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S2 RESOURCES LTD Regulatory Filings 2020

Dec 7, 2020

65745_rns_2020-12-07_3fa7aaf1-35a8-4957-8ec3-4dfd89f2489f.pdf

Regulatory Filings

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ASX Announcement

8[th] December 2020

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HIGH GRADE GOLD IN FIRST DEEP HOLE BENEATH SHALLOW RECON DRILLING AT AARNIVALKEA, FINLAND

Key Points

  • Assays received for recent drilling program to test for dip and plunge extensions of near surface gold mineralisation at the Aarnivalkea gold prospect, Finland

  • Significant intercept of 6.85 metres at 11.8g/t gold in hole FAVD0062, 110 metres down dip of previous drillhole

  • Mineralisation remains open down dip and along strike to north and south with no other drilling at this depth

  • New highly prospective gold licence recently granted south of Kittilä gold mine

S2 Resources Ltd (“S2” or the “Company”) reports assays received for three of four diamond holes drilled in October 2020 to test for extensions to the shallow gold mineralisation previously drilled by the Company at its 100% owned Aarnivalkea prospect in Finland (Figure 1). The objective of this program was to test down-dip and down-plunge extensions to known mineralisation. Hole FAVD0062 returned the best gold intercept at the project to date with:

  • 6.85 metres at 11.8g/t gold from 223.0 metres downhole, including 4.0m at 18.1g/t from 223.0 metres downhole

Further encouraging intercepts from the program included:

  • 5.96 metres at 1.1g/t gold from 245.6 metres downhole in hole FAVD0061

  • 1.20 metres at 3.6g/t golf from 211.8 metres downhole in hole FAVD0062

  • 2.60 metres at 1.0g/t gold from 343.7 metres downhole in hole FAVD0062

Commenting on the drill results, S2’s Chief Executive Office Matthew Keane said “this high grade result reinforces S2’s view of the prospectivity of our tenure in the Central Lapland Greenstone Belt. Aarnivalkea is a virgin gold discovery, completely masked by shallow glacial cover and located only 24 kilometres from Kittilä, Europe’s largest producing gold mine. Lapland remains an integral part of S2’s portfolio, and in addition to following up on these gold results, we also plan to commence base metal exploration in 2021 on our 100% owned Ruopas Project”.

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au

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Figure 1. Aarnivalkea prospect location map showing S2’s landholding in Lapland, Finland, including neighbouring companies, mines, defined resources and recent drill intercepts. Resources and drill intercepts are sourced from public company statements.

Aarnivalkea returns high grade gold intercept

In 2019, S2 discovered the mineralised gold trend at Aarnivalkea in an area under shallow glacial cover and previously unexplored ( refer to previous S2 ASX announcement on 1 May 2019 ). The discovery followed a systematic regional targeting approach comprising sequential ionic leach geochemistry, structural interpretation of geophysics and base of till (BOT) drilling. Follow-up broad spaced reconnaissance diamond drilling defined a broad zone of basement mineralisation over a ~1,200 metre strike extent ( refer to previous S2 ASX announcement on 5 August 2019 ).

In October 2020, the Company drilled four very widely spaced diamond holes to test for a range of possible down-dip and down-plunge extensions to the gold mineralisation defined in the earlier shallow drilling. Assay results for three of the four holes have been received, all intercepting gold mineralisation. The strongest mineralisation was intersected on the central section line 7,551,840mN (Figure 3), some 110 metres downdip of the previous deepest intercept on the same lode. This interval comprises 6.85 metres at 11.8g/t gold in hole FAVD0062.

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au

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Figure 2. Plan projection of drilling at Aarnivalkea, showing the location of recent diamond drillholes (blue), key section lines and the northwest striking BOT gold mineralised zone (yellow shading), including higher grade lenses (red and magenta shading).

