Key highlights

  • Scorpion Minerals (ASX:SCN) shares fell 11.11% to $0.016 during the Trading session on 20 October 2026.
  • The Quarterly Report dated 31 July 2026 recorded an A$2 million option fee from Andel Resources over the Old Prospect tenements.
  • An initial Exploration Target of 1.0 to 3.0 million tonnes at 1.5 to 2.0 g/t gold was reported for Old Prospect.

Shares of Scorpion Minerals Limited (ASX:SCN) fell 11.11% to $0.016 during the trading session on 20 October 2026. Separately, on 31 July 2026, the company released its Quarterly Activities Report for the quarter ended 30 June 2026. That report covers an option agreement with Andel Resources, a new Exploration Target and planned work in Western Australia’s Murchison region. The share price move and the report relate to different dates and are not linked in this article.

About Scorpion Minerals Limited

Scorpion Minerals is an ASX-listed explorer with a portfolio in the Murchison region of Western Australia. Its 100%-owned Pharos Project covers about 900 square kilometres roughly 60 kilometres north-west of Cue and is described as prospective for gold, lithium, tungsten, platinum group elements, nickel-copper, iron ore and base metals.

The company says it has assembled the largest landholding along the Dalgaranga–Big Bell shear corridor, which it describes as largely untested by exploration.

Option agreement with Andel Resources

Scorpion entered a binding option agreement giving Andel Resources the exclusive right to enter a Right-to-Mine agreement over the Old Prospect tenements within Pharos. Andel paid an option fee of A$2 million plus GST. The option can be exercised for one year from execution, subject to conditions precedent.

Andel is a related party of Gylden Resources, the owner of the Kirkalocka Processing Plant, which is about 200 kilometres from Old Prospect. Under the structure described, Andel would fund mining, hauling and processing, with profits shared 50/50. Scorpion also granted Andel three tranches of 10 million unlisted Options exercisable at $0.05.

Old Prospect resource and Exploration Target

Old Prospect already holds a combined Mineral Resource Estimate of 312,400 tonnes at 2.15 g/t gold for 21,600 ounces, of which 15,600 ounces are in the Indicated category. During the quarter the company released an initial Exploration Target of 1.0 to 3.0 million tonnes at 1.5 to 2.0 g/t gold, based on 61 reverse circulation holes and four diamond holes.

The report states that the Exploration Target is conceptual in nature, that there has been insufficient exploration to estimate a Mineral Resource, and that it is uncertain whether further exploration will result in one.

Tenement path and exploration programs

OZZ Resources lodged a Mining Lease Application over the Old Prospect tenements, and Scorpion holds an option to acquire a 100% interest from OZZ, which OZZ shareholders approved in April 2026. A drilling program of 56 holes, about 5,000 metres of Reverse Circulation Drilling and 2,000 metres of diamond tails, is planned to inform an updated resource and scoping study.

Scorpion also secured co-funding of up to A$196,505 under the Western Australian Exploration Incentive Scheme for a 37,200 line-kilometre airborne magnetics and radiometrics survey over 1,850 square kilometres.

Sector backdrop

Small Western Australian gold explorers commonly rely on partnerships, toll-processing arrangements and government co-funding to advance projects, because building a standalone processing plant requires substantial capital. The Murchison region has a long history of gold mining and several established processing facilities.

Gold exploration outcomes remain dependent on drilling results, access to processing capacity and the gold price.

Risks shareholders should weigh

The Andel option is exercisable only if conditions precedent are satisfied or waived, so a Right-to-Mine agreement has not yet been signed. The Old Prospect tenements are subject to a Mining Lease Application and an option over the OZZ interest, and approvals are not guaranteed.

The Exploration Target is conceptual, and the existing resource is small at 21,600 ounces. Funding the exploration program and any issue of options or shares may affect existing shareholders. The company trades at a low price, and share price moves such as the 11.11% fall on 20 October 2026 can be large in percentage terms.

What’s next

The report lists the following focus areas: an updated Old Prospect open pit optimisation, infill and extension drilling along the Old Prospect to Middle Bore trend, diamond drilling to test down-plunge mineralisation, and about 1,500 metres of regional drilling. Mining studies, including an updated scoping study, are also under way.