S2 RESOURCES LTD — Regulatory Filings 2019

Feb 13, 2019

ASX Announcement

Thursday 14th February 2019

EXPLORATION UPDATE – ECRU, NEVADA

S2 Resources Ltd ("S2" or the "Company") provides the following update regarding the results from its initial stratigraphic drilling at the Ecru project in Nevada. Two holes were drilled with the combined objectives of: determining the thickness of the less prospective upper plate sequence; determining the depth to the more prospective lower plate carbonate sequence, collecting preliminary data on the geochemistry and alteration within this sequence; and testing two geophysical anomaly scenarios, namely an audiomagnetotelluric (AMT) conductivity high coincident with a gravity high, and an AMT low coincident with a gravity low adjacent to interpreted intersecting structures which may have acted as a conduit for mineralizing fluids (see S2 December Quarterly Report, dated 29 January 2019).

Hole NECD001 intersected a number of narrow low grade gold-silver intervals, with a best result of 3.66 metres @ 1.65 g/t gold and 9.7 g/t silver from 99.06 metres, including 1.22 metres @ 3.4 g/t gold and 3.6 g/t silver (see Annexure 1 for full summary of drill results, and Figures 1 and 2).

The intervals of elevated gold and silver occur in zones of brecciation, silicification and overprinting argillic alteration, within broader haloes of antimony, arsenic, mercury, copper, zinc, molybdenum and tellurium anomalism. This multi-element association is similar to that at Barrick's 2.7 million ounce Robertson gold deposit, located immediately south of the Ecru project, which is reported to be an intrusion related gold-silver skarn deposit (refer to Coral Gold's NI43-101 report of January 2012) (Figure 3).

As stated in S2's December Quarterly Report (29th January 2019), neither hole successfully penetrated into the more prospective lower plate carbonate sequence beneath the upper plate siliciclastic sequence, but hole NECD0001 intersected a 229 foot (83 metre) thick section of limestone and calcareous mudstones within the siliciclastic sediments. It is not yet known if this represents part of the upper plate siliciclastic sequence, or a thrusted wedge of prospective lower plate carbonates structurally interleaved into the upper plate sequence.

Samples will be submitted for biostratigraphic age dating using micro-fossils in order to clarify the stratigraphy and the potential for such structural repetition and interleaving of upper and lower plate rocks.

The main part of the AMT anomaly, which appears to be open along the project's southern and western boundaries adjacent to Barrick's property, is as yet untested.

Following the completion of the biostratigraphic dating and a comprehensive evaluation of the initial results, the next steps for further exploration on the project will be decided.

Figure 1. Plan showing location of the recent drilling relative to the 3 ohm AMT isosurface and gravity.

Figure 2. Close-up Isometric view (looking WSW) showing the recent drilling relative to historical drill results and the 3 ohm AMT isosurface.

Background

The Ecru project is located to the north of Barrick's giant Cortez gold mining complex, which comprises a number of individually significant gold deposits. These include Pipeline (~20Moz), Cortez Hills (~15Moz), Goldrush (~12Moz) and also the Robertson deposit located on ground immediately to the south of the Ecru project, which comprises a resource of 2.74Moz (refer to Coral Gold's NI43-101 report of January 2012) (see Figure 3).

S2 is earning a 70% interest in the Ecru project from Renaissance Gold by expenditure of US$3 million before 30th July 2022. Through the area of influence provisions in the S2-Renaissance agreement, S2 is also earning a 70% interest in the adjacent ground recently subleased from Newmont by Renaissance (refer to S2's ASX release of 3 rd August 2018).

Figure 3. Plan showing the location of the recent drilling at the Ecru project area relative to the location of Barrick's nearby mines and resources.

For further information, please contact:

Mark Bennett Anna Neuling +61 8 6166 0240 +61 8 6166 0240

Managing Director & CEO Executive Director & Company Secretary

Competent Persons statements

The information in this report that relates to Exploration Results from Nevada is based on information compiled by John Bartlett, who is an employee and shareholder of the Company. Mr Bartlett is a member of the Australian Institute of Mining and Metallurgy (MAusIMM) and hassufficient 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.

