S2 Resources’ Exploration Advances Raise Stakes Amidst Funding and Execution Risks

Exploration Momentum Builds at Warraweena

S2 Resources has completed a detailed gravity survey over the Warraweena project in northern New South Wales, identifying three distinct concealed target styles beneath cover. These include bullseye gravity highs coincident with reversely polarised magnetic anomalies interpreted as potential mafic or dense intrusions, possibly hosting magmatic nickel-copper sulphides or porphyry copper-gold mineralisation. Additional gravity highs suggest potential volcanogenic massive sulphide (VHMS) style base metal targets and a broad gravity high that could represent a Cobar-style copper-zinc-lead-silver system. These targets are untested and will be the focus of upcoming diamond drilling in 2025.

West Murchison Soil Sampling Confirms Multi-Element Anomalies

In Western Australia, soil sampling at the West Murchison nickel-copper-PGE project has delineated several large copper-nickel-platinum-palladium-gold anomalies over major crustal structures and interpreted intrusions. Notably, the Woodrarung and Aubrey South targets exhibit extensive copper anomalies associated with significant nickel, chrome, and precious metal anomalism. The Yalgamine target features a 3-kilometre-long multi-element anomaly coinciding with an interpreted intrusion, reminiscent of the early-stage signatures seen at the Nova deposit discovered by the S2 team. These results underscore the prospectivity of the region for magmatic nickel-copper and precious metals mineralisation.

Glenlogan Drilling Highlights Porphyry Copper-Gold Potential

At the Glenlogan copper-gold project in New South Wales, S2’s first diamond drill hole intersected an unmineralised alkaline gabbroic diorite intrusion but revealed subtle copper and gold anomalism in late quartz diorite porphyry dykes. Assays show elevated copper (200-600ppm) and gold (10-30ppb) in the lower 300 metres of the hole, accompanied by pathfinder elements such as bismuth and tellurium. Petrographic analysis confirms disseminated chalcopyrite associated with hydrothermal alteration, consistent with porphyry copper mineralisation styles. A Tensor Induced Polarisation and Magnetotelluric geophysical survey is underway to identify resistive and chargeable zones that may indicate mineralised intrusions nearby.

Expanding Victorian Gold Portfolio with Valkea Resources

S2 has entered an earn-in agreement with Valkea Resources to acquire up to 80% interest in three new gold projects in central Victoria: Silverspoon, Yuengroon, and Ballarat West. These projects lie within the prolific Victorian Goldfields and complement S2’s existing Greater Fosterville project. Early exploration at Yuengroon has identified district-scale gold-arsenic anomalies, including the 3-kilometre-long O’Connors trend and the Golden Jacket anomaly near historic mines. Follow-up drilling is planned to test these targets. Meanwhile, soil sampling and IP geophysics have recommenced at Greater Fosterville, focusing on the Rasmussens target and potential extensions of known anomalies.

Financial Position and Outlook

As at 31 December 2024, S2 Resources held A$3.47 million in cash, following A$1.2 million in operating expenditure during the quarter. The company plans to invest approximately A$1.5 million in exploration activities in the coming quarter, underpinning its aggressive growth strategy. S2 also holds significant equity stakes in Valkea Resources (44.6%) and Trinex Minerals Ltd (2.1%), providing additional exposure to exploration upside. The company’s capital structure includes 452.9 million ordinary shares and 46 million unlisted options, which if exercised, could inject A$10 million in funding.

Overall, S2 Resources is advancing multiple high-potential projects across Australia and Finland, leveraging both in-house exploration and strategic partnerships. The combination of new geophysical targets, encouraging geochemical anomalies, and ongoing drilling programs positions the company well for potential discoveries in 2025.