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au

Diamond hole summary

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Hole FAVD0062 was drilled directly beneath the centre of the known mineralisation at Aarnivalkea on section line 51,840mN. It intersected several mineralised zones, with the strongest located 110 metres down-dip from previous drilling. Better intercepts included:

  • 6.85 metres at 11.8g/t gold from 223.0 metres downhole, including 4.0 metres at 18.1g/t from 223.0 metres downhole

  • 1.20 metres at 3.6g/t golf from 211.8 metres downhole

  • • 2.60 metres at 1.0g/t gold from 343.7metres downhole

Mineralisation in the highest grade intercept was characterised by intense shearing with associated sericitealbite alteration and quartz-dolomite+/-scheelite veining with abundant arsenopyrite present along the vein margins.

Holes FAVD0061 and FAVD0063 were drilled as low angle diamond holes to test a possible southerly plunge extension of the known shallow mineralisation, where previous efforts to drill on the swamp had been hampered by a lack of freezing in the Winter months. Both holes were drilled from the same pad (at different azimuths), some 200 metres further south of hole FAVD0062. Hole FAVD0061 successfully proved the southern, down plunge extension to the mineralised zone. Assays for hole FAVD0063 are still outstanding. Better intercepts from hole FAVD0061 included:

  • 5.96 metres at 1.1g/t gold from 245.6 metres downhole in hole FAVD0061

  • 17.55 metres at 0.8g/t gold from 254.4 metres downhole, including 1.65 metres at 2.6g/t gold from 254.35 metres downhole in hole FAVD0061

Diamond hole FAVD0064 was drilled 560 metres north of hole FAVD0062 to test the down-dip extent of mineralisation in section line 52,400mN. Better intercepts included:

  • 1.15 metres at 0.7g/t gold from 45.5 metres downhole

  • 2.01 metres at 0.7g/t gold from 53.8 metres downhole

Aarnivalkea is developing into an extensive gold system extending over 1,200 metres in strike and up to 250 metres wide. Mineralisation is interpreted to occur within a series of stacked north-northwest trending shear zones, with a southerly plunge to higher grade shoots. It is characterised by sericite-albitearsenopyrite alteration and quartz-dolomite veining, best developed within basalt and on the margins of felsic porphyry intrusions, although it does extend into the porphyry units. While S2’s understanding of the controls on mineralisation is in its infancy, at least two higher grade lodes have been defined and are denoted as the 20 lens and 30 lens in the cross section below (Figure 3). Long projections of these lodes show the lack of drilling around these gold intercepts (Figure 4), with them being open down dip and to the north and south along strike. In particular, the high grade intercept on the 20 lens in hole FAVD0062 is completely open and requires follow up drilling.

Europe’s largest producing gold mine, Kittilä (Agnico Eagle, TSX:AEM), is located just 24 kilometres to the southeast. The deposit has a current Mineral Resource of 7.4Moz at 3.8g/t gold (Measured, Indicated and Inferred) and is mineralised beyond 1,000 metres below surface. It comprises multiple lodes, many of which were unidentifiable at the top of bedrock by BOT drilling. Like Kittilä, Aarnivalkea is interpreted to be a shear hosted system sitting on a parallel structure to the west. However, the majority of S2’s drilling to

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au

date is to a depth of 80 to 110 metres and on broad spaced section lines 80 to 240 metres apart, with only the recent holes being deeper. As such, this large mineralised system remains largely untested.

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Figure 3. Cross section through section line 51,840mN showing recent drill hole FAVD0062

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au

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Figure 4. Long projection through the 20 lens (upper) and 30 lens (lower) showing gold mineralisation open in most directions

New highly prospective exploration licence granted

The Finland Safety and Chemicals Agency (TUKES), responsible for mining and exploration permitting in the country, recently granted S2 an exploration permit over the 40 square kilometre Palvanen project area. The Company placed a priority permitting request on Palvanen due to its highly prospective structural setting along the Pahaslethto and Kiistala shear zones with anomalous gold and arsenic in historic BOT drilling. The project area is located just 5 kilometres south of the Kittilä mine.

