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S2 RESOURCES LTD Capital/Financing Update 2024
65745_rns_2024-06-23_55386088-0883-43db-9141-7487612bb54a.pdf
Capital/Financing Update
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ASX Announcement
ASSAYS FROM LATEST HOLE RECEIVED, DISTINCT MINERALISED ZONE DEFINED AT GOORNONG PROSPECT, GREATER FOSTERVILLE PROJECT
Key Points
- Assays received for the second (SFVD0008) of two follow-up diamond drill holes at the Goornong prospect, Greater Fosterville
- Several intervals of gold mineralisation intersected
- Distinct mineralised surface dubbed the Blackadder fault identified in four holes
- The Blackadder fault is open up and down dip and along strike and represents a discrete drill target for future follow up
S2 Resources Ltd ("S2" or the "Company") advises that its wholly owned subsidiary, Southern Star Exploration Pty Ltd ("Southern Star"), has received assay results for the second of two follow-up holes at the Goornong prospect, on its 100% owned Greater Fosterville project in Victoria, Australia.
Hole SFVD0008 was the second of two follow up holes designed to test the northern strike position of mineralised intercepts in SFVD0005 and SFVD0006 but in a position 25-50 metres east of the axial plane tested by the earlier holes, to allow an assessment of not only any along strike continuity of mineralised structures, but importantly their persistence up/down dip to the east as they passed into the eastern limb of the primary anticline.
The new intercepts in hole SFVD0008 include:
- 0.6 metres @ 1.7g/t gold from 163.9 metres
- 3.4 metres @ 1.0g/t gold from 181 metres
- 3.5 metres @ 2.4g/t gold from 358.2 metres
- 0.55 metres @ 1.2g/t gold from 377.25 metres
- 0.55 metres @ 1.8g/t gold from 380.7 metres
Detailed logging of all eight holes drilled to date together with one historical hole has enabled the Company to identify what it believes is the same structure in four different holes, and these intercepts define a consistent plane comprising a fault zone dubbed the Blackadder Fault (see Figure 1).
Figure 1. Isometric block diagram looking north-northeast showing drillhole collars at surface and pierce points on the Blackadder Fault with associated gold intercepts at depth. The fault surface is assumed to extend up and down dip to adjacent fold limbs where it may steepen and becomes parallel with stratigraphic units. The orange coloured part is the flatter part which is considered more likely to dilate and thicken.
The gold intercepts associated with the Blackadder Fault comprise:
- 5.2 metres @ 7.2g/t gold from 490 metres in SFVD0005 including 0.7 metres @ 37.9g/t gold from 492.8 metres
- 2.0 metres @ 2.0g/t gold from 309 metres in SFVD0006
- 5.7 metres @ 6.4g/t gold from 344 metres in SFVD0007 including 2.15 metres @ 14.1g/t gold from 347.55 metres
- 1.5 metres @ 2.2g/t gold from 414 metres in GSDD096
Most other gold intercepts to date (see S2 ASX announcements of 6 May 2024, 26 March 2024, 15 February 2024 and 30 October 2023) appear to occur within or in the hangingwall of this structure. The Blackadder Fault has a north-northeasterly strike, dips moderately to the west and plunges gently to the north, and has so far been defined over a strike length of 260 metres and a dip extent of 45 metres (see Figures 1 and 2). Importantly, it is open both up and down dip, along strike, and down plunge.
Most of the other zones of gold mineralisation intersected in the holes drilled to date appear to be confined to the hangingwall of the Blackadder Fault. The initial reconnaissance diamond drilling has succeeded in its objective of defining a specific targetstructure, which appearsto plunge in an opposite sense to initial expectations. Future drilling at Goornong will aim to test the strike and dip extents of this zone.
Figure 2. Long projection of the Goornong area showing the six holes drilled parallel to the axial plane of the fold with the Blackadder Fault intercepts highlighted.
Goornong prospect background
Previous exploration has identified a strongly mineralised corridor centred on the Goornong South prospect where drilling during the 1990's intersected significant oxide gold mineralisation. During the last year that the exploration licence was held by Kirkland Lake (now Agnico Eagle) a series of diamond drill holes were completed to the south along strike of the historic oxide mineralisation. S2 Resources has been able to relog the Kirkland Lake core holes and use the information to interpret the stratigraphic and structural architecture of what is now interpreted to be the next parallel structure to the east of the O'Dwyers and Fosterville trends, which host the orebodies being mined by Agnico Eagle. This first drill program by S2 Resources, is testing immediately beneath and down plunge to the south of the Goornong South oxide mineralisation, testing multiple structures where they cross the main anticline that is interpreted to be the focus for mineralised fluids. Along the favourable anticline corridor any mineralised structure could refract into a favourable dilation position with the potential to form a significant high-grade trap for gold mineralisation akin to the Swan Zone (the Swan Zone, located along the Fosterville trend, had an initial Mineral Ore Reserve of 2.34Moz of gold at a grade of 49.6g/t, refer to the NI 43-101 Report dated 31 December 2018).
To effectively test forsignificant mineralisation along the Goornong South anticline trend S2 Resources is undertaking a combination of conventional across strike holes in the shallower part of the system and unconventional strike parallel holes down the axial plane of the target anticline corridor that test multiple structural positions that cross the anticline (see Figure 3). The axial plane holes are designed to test positions down plunge to the south of the oxide gold mineralisation as well as numerous other mineralised structuresintersected by the historic diamond drilling completed by Kirkland Lake, anyone which could yield a significant discovery where they refract and dilate across the fold corridor.
