- Scorpion Minerals has purchased two exploration licences from Element 25
- The tenements cover 384 square kilometres and are near its Mt Mulcahy project
- The two new tenements will be called the Pharos Project and are considered highly prospective for gold mineralisation
- On market close, Scorpion gained 10 per cent and is selling shares for 1.1¢ a share
Scorpion Minerals has purchased two exploration licences from Element 25.
Applications, E20/953 and E20/948, cover 384 square kilometres and is near Scorpion’s Mt Mulcahy project in Western Australia. The combined footprint of the project and tenements is 490 kilometres squared.
The two new tenements will be called the Pharos Project and are considered highly prospective for gold mineralisation. The company’s geologists believe there is significant potential for new gold and base metals deposits exists within the expanded area.
Scorpion has conducted an initial review of open file data and has identified a number of significant historical gold intercepts from Rotary Air Blast (RAB) drilling, which had been undertaken by previous companies.
Results include 12 metres at 7.40 g/t of gold from 44 metres, including 2 metres at 42.4 g/t and 16 metres at 3.09 g/t of gold from 0 metres, including 2 metres at 16.8 g/t of gold.
“A number of companies have held tenure in the area; however, no systematic exploration was completed over the larger project area due to fractured ownership, and changing commodities focus over time from gold to base metals and then to iron ore,” the company said.
The changes in commodities and fractured ownership have resulted in incomplete projects, particularly gold.
To purchase these tenements Scorpion will first pay $20,000 on a signing. The company will then complete due diligence.
Upon grant to each tenement, for the company to enter a 9-month option agreement to buy the tenements, Scorpion will pay $30,000 for both tenements. Within those 9 months, Scorpion will pay $150,000 to purchase 100 per cent of the tenements.
If Scorpion needs more than 9 months to purchase the tenements, it will have to pay a further $50,000, which gives the company an extra 6 months.
E25 will retain a 1 per cent net smelter return (NSR) royalty on production from either tenement.
On market close, Scorpion gained 10 per cent and is selling shares for 1.1¢ apiece at 4:11 pm AEDT.