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au

Next steps for Finland Gold Exploration

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At Aarnivalkea, S2 intends to undertake a detailed geochemical and structural study of the mineralised system to gain a better understanding of the key controls on high grade mineralisation ahead of any followup drilling to test along strike and down-dip of the recent intersections.

At Palvanen, S2 initially plans to undertake regional BOT drilling across prospective stratigraphic / structural corridors to identify areas for follow-up infill BOT and diamond drill testing.

Finland base metal exploration

S2 is anticipating the grant of licences on the Ruopas project in the first half of 2021. Ruopas is prospective for magmatic intrusive style nickel-copper-PGE mineralisation, being located 85 kilometres west of Anglo American’s 44.4Mt Sakatti copper-nickel-PGE deposit and 95 kilometres west Boliden’s 297.5Mt Kevitsa nickel-copper and precious metal mine (Figure 1). Activities planned for 2021 (pending the grant of exploration licences) include ground electromagnetic surveying, BOT drilling and diamond drilling of the Ruopas 1 conductor ( refer to previous S2 ASX announcement on 16 May 2019 ).

This announcement has been provided to the ASX under the authorisation of Mark Bennett, Executive Chairman.

For further information, please contact:

Matthew Keane Mark Bennett Chief Executive Officer Executive Chairman +61 8 6166 0240 +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 statements

The information in this report that relates to Exploration Results 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 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.

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au

Table 1. Details of diamond holes completed at Aarnivalkea in 2020 by S2 ( refer to previous S2 ASX announcements on 8 October 2019 and 12 November 2019 for all 2019 drill results ). Note, all holes have results through zones of interest only, with additional sampling yet to be reported by the laboratory.

Hole Easting Northing RL Dip Azimuth Depth From To Width Grade
Aug/t
FAVD0061 418435 7551660 239 -35 275 349.1 219.92 226.00 6.08 0.4
and 238.00 242.00 4.00 0.4
and 245.60 251.55 5.95 1.1
and 254.35 271.90 17.55 0.8
including 254.35 256.00 1.65 2.6
FAVD0062 418440 7551835 244 -55 270 404.6 164.50 174.50 10.00 0.7
and 211.80 213.00 1.20 3.6
and 223.00 229.85 6.85 11.8
including 223.00 227.00 4.00 18.1
and 297.00 314.00 17.00 0.4
and 330.80 335.00 4.20 0.9
and 343.70 346.30 2.60 1.0
and 350.00 354.00 4.00 0.3
and 377.50 385.00 7.50 0.6
FAVD0063 418434 7551660 238 -35 245 349.1 AWR
FAVD0064 418551 7552400 245 -60 270 350.3 23.00 25.04 2.04 0.5
and 45.48 46.63 1.15 0.7
and 53.77 54.01 2.01 0.7
and 261.10 268.00 6.90 0.3
and 277.39 277.69 0.30 1.3

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

SECTION 1: SAMPLING TECHNIQUES AND DATA

Criteria JORC Code explanation Commentary
Sampling techniques Nature and quality of sampling (e.g. cut channels,
random chips, or specific specialised industry
standard measurement tools appropriate to the
minerals under investigation, such as down hole
gamma sondes, or handheld XRF instruments, etc).
These examples should not be taken as limiting
the broad meaning of sampling.
The reported drilling was undertaken using Northdrill Oy of
Rovaniemi, Finland drilling WL-76 rod size with a DDH size of
76.3mm and core size of 57.5 mm. Core samples are logged
and marked up by S2 personnel. Unbiased core sample
intervals were cut in half by diamond saw with half core sent
for preparation and analysis at ALS Laboratories.
Include reference to measures taken to ensure
sample representivity and the appropriate
calibration of any measurement tools or systems
used
Sampling and QAQC procedures are carried out using S2
protocols as per industry best practice.