The strike parallel holes drilling down the axial plane will continue to 800 metres depth. This will allow these drill holes to test for multiple structural levels within the anticline corridor. It is interpreted that favourable geometry for significant mineralisation will be where structures refract into relatively flat positions across strike, where they pass through the hinge zone. Current interpretations provide for south plunging anticline hinge zones and a parallel plunge to mineralised fault intersections. Drilling is angled towards the north to provide the optimal intersection angle for south plunging shoots, with angled drilling enabling core orientation and detailed structural measurements which are vital to interpreting the three-dimensional position of structures relative to local stratigraphy and the overall architecture, such that any near misses can be interpreted for later drill follow-up.
The first pass drill program is designed to deliver a more detailed understanding of the structural and stratigraphic architecture of the Goornong South trend. The shallow drill holes beneath the oxide gold mineralisation will provide the first oriented core holes acrossthe entire width of the anticline corridor, proximal to significant gold mineralisation so as to provide critical information on the orientation and continuity of gold mineralised structures at this location. The deeper axial plane parallel drill holes are spaced to provide a better understanding of the distribution of alteration, the validity of the overall south plunging fold model, and the potential to identify a larger mineralised shoot early in the exploration program. Drilling will be a direct test of some specific target positions interpreted from previous drilling, as well as providing new information with which to vector towards targets in subsequent follow-up drill campaigns.
The broad spacing of these holes is tailored to finding a large gold deposit, so it is important to not be mesmerised by narrow high grade intercepts and to not drill too close too soon – a situation that can
result in over-drilling and overspending fortoo few ounces defined. As previously stated, it isimportant to first understand the overall three dimensional stratigraphic and structural architecture before attempting to zero in on sweet spots.
Figure 3. Schematic block model of the Goornong area showing the south plunging fold structures and the targeted fault structures intersecting anticlines. Drilling will include both across strike (conventional) testing of mineralised structures (as shown in the cross sectional slices) and along strike (non-conventional) testing of multiple structural positions within the favourable Goornong anticline trend (as shown in the long sectional slices). Drillhole positions are illustrative only and locations may vary.
Project background
S2's 100% owned subsidiary, Southern Star Exploration Pty Ltd, was announced as the winner of the highly competitive tender for the sole right to apply for an Exploration Licence (EL) over the ground surrounding Agnico Eagle's (Agnico) world class Fosterville gold mine in October 2021 (see S2 ASX announcement of 29th October 2021). The EL application was submitted in late 2021, and various Traditional Owner-related preconditions were satisfied recently (see S2 ASX announcement of 4 th July 2023). The ground was granted as Exploration Licence 7795 (EL7795) in early October (see S2 ASX announcement of 4 th October 2023), and covers an area of 394 square kilometres, extending 55 kilometres north to south, and abuts and surrounds Agnico Eagle's Fosterville mine lease. By virtue of its position, its size, and its inherent prospectivity, EL7795 is a highly strategic asset. EL7795 has a minimum expenditure commitment of A$10.4 million over the first five year term of the licence, inclusive of a minimum A$2.1 million commitment in the first two years.
As winners of the tender, S2 has also inherited a substantial amount of data acquired by previous explorers over the area, including the relatively recent exploration work undertaken by Kirkland Lake Gold (the owner of Fosterville prior to its acquisition by Agnico) on the tenement before it expired.
This data includes extensive and high quality geophysical and geochemical surveys such as gravity, induced polarisation (IP), electromagnetic (EM), seismic, magnetic and LIDAR surveys, which are being used to generate drill targets. The inheritance of such a significant amount of data represents a huge saving for the Company in terms of time and money that would otherwise be required to get it to the point of having drill ready targets for testing.
It also includes drilling data and drill core from holes drilled immediately prior to the expiry of the previous tenement, which although widely spaced and/or shallow and/or highly localised, have identified gold mineralisation in several locations. As a consequence, the Company has a range of targets at various stages of definition from early stage reconnaissance up to and including defined prospects simply requiring further drilling to determine the extent and quality of gold mineralisation at those locations.
These targets are located on a mix of Crown Land, freehold land (both broadacre farms and smaller blocks), and road reserves, which require the Company to obtain land access agreements and other relevant permits, as well as heritage clearances, before commencing exploration1 .
1 Until such time as access consents are obtained there is no guarantee that the Company will be able to access freehold property, but a substantial amount of drilling can be undertaken from roadsides.
This announcement has been provided to the ASX under the authorisation of the S2 Board.
For further information, please contact: Mark Bennett
Executive Chairman +61 8 6166 0240
Past Exploration results reported in this announcement have been previously prepared and disclosed by S2 Resources Ltd in accordance with JORC 2012. The Company confirms that it is not aware of any new information or data that materially affects the information included in these market announcements. The Company confirms that the form and content in which the Competent Person's findings are presented here have not been materially modified from the original market announcement. Refer to www.s2resources.com.au for details on past exploration results.
