Scorpion Minerals Finds Larger Old Prospect Gold Pathway

Old Prospect Optimisation Expands Contained Gold

Scorpion Minerals Limited (ASX:SCN) has more than doubled the gold captured in its conceptual mining inventory at the Old Prospect deposit in Western Australia’s Murchison region. The updated open-pit optimisation identifies 314,565 tonnes at 1.60 grams per tonne gold for 16,159 ounces from separate North and South pits, using a gold price assumption of A$6,000 per ounce.

That compares with the April 2024 scoping study, which outlined 82,224 tonnes at 3.0g/t for 7,964 ounces over an 18-month production schedule at A$3,000/oz. The newer work also consolidates the concept from three northern pits and one southern pit into two shells located roughly 100 metres apart. The filing describes the result as 203% more contained gold; on the reported figures, 16,159 ounces represents about 203% of the earlier inventory, or an increase of approximately 103%.

High Gold Price Assumption Drives the Larger Shells

The optimisation was designed to test reasonable prospects for eventual economic extraction from the existing JORC 2012 Mineral Resource, rather than establish an ore reserve. It applies a 0.3g/t lower cut-off within the shells, a 13.5:1 strip ratio, 15% mining dilution, 90% mining recovery and 92% processing recovery. Processing and haulage assumptions are based on the Kirkalocka plant, including surface haulage of A$30 per tonne of ore and processing costs ranging from A$40 to A$50 per tonne depending on material type.

The stronger gold-price assumption is central to the expanded pit inventory. The existing Old Prospect North and South resource totals 312,395 tonnes at 2.15g/t for 21,632 ounces, with 15,599 ounces, or about 72%, classified as Indicated. That provides a relatively high-confidence base for the next studies, although the optimisation captures about 75% of the resource and includes roughly 85% Indicated and 15% Inferred material.

Kirkalocka Option Provides a Processing Route

Scorpion’s development pathway includes a potential toll-treatment arrangement at the Kirkalocka processing plant, owned by Gylden Resources. Andel Resources, a related party of Gylden, received an option after paying Scorpion a A$2 million fee in June 2026. The arrangement is intended to provide a route into a Right-to-Mine Agreement for the Old Prospect tenements, subject to the option and subsequent agreement process. It follows the company’s A$2 million mining option, which earlier coverage said gave Andel exclusive rights to mine and process the tenements.

The mining lease application for the project, identified in the announcement as M20/568, has progressed to the Right to Negotiate process. Scorpion says it will now move into scoping and mining studies, alongside infill and extension drilling, an updated resource estimate, heritage work, flora and fauna studies, and a mining proposal.

Drilling Keeps the Exploration Case Alive

Old Prospect remains open along roughly 650 metres of strike and down dip or plunge. Historic results include 7 metres at 9.10g/t from 81 metres, including 1 metre at 56.1g/t, and 8 metres at 7.98g/t from 9 metres, including 1 metre at 32.4g/t. Scorpion also points to a broader Cap Lamp to Middle Bore mineralised trend extending for about 5 kilometres.

The company’s next exploration program is intended to test that potential with RC drilling from Old Prospect towards Middle Bore, diamond drilling at depth, regional follow-up drilling of about 1,500 metres, mapping and airborne magnetics. The work builds on the Old Prospect exploration target, which earlier coverage said outlined a potential 1.0 million to 3.0 million tonnes at 1.5g/t to 2.0g/t gold. That target remains an exploration concept rather than part of the current Mineral Resource Estimate.

Studies Must Test Economics Beyond the Optimisation

The headline ounces come with several unresolved technical and economic questions. No recovery test work is available from Old Prospect, density values were assigned from local knowledge, and the resource has not undergone an external audit. The optimisation also assumes a high A$6,000/oz gold price, while the 2024 study used A$3,000/oz and carried an estimated accuracy of plus or minus 50%.

Scorpion’s immediate task is therefore to convert a favourable shell study into evidence on recoveries, dilution, mining costs, geotechnical conditions and toll-treatment terms. The next meaningful markers will be the scoping and mining studies, updated drilling and resource work, and progress from the Right to Negotiate process towards an executable mining and processing agreement.