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au

Criteria JORC Code explanation Commentary
Aspects of the determination of mineralisation
that are Material to the Public Report. In cases
where ‘industry standard’ work has been done this
would be relatively simple (e.g. ‘reverse circulation
drilling was used to obtain 1 m samples from
which 3 kg was pulverised to produce a 30 g
charge for fire assay’). In other cases more
explanation may be required, such as where there
is coarse gold that has inherent sampling
problems. Unusual commodities or mineralisation
types (e.g. submarine nodules) may warrant
disclosure of detailed information
Diamond drilling was used to obtain core samples that have
been cut and sampled on intervals that are determined by
lithology and mineralisation.
The drill core samples are sent to ALS Laboratories for
analyses for gold and base metals. Drill core is sampled at
S2’s facilities in Kittila, Finland.
Drilling techniques Drill type (e.g. core, reverse circulation, open-hole
hammer, rotary air blast, auger, Bangka, sonic,
etc) and details (e.g. core diameter, triple or
standard tube, depth of diamond tails, face-
sampling bit or other type, whether core is
oriented and if so, by what method, etc).
Diamond drilling with WL76 wireline bit producing a 50.7mm
diameter core.
Drill sample
recovery
Method of recording and assessing core and chip
sample recoveries and results assessed
Diamond Drill core recoveries are recorded by the driller and
written on core block markers. The exact recovery is then
recorded on a metre basis after core mark-up and recorded in
the database.
Measures taken to maximise sample recovery and
ensure representative nature of the samples
Sample quality is qualitatively logged on a metre basis,
recording sample condition.
Whether a relationship exists between sample
recovery and grade and whether sample bias may
have occurred due to preferential loss/gain of
fine/coarse material.
No relationship has been seen to exist
Logging Whether core and chip samples have been
geologically and geotechnically logged to a level
of detail to support appropriate Mineral Resource
estimation, mining studies and metallurgical
studies.
The logging uses a standard legend developed by S2 which is
suitable for implicit wireframing. All diamond holes are
geotechnically and structurally logged.
Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc)
photography.
All core has been photographed both dry and wet. Geological
logging of the diamond drill holes is into tough books using
standardised codes and templates. These logs are then
imported into S2’s central database
The total length and percentage of the relevant
intersections logged
All drill holes were logged in full.
Sub-sampling
techniques and
sample preparation
If core, whether cut or sawn and whether quarter,
half or all core taken.
Core sawn in half and half core taken for assay.
If non-core, whether riffled, tube sampled, rotary
split, etc and whether sampled wet or dry.
Not applicable
For all sample types, the nature, quality and
appropriateness of the sample preparation
technique.
Samples were delivered by S2 personnel to ALS Minerals
laboratory in Sodankyla, Finland, where they are crushed with
>70% <2mm (code CRU-31), split by riffle splitter (code SPL-
21), and pulverised 1000grm to 85% <75 um (code PUL-32).
Crushers and pulverizers are washed with QAQC tests
undertaken (codes CRU-QC, PUL-QC). The prepared samples
are forwarded to ALS Minerals Loughrea, Ireland, for analysis.
Quality control procedures adopted for all sub-
sampling stages to maximise representivity of
samples.
Full QAQC system in place to determine accuracy and
precision of assays