Competent Persons statement
Information in this report that relates to Exploration Results from Victoria is based on information compiled by Rohan Worland, who is an employee and equity holder of the Company. Mr Worland is a member of the Australian Institute of Geoscientists (AIG) and has sufficient experience of relevance to the style of mineralization and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Worland consents to the inclusion in this report of the matters based on information in the form and context in which it appears.
Information in this report that relates to Exploration Results from Western Australia, New South Wales and Finland is based on information compiled by John Bartlett, who is an employee and equity holder of the Company. Mr Bartlett is a member of the Australian Institute of Mining and Metallurgy (MAusIMM) and has sufficient experience of relevance to the style of mineralization and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bartlett consents to the inclusion in this report of the matters based on information in the form and context in which it appears.
| Hole ID | Easting(MGA) | Northing(MGA) | Elevation(m) | Dip | Azimuth | Depth (m) | DrillType |
|---|---|---|---|---|---|---|---|
| SFVD0001 | 278,054 | 5,943,150 | 146.0 | -40 | 92 | 411.9 | DD |
| SFVD0002 | 278,644 | 5,942,479 | 147.0 | -45 | 86 | 484.6 | DD |
| SFVD0003 | 278,425 | 5,942,519 | 147.8 | -42 | 346 | 664.1 | DD |
| SFVD0004 | 278,425 | 5,942,519 | 147.8 | -75 | 350 | 776.5 | DD |
| SFVD0005 | 278,467 | 5,941,672 | 148.2 | -45 | 356 | 784.3 | DD |
| SFVD0006 | 278,467 | 5,941,672 | 148.2 | -75 | 002 | 730.2 | DD |
| SFVD0007 | 278,500 | 5,941,672 | 148.2 | -60 | 002 | 477.8 | DD |
| SFVD0008 | 278,454 | 5,942,503 | 147.7 | -45 | 174 | 601.9 | DD |
Table 1: S2 Drill Collars
| Hole ID | From (m) | To (m) | Interval(m) | Au (g/t) | Hole ID | From (m) To (m) | Interval(m) | Au (g/t) | |
|---|---|---|---|---|---|---|---|---|---|
| SFVD0001 | 235.10 | 236.75 | 1.65 | 4.5 | SFVD0006 | 156.7 | 169.0 | 12.30 | 4.1 |
| SFVD0001 | 240.8 | 241.3 | 0.50 | 5.3 | including | 159 | 160 | 1.00 | 11.3 |
| SFVD0002 | 170 | 170.7 | 0.70 | 1.3 | SFVD0006 | 239 | 241 | 2.00 | 1.6 |
| SFVD0002 | 445.1 | 447.2 | 2.10 | 2.1 | SFVD0006 | 248 | 249 | 1.00 | 1.9 |
| SFVD0003 | 54 | 65 | 11.00 | 1.1 | SFVD0006 | 254 | 257 | 3.00 | 1.3 |
| SFVD0003 | 173.5 | 176 | 2.50 | 1.5 | SFVD0006 | 270 | 276 | 6.00 | 1.8 |
| SFVD0003 | 184.00 | 199.80 | 15.80 | 1.6 | SFVD0006 | 292.8 | 293.7 | 0.90 | 1.6 |
| including | 193.4 | 193.8 | 0.40 | 7.5 | SFVD0006 | 305 | 306 | 1.00 | 1.6 |
| SFVD0003 | 378.9 | 379.8 | 0.90 | 8.1 | SFVD0006 | 309 | 311 | 2.00 | 2.0 |
| SFVD0003 | 604 | 606 | 2.00 | 1.3 | SFVD0006 | 348 | 349 | 1.00 | 2.0 |
| SFVD0003 | 627 | 628 | 1.00 | 1.2 | SFVD0006 | 373 | 374 | 1.00 | 1.3 |
| SFVD0004 | 30.6 | 31.65 | 1.05 | 2.3 | SFVD0006 | 493.6 | 495 | 1.40 | 3.1 |
| SFVD0004 | 41 | 42 | 1.00 | 1.4 | SFVD0006 | 596.3 | 597.3 | 1.0 | 1.4 |
| SFVD0004 | 96.8 | 97.3 | 0.50 | 2.1 | SFVD0006 | 678 | 678.9 | 0.90 | 6.5 |
