway

OZZ Resources, holding the Old Prospect tenements, has lodged a Mining Lease Application, paving the way for Scorpion to exercise its binding option to acquire 100% ownership. Scorpion plans an extensive drilling campaign comprising 56 holes, including reverse circulation and diamond tails, to depths of up to 170 metres. These results will feed into an updated Mineral Resource Estimate and a mining scoping study, with further mining studies already in progress. This activity aligns with Scorpion's strategy to move from exploration to production readiness swiftly.

Regional Exploration and Government Support Enhance Project Scope

Scorpion's Pharos Project, encompassing 900 square kilometres in Western Australia's Murchison region, remains a focal point for gold and base metal exploration. The company has secured co-funding of up to $196,505 from the WA Government’s Exploration Incentive Scheme for a 37,200 line-kilometre airborne magnetic and radiometric survey over Pharos and the Jungar Flats JV tenements. This survey, combined with detailed lithostructural analysis and high-resolution satellite imagery, aims to identify new targets along the Dalgaranga–Big Bell shear corridor, where Scorpion holds the largest land position. The Jungar Flats JV itself offers potential for gold, copper, and lithium mineralisation, with Scorpion earning up to 70% interest through farm-in agreements.

Mt Mulcahy Copper Prospect Remains a Strategic Asset

Beyond gold, Scorpion continues to explore options to advance its Mt Mulcahy copper prospect, which hosts a JORC resource of 647,000 tonnes at 2.4% copper, 1.8% zinc, and 20 g/t silver. The Volcanogenic Massive Sulphide horizon extends over 13.5 kilometres and remains largely untested below 300 metres depth. Scorpion is assessing pathways to unlock value amid a strengthening copper market, with further strategic updates anticipated.

Financial Position Supports Upcoming Work Programs

Scorpion ended the quarter with $1.7 million in cash and an additional $1.225 million in unused unsecured loan facilities, positioning the company with approximately 5.8 quarters of funding at current expenditure levels. Operating and corporate costs remain tightly managed, with payments to related parties limited to $50,000 for directors’ fees and associated expenses. The company's financial footing supports its planned drilling, mining studies, and exploration initiatives across its portfolio.