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au

Criteria JORC Code explanation Commentary
Measures taken to ensure that the sampling is
representative of the in situ material collected,
including for instance results for field
duplicate/second-half sampling.
For DDH’s non biased core cutting through using an
orientation line marked on core and cut to the line
Whether sample sizes are appropriate to the grain
size of the material being sampled.
Samples of appropriate size
Quality of assay
data and laboratory
tests
The nature, quality and appropriateness of the
assaying and laboratory procedures used and
whether the technique is considered partial or
total.
All samples were analysed by ALS Minerals Loughrea, Ireland.
Core samples analysed for gold undergo a 50g fire assay with
AA finish (code Au-AA26).
For geophysical tools, spectrometers, handheld
XRF instruments, etc, the parameters used in
determining the analysis including instrument
make and model, reading times, calibrations
factors applied and their derivation, etc.
No geophysical tools were used to determine any element
concentrations.
Nature of quality control procedures adopted (e.g.
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy
(i.e. lack of bias) and precision have been
established.
Full QAQC system in place including Certified Standards and
blanks of appropriate matrix and levels
Verification of
sampling and
assaying
The verification of significant intersections by
either independent or alternative company
personnel.
all significant intercepts have been verified by senior S2
exploration personnel, including verifying against drill logging,
core photos and/or direct visual inspection of drill core.
The use of twinned holes. No twinned diamond holes have been drilled at Arnievalkea
Documentation of primary data, data entry
procedures, data verification, data storage
(physical and electronic) protocols.
Primary sampling data is collected in a set of standard Excel
templates. The information is managed by S2’s database
manager for validation and compilation into S2’s central
database.
Discuss any adjustment to assay data. No adjustments made
Location of data
points
Accuracy and quality of surveys used to locate
drillholes (collar and down-hole surveys), trenches,
mine workings and other locations used in Mineral
Resource estimation.
Diamond drill collars are pegged using a Trimble DGPS to +/-
1m accuracy. Drill rigs are aligned to Grid west using
Standard Finnish National Grid ETRS-TM35FIN. The holes are
downhole surveyed using a Deviflex tool.
Specification of the grid system used. The grid system used is the Standard Finnish National Grid
ETRS-TM35FIN.
Quality and adequacy of topographic control. Elevation data for all collars is determined by a digital
elevation model derived from public domain 2m Lidar data.
Topographic control and map data is excellent.
Data spacing and
distribution
Data spacing for reporting of Exploration Results. Recent drilling was not completed on a regular grid. Previous
diamond drilling at Aarnivlakea has been completed on 40m
drill spacings on lines between 80 – 240 metres apart.
Whether the data spacing and distribution is
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s)
and classifications applied.
Data spacing and distribution is not sufficient at this stage to
allow the estimation of mineral resources.
Whether sample compositing has been applied. No sample compositing has been applied

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au

Criteria JORC Code explanation Commentary
Orientation of data
in relation to
geological structure
Whether the orientation of sampling achieves
unbiased sampling of possible structures and the
extent to which this is known, considering the
deposit type.
Drillhole orientation is designed to intersect the mineralised
package of rocks and be perpendicular to shearing and
mineralisation. Structural measurements from orientated
core indicate that the main fabric and contacts are dipping
steeply to the east and hence holes collared at -60dip 270deg
azimuth are appropriate. The two southern holes were drilled
obliquely due to the local terrain, but the hole orientations are
still considered appropriate.
If the relationship between the drilling orientation
and the orientation of key mineralised structures is
considered to have introduced a sampling bias,
this should be assessed and reported if material.
The drilling at this stage is preliminary and exploratory. It is
not possible to assess if any sample bias has occurred due to
drillhole orientation at this stage.
Sample security The measures taken to ensure sample security. Chain of custody is managed by S2 personnel. Drill samples
and core is visually checked at the drill rig and then
transported to S2’s logging and cutting facilities by S2
personnel for logging, cutting and sampling. Bagged samples
are transferred to ALS Laboratories in Sodankyla, Finland by S2
personnel.
Audits or reviews The results of any audits or reviews of sampling
techniques and data.
No audits or reviews have been conducted at this stage.