| SFVD0004 | 113 | 116 | 3.00 | 3.1 | SFVD0007 | 130.1 | 131.1 | 1 | 3 |
| SFVD0004 | 234 | 247 | 13.00 | 1.0 | SFVD0007 | 138.35 | 139.3 | 0.95 | 1.5 |
| SFVD0004 | 320 | 330 | 10.00 | 1.4 | SFVD0007 | 152.9 | 153.45 | 0.55 | 2.3 |
| including | 324.7 | 325.1 | 0.40 | 6.3 | SFVD0007 | 166 | 167 | 1 | 1.4 |
| SFVD0005 | 319 | 324 | 5.00 | 3.5 | SFVD0007 | 214.5 | 221 | 6.5 | 1.5 |
| SFVD0005 | 395 | 401.2 | 6.20 | 1.9 | including | 215.4 | 216 | 0.6 | 7.5 |
| SFVD0005 | 409.6 | 410.3 | 0.70 | 6.9 | SFVD0007 | 241 | 243 | 2 | 2.5 |
| SFVD0005 | 430 | 433 | 3.00 | 2.5 | SFVD0007 | 252.6 | 252.9 | 0.3 | 1.3 |
| SFVD0005 | 453 | 457 | 4.00 | 1.3 | SFVD0007 | 266 | 269 | 3 | 3.7 |
| SFVD0005 | 465 | 466 | 1.00 | 1.1 | SFVD0007 | 272.6 | 273.5 | 0.9 | 1.6 |
| SFVD0005 | 477 | 480 | 3.00 | 9.2 | SFVD0007 | 319.4 | 321 | 1.6 | 2.4 |
| including | 477.60 | 478.10 | 0.50 | 33.0 | SFVD0007 | 334.3 | 335.5 | 1.2 | 2.4 |
| SFVD0005 | 485 | 495.2 | 10.20 | 4.2 | SFVD0007 | 344 | 349.7 | 5.7 | 6.4 |
| including | 490 | 495.2 | 5.2 | 7.2 | including | 347.55 | 349.7 | 2.15 | 14.1 |
| including | 492.8 | 493.5 | 0.70 | 37.9 | SFVD0007 | 472.2 | 476 | 3.8 | 0.9 |
| SFVD0005 | 641 | 645.1 | 4.10 | 1.9 | SFVD0008 | 163.9 | 164.5 | 0.6 | 1.7 |
| SFVD0008 | 181 | 184.4 | 3.4 | 1 | |||||
| SFVD0008 | 358.2 | 361.7 | 3.5 | 2.4 | |||||
| SFVD0008 | 377.25 | 377.8 | 0.55 | 1.2 | |||||
| SFVD0008 | 380.7 | 381.25 | 0.55 | 1.8 |
Table 2: S2 Drill Assays (>5g/t gold grades shown in bold)
Table 3: Historic Drill Collars
| Hole ID | Easting(MGA) | Northing(MGA) | Elevation(m) | Dip | Azimuth | Depth(m) | DrillType |
|---|---|---|---|---|---|---|---|
| GSDD073 | 278,265 | 5,943,281 | 147.7 | - 84.0 | 258.1 | 69 | DD |
| GSDD081 | 278,070 | 5,943,280 | 146.2 | - 40.0 | 99.5 | 246.8 | DD |
| GSDD082 | 278,069 | 5,943,279 | 146.2 | - 55.0 | 99.5 | 261.1 | DD |
| GSDD083 | 278,068 | 5,943,279 | 146.2 | - 73.0 | 99.5 | 192.5 | DD |
| GSDD084 | 278,049 | 5,943,104 | 146.3 | - 40.0 | 99.5 | 305.6 | DD |
| GSDD085 | 278,056 | 5,942,555 | 147.1 | - 60.0 | 99.5 | 526.7 | DD |
| GSDD086 | 278,628 | 5,942,481 | 147.5 | - 51.7 | 261.2 | 443.4 | DD |
| GSDD087 | 278,628 | 5,942,481 | 147.5 | - 45.7 | 252.1 | 455.7 | DD |
| GSDD088 | 278,630 | 5,942,482 | 147.4 | - 79.2 | 73.2 | 533.4 | DD |
| GSDD089 | 278,572 | 5,941,643 | 148.9 | - 46.0 | 81.2 | 650 | DD |
| GSDD090 | 278,568 | 5,941,645 | 148.9 | - 50.7 | 259.2 | 434.2 | DD |
| GSDD091 | 277,165 | 5,940,959 | 149.0 | - 50.5 | 69.4 | 16.7 | DD |
| GSDD091A | 277,163 | 5,940,959 | 149.0 | - 48.6 | 78.2 | 402 | DD |
| GSDD094 | 278,630 | 5,942,482 | 147.4 | - 64.5 | 73.0 | 590.5 | DD |
| GSDD096 | 278,288 | 5,941,689 | 148.2 | - 55.3 | 39.8 | 1178.6 | DD |
| GSRC014 | 278,233 | 5,943,321 | 146.8 | - 50.0 | 79.1 | 54 | RC |
| GSRC028 | 278,217 | 5,943,367 | 146.5 | - 49.0 | 79.1 | 60 | RC |
| GSRC031 | 278,259 | 5,943,480 | 147.1 | - 50.0 | 253.1 | 78 | RC |
| GSRC032 | 278,208 | 5,943,315 | 146.7 | - 48.0 | 80.1 | 75 | RC |
| GSRC033 | 278,236 | 5,943,284 | 147.0 | - 49.0 | 79.1 | 67 | RC |
