How Scorpion Minerals’ Old Prospect Deal Could Unlock 21,600 Ounces of Gold

Strategic Acquisition Strengthens Pharos Gold Project

Scorpion Minerals Limited (ASX, SCN) has taken a significant step in consolidating its position in Western Australia’s prolific Murchison gold region by securing an exclusive option to acquire the Old Prospect tenements from Ozz Resources Limited. These tenements lie within the company’s existing Pharos Gold Project, located northwest of Cue, and cover a highly prospective 5-kilometre structural corridor known as the Cap Lamp to Middle Bore trend.

The Old Prospect area boasts a JORC 2012 compliant Mineral Resource Estimate of approximately 312,400 tonnes grading 2.15 grams per tonne gold, equating to around 21,600 ounces of contained gold. Notably, 72% of this resource, or about 15,600 ounces, falls within the higher confidence Indicated category, providing a solid foundation for future development planning.

High-Grade Historical Drilling Underpins Exploration Potential

Historical drilling results from Old Prospect North and South reveal multiple high-grade intercepts, including standout hits such as 8 metres at 8.78 g/t gold and 7 metres at 9.10 g/t gold, with some intervals containing assays exceeding 30 g/t. These results highlight the potential for significant gold mineralisation within steeply dipping shear zones and carbonate-quartz veining systems.

Importantly, mineralisation remains open both along strike and at depth, suggesting that the current resource could be expanded with targeted follow-up drilling. Scorpion plans to commence an infill and extension drilling campaign early next year, focusing on a 650-metre zone at Old Prospect North and South, as well as testing down-plunge extensions.

Mining Lease Application and Processing Strategy

During the option period, Ozz Resources has agreed to proceed with a mining lease application over the tenements, advancing the regulatory groundwork for potential mining operations. This move aligns with Scorpion’s broader strategy to develop the Pharos Gold Project into a viable mining operation.

Further supporting this development pathway is a recently signed Memorandum of Understanding with Gylden Resources Pty Ltd, owner of the Kirkalocka Project and its 2.1 million tonnes per annum carbon-in-leach processing plant. This partnership offers Scorpion a valuable processing option for ore from Old Prospect, potentially accelerating the timeline to production.

Transaction Terms and Future Outlook

The option agreement includes a $100,000 option fee payable to Ozz Resources, with a one-year option period. Upon exercising the option, Scorpion will pay $2.5 million (plus GST) either in cash or fully paid ordinary shares, subject to shareholder approval. Additionally, a 1% royalty on gold produced and sold from the tenements will be payable quarterly to Ozz Resources once mining commences.

Scorpion’s CEO, Michael Fotios, emphasised the strategic importance of the acquisition, noting that it consolidates the company’s footprint along a largely underexplored shear corridor with demonstrated high-grade gold mineralisation. The company’s extensive landholding in the region, combined with its exploration and development partnerships, positions it well to unlock value from the Pharos Gold Project.

Exploration activities planned for early 2026 include detailed geological mapping, airborne magnetic surveys, and diamond drilling to test mineralisation at depth and collect samples for metallurgical assessment. These efforts aim to refine the resource and advance feasibility studies, setting the stage for potential mining operations.