Annexure 1

The following Tables are provided to ensure compliance with the JORC code (2012) edition requirements for the reporting of exploration results.

Hole ID	Depth	Northing	Easting	RL	Dip	Azim	From(m)	To(m)	Interval(m)	Gold(g/t)	Silver(g/t)
NECD0001	574.43	4466000	528080	1579.5	-90	000	99.06	102.72	3.66	1.65	9.7
including					100.58	101.8	1.22	3.40	3.6
and					295.66	298.7	3.04	0.55	1.3
and					441.96	443.48	1.52	0.92	5.2
and				559.31	560.71	1.40	2.26	9.5
NECD0002	676.66	4465500	528040	1562.7	-90	000	NSI

SECTION 1: SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code explanation	Commentary
Samplingtechniques	Nature and quality of sampling (e.g. cutchannels, random chips, or specificspecialised industry standard measurementtools appropriate to the minerals underinvestigation, such as down hole gammasondes, or handheld XRF instruments, etc).These examples should not be taken aslimiting the broad meaning of sampling.	Rock chip samples were collected by random chip sampling with ageological hammer of about fist size material to make a collectivesample weight of about 0.5-2kg.Drilling is undertaken using Idea Drilling or Boart Longyear, basedout of Nevada, USA. Drilling was carried out using either PQ3 orHQ3 with a core size of 83mm or 61.1mm respectively. Thesamples are logged and marked up by S2 personnel. Unbiased coresample intervals were sent to Bureau Veritas in Reno, Nevada tobe cut and sampled with ½ core submitted for analysis.
	Include reference to measures taken toensure sample representivity and theappropriate calibration of anymeasurement tools or systems used	Rock material that comprised the samples were selected randomlywithout bias to material appearance to give an accuraterepresentation of the sample being collected.For diamond core, sampling and QAQC procedures are carried outusing S2 protocols as per industry best practice.

Criteria	JORC Code explanation	Commentary
	Aspects of the determination ofmineralisation that are Material to thePublic Report. In cases where 'industrystandard' work has been done this wouldbe relatively simple (e.g. 'reversecirculation drilling was used to obtain 1 msamples from which 3 kg was pulverised toproduce a 30 g charge for fire assay'). Inother cases more explanation may berequired, such as where there is coarse goldthat has inherent sampling problems.Unusual commodities or mineralisationtypes (e.g. submarine nodules) maywarrant disclosure of detailed information	Samples were dried, crushed with a 500g split pulverised (totalprep). Samples were analysed using an aqua regia digest ICP/OESand ICP/MS (Code ME-MS41) and by fire assay with an ICP/AESfinish (Code Au-ICP21). The following elements are included in theassay suite: Ag, Al, As, Au, B, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu,Fe, Ga, Ge, , Hf, Hg, In, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb,Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr.
Drilling techniques	Drill type (e.g. core, reverse circulation,open-hole hammer, rotary air blast, auger,Bangka, sonic, etc) and details (e.g. corediameter, triple or standard tube, depth ofdiamond tails, face-sampling bit or othertype, whether core is oriented and if so, bywhat method, etc).	Diamond drilling with PQ3 or HQ3 wireline bit producing an 83mmor 61.1mm diameter core sample respectively.
Drill samplerecovery	Method of recording and assessing coreand chip sample recoveries and resultsassessed	Diamond Drill core recoveries are visually estimated qualitatively ona feet basis and are recorded in the database.
	Measures taken to maximise samplerecovery and ensure representative natureof the samples	Triple tube drilling, use of drilling muds and short drill runs areutilized in areas of difficult drilling to maximize recoveries andminimize lose of fine / broken material.
	Whether a relationship exists betweensample recovery and grade and whethersample bias may have occurred due topreferential loss/gain of fine/coarsematerial.	No relationship can be established at the present time.
Logging	Whether core and chip samples have beengeologically and geotechnically logged to alevel of detail to support appropriateMineral Resource estimation, miningstudies and metallurgical studies.	The logging uses a standard legend developed by S2 which issuitable for wireframing. Exploration holes are not routinely loggedgeotechnically however holes have been geotechnically logged toattempt to establish potential fault zones.
	Whether logging is qualitative orquantitative in nature. Core (or costean,channel, etc) photography.	All core has been photographed both dry and wet. Geologicallogging of the diamond drill holes is onto physical log sheetsfollowed by importing into S2's central database.
	The total length and percentage of therelevant intersections logged	All drill holes were logged in full.
Sub-samplingtechniques andsample preparation	If core, whether cut or sawn and whetherquarter, half or all core taken.	Core sawn in half and half core taken
	If non-core, whether riffled, tube sampled,rotary split, etc and whether sampled wetor dry.	No sampling of non core drilling has taken place.