| GSRC038 | 278,185 | 5,943,696 | 147.0 | - 49.0 | 81.1 | 60 | RC |
| GSRC051 | 278,253 | 5,943,098 | 147.6 | - 50.0 | 78.1 | 74 | RC |
| GSRC058 | 278,216 | 5,943,269 | 146.9 | - 50.0 | 78.1 | 86 | RC |
| GSRC062 | 278,184 | 5,943,313 | 146.7 | - 50.0 | 78.1 | 98 | RC |
Level 14, 333 Collins Street, Melbourne, VIC 3000, Australia. PO Box 143 Kingsway, WA 6065, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au
| Hole ID | From (m) | To (m) | Interval(m) | Au (g/t) | Hole ID | From (m) To (m) | Interval(m) | Au (g/t) | |
|---|---|---|---|---|---|---|---|---|---|
| GSDD073 | 24 | 36 | 12.0 | 2.5 | GSRC032 | 60 | 75 | 15.0 | 1.4 |
| including | 24 | 30 | 6.0 | 4.6 | including | 72 | 75 | 3.0 | 4.1 |
| including | 28 | 30 | 2.0 | 9.3 | including | 72 | 74 | 2.0 | 5.7 |
| GSDD081 | 191.9 | 198.2 | 6.3 | 0.7 | GSRC033 | 14 | 50 | 36.0 | 1.6 |
| GSDD082 | 103.85 | 126.3 | 22.5 | 2.1 | including | 38 | 46 | 8.0 | 5.6 |
| GSDD082 | 196 | 203 | 7.0 | 0.3 | including | 40 | 44 | 4.0 | 7.5 |
| GSDD082 | 256.3 | 256.65 | 0.3 | 2.1 | GSRC038 | 18 | 28 | 10.0 | 2.5 |
| GSDD084 | 251.5 | 255 | 3.5 | 6.8 | GSRC051 | 32 | 38 | 6.0 | 2.7 |
| including | 251.95 | 254 | 2.1 | 11.2 | GSRC058 | 14 | 34 | 20.0 | 2.2 |
| GSDD084 | 281.55 | 286 | 4.5 | 1.6 | and | 16 | 18 | 2.0 | 7.9 |
| including | 281.55 | 284 | 2.5 | 2.6 | GSRC058 | 56 | 74 | 18.0 | 1.8 |
| including | 281.55 | 282.4 | 0.8 | 5.2 | including | 64 | 72 | 8.0 | 3.6 |
| GSDD088 | 213.1 | 217 | 3.9 | 1.5 | GSRC062 | 52 | 66 | 14.0 | 1.0 |
| including | 213.1 | 215 | 1.9 | 3.0 | including | 52 | 56 | 4.0 | 3.3 |
| GSDD088 | 213.1 | 214 | 0.9 | 5.0 | GSRC062 | 70 | 94 | 24.0 | 5.0 |
| GSDD088 | 448.9 | 451 | 2.1 | 2.3 | including | 88 | 90 | 2.0 | 29.4 |
| including | 449.9 | 450.6 | 0.7 | 5.9 | |||||
| GSDD090 | 80.2 | 87.7 | 7.5 | 2.3 | |||||
| including | 84.8 | 86.5 | 1.7 | 6.0 | |||||
| GSDD090 | 207.1 | 212.8 | 5.7 | 2.2 | |||||
| Including | 211.05 | 211.6 | 0.5 | 7.9 | |||||
| GSDD094 | 437 | 461.5 | 24.5 | 1.3 | |||||
| including | 438.7 | 444.4 | 5.7 | 2.0 | |||||
| and | 454 | 461.5 | 7.5 | 2.2 | |||||
| including | 460.1 | 461 | 0.9 | 6.7 | |||||
| GSDD094 | 576.5 | 576.95 | 0.5 | 6.9 | |||||
| GSDD096 | 350.2 | 363.8 | 13.6 | 1.5 | |||||
| including | 357.4 | 363.2 | 5.8 | 3.2 | |||||
| including | 360.55 | 361.45 | 0.9 | 5.7 | |||||
| GSDD096 | 383.65 | 404.85 | 21.2 | 0.9 | |||||
| including | 399.2 | 404.85 | 5.7 | 2.1 | |||||
| including | 403.85 | 404.85 | 1.0 | 6.6 | |||||
| GSDD096 | 414 | 415.5 | 1.5 | 2.2 | |||||
| GSRC014 | 50 | 54 | 4.0 | 2.3 | |||||
| including | 50 | 52 | 2.0 | 4.6 | |||||
| GSRC028 | 4 | 26 | 22.0 | 2.1 | |||||
| including | 6 | 18 | 12.0 | 3.7 | |||||
| including | 12 | 14 | 2.0 | 16.3 | |||||
| GSRC031 | 12 | 40 | 28.0 | 1.9 | |||||
| including | 32 | 36 | 4.0 | 11.0 | |||||
| including | 32 | 34 | 2.0 | 17.2 |
Table 4: Historic Drill Assays (>5g/t gold grades shown in bold)
The following Tables are provided to ensure compliance with the JORC code (2012) edition requirements for the reporting of exploration results.
