Scorpion Minerals Strikes Major Gold Discovery Transforming Portfolio

Scorpion Minerals: High-Grade Gold Discovery Positions Company as Murchison Region Leader

Scorpion Minerals Limited (ASX:SCN) has delivered compelling results from its Pharos Gold Project, complemented by a strategic partnership with Gylden Resources that provides crucial processing infrastructure access. The latest drilling results confirm significant shallow, high-grade gold mineralisation at Cap Lamp, with standout intercepts including 5m @ 2.59 g/t Au from just 6m depth and an exceptional 1m @ 9.52 g/t Au from 5m.

These results, combined with the company’s expanded 1,600km2 landholding along the highly prospective Big Bell-Dalgaranga shear corridor, establish Scorpion as a major consolidator in one of Western Australia’s most promising gold regions. Furthermore, the Scorpion Minerals gold discovery demonstrates the potential for multiple high-grade zones within this historically productive geological system.

Strategic Partnership Unlocks Processing Infrastructure Access

The memorandum of understanding with Gylden Resources represents a game-changing development for Scorpion’s gold assets. Gylden, backed by global investment firm Värde Partners, owns the 2.1Mtpa CIL processing plant at Kirkalocka, located approximately 70km south of Mount Magnet.

This strategic alliance provides Scorpion with multiple pathways to commercialise its gold resources through toll milling, ore purchase agreements, or joint venture arrangements. In addition, the partnership’s value extends beyond processing access.

Scorpion has secured three additional exploration licences covering 111km2 southeast of the Kirkalocka plant, described by management as “one of the last genuinely underexplored areas in the Murchison region.” This acquisition strengthens Scorpion’s regional consolidation strategy whilst providing Gylden access to Scorpion’s technical expertise and regional knowledge.

“The collaboration with Gylden reflects a strong alignment of interests, including confidence in Scorpion’s significant 1600km2 landholding in the Murchison and wealth of technical expertise and regional exploration knowledge,” commented CEO Michael Fotios. “The Kirkalocka plant presents a valuable processing solution for Scorpion – providing opportunities to expedite the future commercialisation of the Company’s gold assets.”

Cap Lamp Drilling Results Confirm Near-Surface Gold Potential

The recent reverse circulation drilling campaign at Cap Lamp has validated the area’s high-grade potential with multiple significant intersections. These results showcase the exceptional nature of the Scorpion Minerals gold discovery across several drill holes.

These results are particularly significant when considered alongside historic intercepts in the immediate area, including 5m @ 8.28 g/t Au from 9m and 1m @ 22.9 g/t Au. The shallow nature of the mineralisation enhances the potential for low-cost mining operations, with the highest-grade intercept occurring at just 5m depth.

Cap Lamp sits within a 5-kilometre-long corridor extending to the Middle Bore prospect, positioned on secondary splays off the main Big Bell-Dalgaranga shear system. Moreover, the structural complexity suggests multiple orientations of gold mineralisation, indicating significant exploration upside across the broader corridor.

Understanding Gold Deposits: Why Structure Matters

Gold deposits like those being targeted at Pharos form when gold-bearing fluids migrate along structural corridors during regional deformation events. These systems typically occur in second and third-order splays branching from major shear zones, exactly the geological setting observed at Cap Lamp.

The significance for investors lies in the predictable nature of these systems. Once the structural controls are understood, exploration teams can systematically target similar settings across the broader tenement package. The Big Bell-Dalgaranga shear corridor has historically produced over 2.4 million ounces of gold, demonstrating the mineral endowment of this structural system.

Key Geological Concepts

Shear Zone: Zones of intense deformation that act as conduits for gold-bearing fluids

Structural Controls: Geological features that influence where gold deposits form

Secondary Splays: Branch structures off main shear zones that often host high-grade mineralisation

These geological characteristics directly support the potential expansion of the Scorpion Minerals gold discovery beyond the initial Cap Lamp results.

Planned Exploration Programme Targets Multiple High-Grade Prospects

Scorpion’s upcoming exploration campaign will test several historic high-grade targets across the Pharos project, with particular focus on the Lantern, Candle, and Candle North prospects. Historical results at these locations include exceptional intercepts that validate the regional potential.