Criteria	JORC Code explanation	Commentary
		Samples are analysed for gold using 30g lead collection fire assaywith an ICP/ES finish at the ALS laboratory in Reno, Nevada. Thissample is considered a total digest and the highest quality assaytechnique available.
	For all sample types, the nature, qualityand appropriateness of the samplepreparation technique.	In addition an extensive multi-element suite (including Ag, Al, As,Au, B, Ba, Bi, Ca, Cd, Co, Cr, Cu, Fe, Ga, Hg, K, La, Mg, M Ag, Al, As,Au, B, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, , Hf, Hg, In, K,La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta,Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr.) is analysed using an aqua regia digestwith an ICP-MS finish. This method is a partial digest, but isconsidered appropriate to identify potential pathfinder elementswhich may assist in locating nearby gold mineralisation.
	Quality control procedures adopted for allsub-sampling stages to maximiserepresentivity of samples.	Laboratory Quality control procedures include submission ofCertified Reference Materials (CRM's), blanks and duplicatesamples with each batch of samples. Selected samples are also reanalysed to confirm anomalous results.
		Grind size checks are routinely completed to ensure samples meetthe industry standard of 85% passing through a 75µm mesh.
	Measures taken to ensure that thesampling is representative of the in situmaterial collected, including for instanceresults for field duplicate/second-halfsampling.	Samples are collected using an unbiased half core sample.Duplicate samples are collected by taking a second split form thecrushed material.
	Whether sample sizes are appropriate tothe grain size of the material beingsampled.	Sample sizes are considered appropriate for gold mineralisation.
Quality of assaydata and laboratorytests	The nature, quality and appropriateness ofthe assaying and laboratory proceduresused and whether the technique isconsidered partial or total.	Samples are analysed for gold using 30g lead collection fire assaywith an ICP/ES finish at the Bureau Veritas laboratory in Reno,Nevada. This sample is considered a total digest and the highestquality assay technique available.In addition an extensive multi-element suite (including Ag, Al, As,Au, B, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, , Hf, Hg, In,K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr,Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr.) is analysed using an aqua regiadigest with an ICP-MS finish. This method is a partial digest, but isconsidered appropriate to identify potential pathfinder elements
		which may assist in locating nearby gold mineralisation.
	For geophysical tools, spectrometers,handheld XRF instruments, etc, theparameters used in determining theanalysis including instrument make andmodel, reading times, calibrations factorsapplied and their derivation, etc.	Not applicable – no geophysical techniques have been used todetermine an assay value.
	Nature of quality control proceduresadopted (e.g. standards, blanks, duplicates,external laboratory checks) and whetheracceptable levels of accuracy (i.e. lack ofbias) and precision have been established.	Sample preparation checks for fineness were carried out by thelaboratory as part of their internal procedures to ensure the grindsize of 85% passing 75 micron was being attained. Laboratory QAQCinvolves the use of internal lab standards using certified referencematerial, blanks, splits and replicates as part of the in houseprocedures.
Verification ofsampling andassaying	The verification of significant intersectionsby either independent or alternativecompany personnel.	The Exploration Manager of S2 has visually verified the results.
	The use of twinned holes.	No twin holes have been undertaken by S2 Resources Ltd.
	Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.	Primary sampling data is collected in a set of standard Exceltemplates. The information is managed by S2's database managerfor validation and compilation into S2's central database