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Samplingtechniques | Historic drilling from surface includes diamond core andReverse Circulation (RC). | |
| Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised industrystandard measurement tools appropriate to theminerals under investigation, such as down holegamma sondes, or handheld XRF instruments, etc).These examples should not be taken as limiting thebroad meaning of sampling. | All historical drilling data has been obtained from open filereporting, the majority which was compiled and reported byKirland Lake Gold in the EL3539 Final Relinquishment Report(2019). Data has been reviewed, appraised and integratedinto a database. Data is of sufficient quality, relevance andapplicability. | |
| All 2023-24 drilling was diamond core drilling from surfacecompleted by Deepcore Australia Pty Ltd, based out ofBendigo, Victoria. | ||
| Include reference to measures taken to ensure | No information about the historic QAQC procedures havebeen compiled. | |
| sample representivity and the appropriatecalibration of any measurement tools or systemsused | All 2023-24 core is split in half by core saw for externallaboratory preparation and analysis. | |
| Aspects of the determination of mineralisationthat are Material to the Public Report. In caseswhere 'industry standard' work has been done thiswould be relatively simple (e.g. 'reverse circulationdrilling was used to obtain 1 m samples fromwhich 3 kg was pulverised to produce a 30 gcharge for fire assay'). In other cases moreexplanation may be required, such as where thereis coarse gold that has inherent samplingproblems. Unusual commodities or mineralisationtypes (e.g. submarine nodules) may warrantdisclosure of detailed information | Historic sampling intervals were typically 0.3 to 2.0m forcore and 1 to 4m for RC. Core was typically split in half bycore saw. All samples were sent to an external laboratoryfor preparation and analysis. Based on the distribution ofmineralisation the sample size is considered adequate forrepresentative sampling.Based on the distribution of mineralisation the core samplesize is considered adequate for representative sampling. | |
| Drilling techniques | Drill type (e.g. core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic,etc) and details (e.g. core diameter, triple or | Historic drilling from surface includes diamond core andReverse Circulation (RC). Diamond core is oriented. No detailsabout hole diameter have been compiled. |
| standard tube, depth of diamond tails, facesampling bit or other type, whether core isoriented and if so, by what method, etc). | All 2023-24 drilling was diamond core from surface, HQ andNQ3 size. NQ3 core is triple tube wireline. Core orientationuses the Axis Camp Ori tool. | |
| Drill samplerecovery | Method of recording and assessing core and chip | Historic core recoveries have been compiled. No informationabout historic chip sample recoveries has been compiled. |
| sample recoveries and results assessed | 2023-24 drilling methods are selected to ensure maximumrecovery possible. | |
| Measures taken to maximise sample recovery and | No historic information about maximising sample recoveryhas been compiled. | |
| ensure representative nature of the samples | 2023-24 core recovery is collected in a set of standard Exceltemplates then transferred to the digital database. | |
| Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material. | A link between sample recovery and grade is not apparent. |
SECTION 1: SAMPLING TECHNIQUES AND DATA
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Logging | Whether core and chip samples have beengeologically and geotechnically logged to a level ofdetail to support appropriate Mineral Resourceestimation, mining studies and metallurgicalstudies. | The compilation of historic diamond core and RC drillingincludes records of lithology, alteration, structure andrecovery.All 2023-24 diamond core undergoes geotechnical andgeological logging to a level of detail (quantitative andqualitative) sufficient to support use of the data in allcategories of Mineral Resource estimation. Diamond corelogging includes records of lithology, alteration, veining,structure and recovery. |
| Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc)photography. | The compilation of historic diamond core and RC logging isquantitative and qualitative. Core photography is available.All 2023-24 core is photographed. | |
| The total length and percentage of the relevantintersections logged | The compilation of historic diamond core and RC logging iscomprehensive for all exploration results reported. S2Rgeologists and consultants have been able to relog 80% of thecore for the Goornong South prospect.All 2023-24 drill holes are logged in full. | |
| Sub-samplingtechniques andsample preparation | If core, whether cut or sawn and whether quarter,half or all core taken. | Core is split in half by core saw and one-half sampled andsubmitted to the laboratory for analysis. |
| If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry. | No non-core sampling was compiled. | |
| For all sample types, the nature, quality andappropriateness of the sample preparationtechnique. | Historic samples were submitted to reputable commerciallaboratories (OSLS Bendigo and Bureau Veritas Adelaide) thatused standard industry preparation techniques.2023-24 core samples are submitted to On Site LaboratoryServices (OSLS, Bendigo) and undergo standard industryprocedure sample preparation (crush, pulverise and split)appropriate to the sample type and mineralisation style. | |
| Quality control procedures adopted for all subsampling stages to maximise representivity ofsamples. | Historic reports note QAQC protocols but no data has beencompiled to assess the QAQC results.Full QAQC system is in place for 2023-24 core assays todetermine accuracy and precision of assays. | |
| Measures taken to ensure that the sampling isrepresentative of the in situ material collected,including for instance results for fieldduplicate/second-half sampling. | No information regarding the representativity of the historicsampling has been compiled.2023-24 core is cut to achieve non-biased samples. Noduplicate samples have been collected at this stage. | |
| Whether sample sizes are appropriate to the grainsize of the material being sampled. | Sample sizes are appropriate to the grain size of the materialbeing sampled. |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Quality of assaydata and laboratorytests | Historic core and RC samples were analysed for Au by OSLS(Bendigo) using a 25g fire assay with AAS finish (PE01S) or byBureau Veritas (Adelaide) using a 40g fire assay with AASfinish (FA001). | |
