S2 Resources (ASX: S2R) is an exploration company with its gaze firmly set on a big prize from a continuously replenished portfolio of projects holding early-stage assets with high growth potential.
A high percentage of S2 Resources’ recent activity has centred on its Greater Fosterville project in the Bendigo goldfields region of Victoria, which the company acquired via a tender won by its 100 per cent owned subsidiary, Southern Star Exploration.
Granting of EL7795 came with a minimum expenditure commitment of $10.4 million over the first five-year term of the licence, inclusive of a minimum $2.1-million commitment in the first two years.
As a bonus for winning the tender, S2 also inherited a substantial amount of data acquired by previous explorers over the area.
S2 was soon out conducting a 10-hole initial diamond drilling program, testing a favourable gold corridor in the Goornong area, where previous exploration identified a highly prospective corridor centred on the Goornong South prospect.
Drilling of just the first two holes – completed in late 2023 – identified multiple structural positions that will form the basis of a detailed 3D structural model.
The drill program is ongoing, with the focus remaining on the Goornong South prospect.
‘Our shareholders like the fact that we find ambitious projects that, if successful, can really move the needle,’ S2 Resources Executive Chairman Mark Bennett told Future Mining.
‘We have a pipeline of such projects, and don’t get bogged down in any one, and are extremely disciplined and surgical in how we identify, acquire, and drill them.
‘If they meet expectations, we continue to finance exploration. If not, we move to the next.’
S2 Resources bolstered its portfolio with a deal to earn 70 per cent interest in the Glenlogan project, which comprises exploration licence EL9614 in the Lachlan Fold Belt of Central New South Wales.
The Lachlan Fold Belt contains notable gold and copper deposits, including Newmont’s Cadia-Ridgeway operations, Evolution Mining’s Cowal and Northparkes mines, and Alkane’s Tomingley mine and Boda deposit.
The early main target at Glenlogan is the Shellback magnetic anomaly that was historically modelled by Rio Tinto as being at a depth of 800 metres, which, at the time, was considered too deep to be of interest.
Recent remodelling of the original source magnetic data using more advanced inversion modelling techniques has indicated that the body sourcing the Shellback anomaly could start much closer to surface, potentially in the 450–600-metre depth range.
‘The strength and shape of the anomaly is compelling, and the anomaly, as recently modelled, has never been drilled,’ says Bennett.
‘Drilling deep holes is not for the faint-hearted, but the potential size of the prize is worth the risk – especially should it be comparable to other gold–copper deposits elsewhere in the district.’