Criteria	JORC Code explanation	Commentary
	Discuss any adjustment to assay data.	No adjustments or calibrations were made to any assay datareported.
Location of datapoints	Accuracy and quality of surveys used tolocate drillholes (collar and down-holesurveys), trenches, mine workings andother locations used in Mineral Resourceestimation.	Drill sites were defined using a Garmin handheld GPS with anaccuracy about +/– 4m for easting and northing.
	Specification of the grid system used.	The grid system used was NAD 27 Zone 11.
	Quality and adequacy of topographiccontrol.	No controls were utilized and are not deemed important for theregional nature of drilling.
Data spacing anddistribution	Data spacing for reporting of ExplorationResults.	Drilling has targeted specific geological features and are notcompleted on specific spacing at this time.
	Whether the data spacing and distributionis sufficient to establish the degree ofgeological and grade continuityappropriate for the Mineral Resource andOre Reserve estimation procedure(s) andclassifications applied.	Data spacing and distribution is not sufficient at this stage to allowthe estimation of mineral resources.
	Whether sample compositing has beenapplied.	No compositing has been applied
Orientation of datain relation togeological structure	Whether the orientation of samplingachieves unbiased sampling of possiblestructures and the extent to which this isknown, considering the deposit type.	Drillhole orientation is reconnaissance in nature and is notnecessarily drilled perpendicular to the orientation of theintersected mineralisation.
	If the relationship between the drillingorientation and the orientation of keymineralised structures is considered to haveintroduced a sampling bias, this should beassessed and reported if material.	No relationship to orientation of key mineralized structures hasbeen established at this time.
Sample security	The measures taken to ensure samplesecurity.	Chain of custody is managed by S2 Resources. Samples are storedon site and then delivered to the laboratory in Elko, Nevada.Tracking sheets have been set up to track the progress of batches ofsamples.
Audits or reviews	The results of any audits or reviews ofsampling techniques and data.	No audits have been undertaken and it is not considered materialat this stage of exploration.

SECTION 2 REPORTING OF EXPLORATION RESULTS

Criteria	JORC Code explanation	Commentary
Mineral tenementand land tenurestatus	Type, reference name/number, locationand ownership including agreements ormaterial issues with third parties such asjoint ventures, partnerships, overridingroyalties, native title interests, historicalsites, wilderness or national park andenvironmental settings.	S2 Resources Ltd, through its subsidiary Nevada Star ExplorationLLC, is earning into the following mineral tenure via an agreementwith Kinetic Gold (US) Inc ("Kinetic") and its parent companyRenaissance Gold Inc. ("RenGold")1.Kinetic holds an Option to Purchase under the Ivy OptionAgreement112MineralClaims(NMC1098847–1098958) held by Ivy Minerals Inc within Lander County,NV.2.Kinetic holds a sub-lease agreement with Newmont(USA) Ltd to the mineral rights to private held lands on 2section blocks (T29N R47E Section 27 (All) and T29NR47E Section 33 (N1/2, N1/2S1/2).All are subject to certain confidential royalty agreements, payableby Nevada Star Exploration LLC to Kinetic Gold (US) Inc and thirdpartiesBased on a due diligence process, no commercial, historical, nativetitle, heritage or environmental impediments are known
	The security of the tenure held at the timeof reporting along with any knownimpediments to obtaining a licence tooperate in the area.	Based on a due diligence process, the claims are in good standingand no known impediments exist on tenement actively explored.
Exploration done byother parties	Acknowledgment and appraisal ofexploration by other parties.	Ivy Minerals, in JV partnership with Kinetic Gold (US) Inc (now awholly-owned subsidiary of RenGold), completed broad spacedenzyme leach and gravity surveying over the property.Limited information on any earlier exploration activities is available,however it is known that Barrick Gold completed one historic RCdrill hole on the property in 1995.In addition Victoria Resources completed three diamond holesbetween 2007 and 2008.Variable data on each of the historic drill holes is available and thishas been captured in the S2 database. No samples are known tosurvive and the historical results have not been verified by S2ResourcesAll known historic drill site has been visited and verified by ageologist working on behalf of S2 Resources.
Geology	Deposit type, geological setting and styleof mineralisation.	The projects are located within the Great Basin of Nevada and thedeposit type being explored consists of the Carlin-style whichcomprises fine-grained disseminated replacement sulphide (pyrite)mineralisation in zones of silicified, decarbonatised, argillised, siltycalcareous rocks and associated jasperoids.The mineralisation is hosted within Palaeozoic carbonate andsiliciclastic sedimentary rocks which were deposited in a marinesetting ranging from deep to shallow water on a former westerncontinental margin of North America. These units were deformedby the Antler Orogeny and later intruded by felsic bodies of varyingages. The age of the mineralisation is Eocene and ranges between34-42 Ma. Later faulting developed the distinctive 'Basin and Range'topography of the area.