| Historic core and RC samples were analysed for a variablesuite of multi-elements by OSLS (Bendigo) using methodB010 (aqua regia digest and ICP-AES finish) or by BureauVeritas (Adelaide) by technique MA101/102 (four acid digestand ICP-AES/MS finish). | ||
| The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal. | Historic assay for Au is considered total. Multi-element assayfour acid digest are considered near-total for all but the mostresistive minerals (not of relevance). Aqua-regia digestion isconsidered partial depending on element and mineralspresent, but sulphide minerals as seen on the project arereadily and completely digestible. | |
| Core samples are submitted to OSLS (Bendigo) for analysis.Au is assayed using a 25g fire assay with AAS finish (PE01S). Amulti-element suite of 32 elements is assayed by techniqueBM020/ICP050 (1g charge by four acid digest and ICP-MSfinish). | ||
| The nature and quality of the analytical technique is deemedappropriate for the mineralisation style. Fire assay for Au isconsidered total. Multi-element assay four acid digest areconsidered near-total for all but the most resistive minerals(not of relevance). | ||
| For geophysical tools, spectrometers, handheldXRF instruments, etc, the parameters used indetermining the analysis including instrumentmake and model, reading times, calibrationsfactors applied and their derivation, etc. | No geophysical tools were used to determine any elementconcentrations. | |
| Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratory | Historic reports note QAQC protocols, but no data has beencompiled to assess the QAQC results. | |
| checks) and whether acceptable levels of accuracy(i.e. lack of bias) and precision have beenestablished. | Full QAQC system is in place for 2023-24 core sample assaysincluding blanks and standards (relevant certified referencematerial). | |
| Verification ofsampling andassaying | The verification of significant intersections byeither independent or alternative companypersonnel. | All assay results are checked and verified by alternativecompany personnel or independent consultants. Significantassay results prompt a visual review of relevant referencecore for validation purposes. |
| The use of twinned holes. | No twin holes are reported. | |
| Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols. | All historical drilling data has been obtained from open filereporting, the majority which was compiled and reported byKirland Lake Gold in the EL3539 Final Relinquishment Report(2019). Data has been reviewed, appraised and integratedinto S2's central database.For 2023-24 drilling the primary sampling data is collected in | |
| a set of standard Excel templates. The information ismanaged by S2's database manager for validation andcompilation into S2's central database. | ||
| Discuss any adjustment to assay data. | No adjustments made. |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Location of datapoints | Most historic drill collar locations were recorded using ahandheld GPS with a small number of drill collars recordedusing a differential GPS. | |
| Accuracy and quality of surveys used to locatedrillholes (collar and down-hole surveys), trenches,mine workings and other locations used in Mineral | All 2023-24 diamond drill holes are surveyed by handheldGPS in the first instance. | |
| Resource estimation. | All 2023-24 diamond drill holes are surveyed downholeusing the Axis Champ Gyro at approximately 12m intervalsto determine accurate drill trace locations. There is nomagnetic interference with respect to downhole surveys. | |
| Specification of the grid system used. | The grid system is MGA GDA94 (Zone 55). Local easting andnorthing are in MGA. | |
| Quality and adequacy of topographic control. | Topographic control is provided by a high-resolution LiDARsurvey DEM. The accuracy of the DEM is +/-1m. | |
| Data spacing anddistribution | Data spacing for reporting of Exploration Results. | Data spacing (drill holes) is variable and appropriate to thegeology. |
| Whether the data spacing and distribution issufficient to establish the degree of geological andgrade continuity appropriate for the MineralResource and Ore Reserve estimation procedure(s)and classifications applied. | No Mineral Resource or Ore Reserve estimation is reported. | |
| Whether sample compositing has been applied. | No sample compositing has been applied. | |
| Orientation of datain relation togeological structure | Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering thedeposit type. | The drill holes may not necessarily be perpendicular to theorientation of the intersected mineralisation. Mineralisedstructures have multiple orientations. Some of themineralised structures are intersected at low angles to thedrill holes resulting in multiple intersections of the samemineralised structure, though for the majority of drillingthere is no significant orientation-based sampling bias.Reported intersections are down-hole intervals and not truewidths. |
| If the relationship between the drilling orientationand the orientation of key mineralised structures isconsidered to have introduced a sampling bias,this should be assessed and reported if material. | Where the drilling orientation intersects a mineralisedstructure at a low angle appropriate commentary is providedin the body of the report. | |
| No information regarding the historic sample security hasbeen compiled. | ||
| Sample security | The measures taken to ensure sample security. | Chain of custody is managed by S2 personnel. Drill core isvisually checked at the drill rig and then transported to S2'sBendigo facility where it is cut and sampled before beingsecured in bags with a security seal. Bagged samples aretransported to the OSLS laboratory in Bendigo by S2personnel. |
| Audits or reviews | The results of any audits or reviews of samplingtechniques and data. | No records of any audits or reviews of historic sampling havebeen compiled to date. |
| No audits or reviews have been conducted for 2023-24drilling activities. |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineral tenementand land tenurestatus | The Greater Fosterville Project consists of two grantedexploration licences (EL7795 & EL8074) and two deferredexploration licence applications (EL8166 & EL8167) in theState of Victoria. The tenements are owned by Southern StarExploration Pty Ltd (SSE), a wholly owned subsidiary of S2Resources Ltd. | |
| Type, reference name/number, location andownership including agreements or material issueswith third parties such as joint ventures,partnerships, overriding royalties, native titleinterests, historical sites, wilderness or nationalpark and environmental settings. | The Greater Fosterville Project is located within Recognitionand Settlement Agreement Areas held by the Dja DjaWurrung Clans Aboriginal Corporation (DJAARA) and theTaungurungLandandWatersCouncilAboriginalCorporation(TLaWC)undertheTraditionalOwnerSettlement Act 2010 (Vic). | |