SECTION 2: REPORTING OF EXPLORATION RESULTS

Criteria JORC Code explanation Commentary
Mineral tenement
and land tenure
status
Type, reference name/number, location and
ownership including agreements or material
issues with third parties such as joint ventures,
partnerships, overriding royalties, native title
interests, historical sites, wilderness or national
park and environmental settings.
The Aarnivalkea prospect is located within the Paana Central
Exploration Licence. ML2018:0081
The exploration licences are 100% owned by Sakumpu
Exploration Oy, a Finnish registered 100% owned subsidiary of
S2
The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a licence to operate in the area.
All of the Exploration Licences are in good standing and no
known impediments exist on the tenements being actively
explored.
Exploration done by
other parties
Acknowledgment and appraisal of exploration by
other parties.
The Aarnivalkea prospect is a greenfield discovery with historic
BoT holes drilled in the region by Outukumpu not having been
assayed for gold.
Geology Deposit type, geological setting and style of
mineralisation.
The prospect is a shear zone hosted orogenic gold deposit within
the Kittila Group of the Paleoproterozoic Central Lapland
Greenstone belt.
The primary host rocks include altered and sheared basalt,
dacites and sediments
Alteration assemblages include albite, sericite, carbonate,
chlorite with disseminated pyrite, pyrrhotite and arsenopyrite.
Drill hole
Information
A summary of all information material to the
understanding of the exploration results
including a tabulation of the following
information for all Material drill holes:

easting and northing of the drill hole
collar

elevation or RL (Reduced Level –
elevation above sea level in metres)
of the drill hole collar

dip and azimuth of the hole

down hole length and interception
depth

hole length.
Refer to sample plans in text.

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au

Criteria JORC Code explanation Commentary
Data aggregation
methods
In reporting Exploration Results, weighting
averaging techniques, maximum and/or
minimum grade truncations (e.g. cutting of high
grades) and cut-off grades are usually Material
and should be stated.
All reported intersections of drilling undertaken by S2 have been
length weighted.
A nominal 0.2g/t lower cut-off is used for the reconnaissance
diamond drill intersections. No top cut has been applied.
Where aggregate intercepts incorporate short
lengths of high grade results and longer lengths
of low grade results, the procedure used for such
aggregation should be stated and some typical
examples of such aggregations should be shown
in detail.
High grade intervals internal to broader zones of mineralisation
are reported as included intervals.
The assumptions used for any reporting of metal
equivalent values should be clearly stated.
None used.
Relationship
between
mineralisation
widths and
intercept lengths
These relationships are particularly important in
the reporting of Exploration Results.
If the geometry of the mineralisation with
respect to the drill hole angle is known, its
nature should be reported.
If it is not known and only the down hole lengths
are reported, there should be a clear statement
to this effect (e.g. ‘down hole length, true width
not known’).
The trend of mineralisation at the targets/prospects described is
estimated to be dipping steeply to the east at approximately 75
to 80 deg.
Refer to figures in body of text.
Diagram Appropriate maps and sections (with scales) and
tabulations of intercepts should be included for
any significant discovery being reported These
should include, but not be limited to a plan view
of drill hole collar locations and appropriate
sectional views.
Refer to Figures in body of text.
Balanced reporting Where comprehensive reporting of all
Exploration Results is not practicable,
representative reporting of both low and high
grades and/or widths should be practiced to
avoid misleading reporting of Exploration
Results.
All results considered significant are reported.
Other substantive
exploration data
Other exploration data, if meaningful and
material, should be reported including (but not
limited to): geological observations; geophysical
survey results; geochemical survey results; bulk
samples – size and method of treatment;
metallurgical test results; bulk density,
groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
None at present
Further work The nature and scale of planned further work
(e.g. tests for lateral extensions or depth
extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of
possible extensions, including the main
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive
Additional multi-element geochemical analysis of the recent
holes is planned. A detailed structural and geochemical study of
the available data to gain a better understanding of the key
controls prior to additional diamond drilling to follow-up the
recent drill intercepts.

4/24 Parkland Road, Osborne Park, WA 6017, Australia. PO Box 1209, Osborne Park, WA 6916, Australia ABN 18 606 128 090 T +61 8 6166 0240 F 61 8 6270 5410 E [email protected] W www.s2resources.com.au