- Key joint venture exploration licences granted in WA
- Detailed aeromagnetic survey completed
- First wave of aircore drilling to commence in July
- Extensive undercover continuation of a major shear zone
S2 Resources (ASX:S2R) has been granted two large exploration licences by the WA Department of Mines, Petroleum and Exploration (DMPE).
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The permits are a key part of the Jillewarra Joint Venture (JJV) in which S2R is earning an initial 51% interest from private company Black Raven Mining (BRM).
Drilling environmental approval applications are being lodged this week with a view to starting drilling in July.
The two exploration licences cover 35 kilometres of strike of the Karbah shear zone (KSZ), considered to be the continuation of the same structure that hosts Westgold’s 2.4 million ounce Big Bell gold mine and Ramelius Resources’ 2.9 million ounce Dalgaranga gold operations.
Together with an additional 25 kilometres of strike held as an 100% S2 exploration licence application immediately to the north, the company controls 60 strike kilometres of the KSZ, which is almost entirely undercover and effectively unexplored.
An initial envisaged 30,000m aircore program, comprising a nominal 300 holes on several very wide spaced lines has been planned.
Executive chairman, Mark Bennett, said this is a “sighter” program, aimed at getting an initial understanding of the geology and structure, the depth of cover, and the presence and extent of any anomalous levels of gold and pathfinder elements.
It is the first of several programs required to guide more closely spaced and/or deeper future drilling.
Mr Bennett said given the areal extent of the target zone and the extremely wide spacing and arbitrary siting of the initial drilling, the company expects that it may take several campaigns before it can zero in on any hotspots.
S2 entered into a farm-in agreement with BRM in 2020 and the original terms of the agreement have been amended in recognition of the delays associated with the negotiation and signing of the HPA.
S2 has to spend $5 million by 2 October 2026 to earn a 51% interest. As of the end of May 2026, S2 had spent $3.8 million on granted tenure covering other parts of the project where it has undertaken drilling over the past several years.
The company told shareholders it anticipates that the initial reconnaissance aircore drilling that it intends to undertake in the period between granting of the ELA’s and the earn-in deadline will be sufficient to meet the earn-in requirement.
S2R is up 7.14% to 6.0¢. Mkt cap $25.36M.
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