Criteria	JORC Code explanation	Commentary
Drill holeInformation	A summary of all information material tothe understanding of the explorationresults including a tabulation of thefollowing information for all Material drillholes:easting and northing of the drillhole collarelevation or RL (Reduced Level– elevation above sea level inmetres) of the drill hole collardip and azimuth of the holedown hole length andinterception depthhole length.	Refer to Annexure 1 and sample plans in text.
Data aggregationmethods	In reporting Exploration Results, weightingaveraging techniques, maximum and/orminimum grade truncations (e.g. cutting ofhigh grades) and cut-off grades are usuallyMaterial and should be stated.	For drilling undertaken by S2, a lower cut-off of 0.5 ppm gold hasbeen applied. No upper cut-off has been applied to results. Whereindividual results have been combined, results have been lengthweighted.For historical results a 0.1ppm gold was used as the lower cut-off,however the method of averaging is unknown.
	Where aggregate intercepts incorporateshort lengths of high grade results andlonger lengths of low grade results, theprocedure used for such aggregationshould be stated and some typicalexamples of such aggregations should beshown in detail.	Historical results do not report any internal high grade results.
	The assumptions used for any reporting ofmetal equivalent values should be clearlystated.	Not applicable – no metal equivalent values have been reported.
Relationshipbetweenmineralisationwidths and interceptlengths	These relationships are particularlyimportant in the reporting of ExplorationResults.If the geometry of the mineralisation withrespect to the drill hole angle is known, itsnature should be reported.If it is not known and only the down holelengths are reported, there should be aclear statement to this effect (e.g. 'downhole length, true width not known').	It is not known at this stage what the angle between drill core andthe geometry of mineralization.
Diagram	Appropriate maps and sections (withscales) and tabulations of interceptsshould be included for any significantdiscovery being reported These shouldinclude, but not be limited to a plan viewof drill hole collar locations andappropriate sectional views.	All Figures are contained in the body of the text.
Balanced reporting	Where comprehensive reporting of allExploration Results is not practicable,representative reporting of both low andhigh grades and/or widths should bepracticed to avoid misleading reporting ofExploration Results.	All results considered significant are reported.

Criteria	JORC Code explanation	Commentary
Other substantiveexploration data	Other exploration data, if meaningful andmaterial, should be reported including (butnot limited to): geological observations;geophysical survey results; geochemicalsurvey results; bulk samples – size andmethod of treatment; metallurgical testresults; bulk density, groundwater,geotechnical and rock characteristics;potential deleterious or contaminatingsubstances.	No other exploration data collected to date is considered materialor meaningful at this stage.
Further work	The nature and scale of planned furtherwork (e.g. tests for lateral extensions ordepth extensions or large-scale step-outdrilling).Diagrams clearly highlighting the areas ofpossible extensions, including the maingeological interpretations and futuredrilling areas, provided this information isnot commercially sensitive	Petrophysical measurements on diamond core will be taken toprovide inputs to better refine modelling and interpretation of thegravity and AMT geophysical data.Micro-fossil dating of core from recent drilling will be carried out toassist in defining stratigraphy.