| Access and compensation agreements are required toconduct work on freehold land and while it is hoped thatlandowners will agree to these there is no guarantee thatthey will be forthcoming. | ||
| EL7795 & EL8074 are current and in good standing. | ||
| The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area. | EL8166 & EL8167 are deferred applications following acompetitive assessment that resulted in the governmentselecting an alternate preferred applicant. EL8166 & EL8167will remain in abeyance until the highest ranked applicationis either granted or refused. | |
| Exploration done byother parties | Acknowledgment and appraisal of exploration byother parties. | The Greater Fosterville Project has seen explorationconducted by the various owners of the Fosterville GoldMine that has included Perseverance Exploration CompanyLtd, Northgate Minerals, AuRico Gold, Crocodile Gold,Newmarket and Kirkland Lake Gold over the period 1989-2019. Historic exploration has also included work by PlanetMining Company Pty Ltd (1965-70), Lone Star ExplorationNL (1973-74), Noranda Australia Ltd (1974-76), BrunswickNL (1989-92), Bendigo Gold Associates (1989-92), BHPMinerals Ltd (1986-90), Western Mining CorporationLimited (1978-89) and Rio Tinto Exploration Pty Ltd (1980-1988).All historical work has been obtained from open file |
| reporting, the majority which was compiled and reportedby Kirland Lake Gold in the EL3539 Final RelinquishmentReport (2019). Data has been reviewed, appraised andintegrated into a database. Data is of sufficient quality,relevance and applicability. | ||
| Geology | The deposit style sought is orogenic gold mineralisationlocated in the Bendigo Zone of the Victorian Gold Province. | |
| Deposit type, geological setting and style ofmineralisation. | The Fosterville Goldfield is hosted by Lower Ordovicianturbidites within the Castlemaine Group rocks. Thesequence is metamorphosed to sub-greenschist facies. | |
| Gold mineralisation is typically hosted by quartz reefslocated in fold and fault structures related to multiplecompression events that formed upright chevron style foldgeometry. |
SECTION 2: REPORTING OF EXPLORATION RESULTS
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Drill holeInformation | A summary of all information material to theunderstanding of the exploration results includinga tabulation of the following information for allMaterial drill holes:•easting and northing of the drill holecollar•elevation or RL (Reduced Level –elevation above sea level in metres) ofthe drill hole collar•dip and azimuth of the hole•down hole length and interceptiondepth•hole length. | A table of completed drill hole collar information forexploration results presented here is provided below. |
| Data aggregationmethods | In reporting Exploration Results, weightingaveraging techniques, maximum and/or minimumgrade truncations (e.g. cutting of high grades) andcut-off grades are usually Material and should bestated. | All Exploration Results reported are downhole weightedmeans. |
| Where aggregate intercepts incorporate shortlengths of high grade results and longer lengths oflow grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shown indetail. | A table of significant intercepts presented here is providedbelow. | |
| The assumptions used for any reporting of metalequivalent values should be clearly stated. | No metal equivalent values are reported. | |
| Relationshipbetweenmineralisationwidths and interceptlengths | These relationships are particularly important inthe reporting of Exploration Results.If the geometry of the mineralisation with respectto the drill hole angle is known, its nature shouldbe reported.If it is not known and only the down hole lengthsare reported, there should be a clear statement tothis effect (e.g. 'down hole length, true width notknown'). | The relationship between mineralization and drill holeangle is not fully understood, therefore the down holemineralized and composited lengths are shown. A truewidth is not known at this time. |
| Diagram | Appropriate maps and sections (with scales) andtabulations of intercepts should be included forany significant discovery being reported Theseshould include, but not be limited to a plan view ofdrill hole collar locations and appropriate sectionalviews. | Appropriate maps, sections and tables are included in thebody of the report. |
| Balanced reporting | Where comprehensive reporting of all ExplorationResults is not practicable, representative reportingof both low and high grades and/or widths shouldbe practiced to avoid misleading reporting ofExploration Results. | Maps showing individual sample locations are included inthe report.All results considered significant are reported. |
| Other substantiveexploration data | Other exploration data, if meaningful andmaterial, should be reported including (but notlimited to): geological observations; geophysicalsurvey results; geochemical survey results; bulksamples – size and method of treatment;metallurgical test results; bulk density,groundwater, geotechnical and rockcharacteristics; potential deleterious orcontaminating substances. | Previous exploration data reported include historic dipoledipole IP-resistivity surveys(ASX Announcement 17February 2023), historic RC and diamond drilling (ASXAnnouncement 20 October 2023) and earlier diamonddrilling from the current program (ASX Announcements 27December 2023 & 15 February 2024).Other historical exploration data has not yet been compiledto a level where it can be reported. Further compilation ofsuch data will be reviewed and reported when consideredmaterial. |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Further work | The nature and scale of planned further work (e.g.tests for lateral extensions or depth extensions orlarge-scale step-out drilling).Diagrams clearly highlighting the areas of possibleextensions, including the main geologicalinterpretations and future drilling areas, providedthis information is not commercially sensitive | The initial diamond drilling program to test targets definedby historical data at Goornong South has been completed,with the overall folding and fault architecture still beinginterpretedtoaidinunderstandingthepotentialconnectivity of the mineralised zones. A further program ofholes will be planned to infill key areas to test the outcomesof this interpretation.Broader surface exploration activities including IP-resistivityto generate new targets have commenced. |