Notable historic intercepts include:

• • 8m @ 10.99 g/t Au from 44m at Lantern (including 2m @ 42.4 g/t Au)

• • 7m @ 8.33 g/t Au from 4m at Lantern (including 3m @18.0 g/t Au)

• • 14m @ 3.51 g/t Au from surface at Lantern (including 2m @ 16.8 g/t Au)

The planned 1,500-metre follow-up drilling programme will be supported by detailed geological mapping, airborne magnetic surveys, and structural interpretation. This systematic approach aims to define drill-ready targets across the company’s extensive tenement holding.

Upcoming Key Milestones

• • Follow-up RC drilling programme (Q4 2025)

• • Detailed geological mapping completion

• • 50m line-spaced airborne magnetic survey

• • Structural interpretation and target generation

Strong Financial Position Supports Aggressive Exploration

The company has strengthened its financial position through early option exercise commitments totalling $701,000 from 17.5 million unlisted options. Significantly, all directors are participating in the exercise, demonstrating strong board confidence in the company’s prospects.

The option exercise price of $0.04 represents an 8.1% premium to the last traded price, providing additional validation of director confidence. These funds will be deployed directly toward ongoing exploration activities across Scorpion’s Murchison gold projects.

The company is also receiving “significant inbound interest from potential strategic lithium groups” regarding partnering opportunities in Western Australia. Additionally, management is reviewing options for the Mt Mulcahy Cu-Zn-Ag-Au deposit through joint ventures or securitisation.

Investment Thesis: Regional Consolidator in Proven Gold District

Scorpion Minerals has positioned itself as the dominant landholder along the Big Bell-Dalgaranga shear corridor, with 1,600km2 of tenure covering largely untested extensions of this historically productive gold system. The combination of high-grade drilling results, strategic processing access through the Gylden partnership, and substantial regional consolidation creates multiple value catalysts.

The Scorpion Minerals gold discovery at Pharos aligns with current market preferences for low-cost, near-surface deposits. With processing infrastructure now secured through the Kirkalocka plant arrangement, Scorpion can fast-track resource development whilst maintaining exploration focus across its extensive tenement package.

Key Investment Drivers

• • Largest landholding on proven Big Bell-Dalgaranga corridor

• • Shallow, high-grade gold mineralisation confirmed at multiple prospects

• • Strategic processing access via 2.1Mtpa Kirkalocka plant

• • Strong financial position with director participation in funding

• • Systematic exploration programme targeting historic high-grade zones

Why Should Investors Follow This Company?

The Scorpion Minerals gold discovery represents a compelling opportunity in the gold exploration sector, combining proven geology with strategic infrastructure access. The company’s systematic approach to regional consolidation, evidenced by the Gylden partnership and new tenement acquisitions, demonstrates management’s understanding of creating scale in mineral exploration.

The recent drilling results validate the high-grade potential across Scorpion’s tenements, whilst the shallow depth of mineralisation enhances economic viability. With multiple prospects showing similar characteristics to the historically productive Big Bell deposit, investors are positioned to benefit from systematic exploration across a largely untested geological system.

Furthermore, the structural setting and grade continuity observed in initial drilling suggest significant potential for additional discoveries within the broader corridor. The convergence of geological success, strategic partnerships, and systematic exploration across a proven gold district creates multiple pathways for value creation.

What Makes This Discovery Unique?

Several factors distinguish the Scorpion Minerals gold discovery from typical early-stage exploration plays. The shallow depth of high-grade mineralisation significantly reduces potential mining costs, whilst the strategic processing partnership eliminates a major development hurdle.

The company’s dominant regional position along the Big Bell-Dalgaranga corridor provides multiple exploration targets within a proven gold system. Historical production of over 2.4 million ounces from this corridor validates the geological potential, whilst Scorpion’s extensive tenement package covers largely untested extensions.

The collaboration with Gylden reflects strategic thinking beyond simple exploration, positioning Scorpion for rapid advancement from discovery to production. This approach resonates with investors seeking companies that can efficiently progress gold assets through development phases.

The convergence of geological success, strategic partnerships, and systematic exploration across a proven gold district makes Scorpion Minerals a compelling story for investors seeking exposure to Western Australia’s gold potential. With processing infrastructure secured and multiple high-grade targets identified, the company appears well-positioned to build upon its initial success at Cap Lamp through continued exploration across its substantial regional tenement package.

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