S2 Resources Drills First of 100 Swedish VMS Targets

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THE INSIDE STORY: S2 Resources (ASX: S2R) has made encouraging progress with the drill bit at the company’s 100 per cent-owned Skellefte project in Sweden.

S2 Resources commenced drilling at the Skellefte project last year on the first of over 100 VTEM anomalies it has identified at the project.

S2’s first VTEM geophysical survey, completed after it had acquired the project, was the first ever undertaken over the historic 100-year old mining region.

The survey identified 64 EM conductors, which was quickly increased in number when 40 further EM conductors were located by a second VTEM survey.

The company recently released assay results for its first three diamond holes from Skellefte, drilled to test the down plunge continuation of known mineralisation at the Bjurtraskgruvan VMS deposit.

The three holes were drilled on a broad spacing, tasked with ascertaining the immediate strike and down plunge potential of the deposit’s known near surface mineralisation.

Highlights from the drilling included:


SBJK170003
14.71 metres at 2.2 per cent zinc, 1 per cent copper and 5.4 grams per tonne silver from 176m, including 2.13m at 8.2 per cent zinc, 1.7 per cent copper and 8.5g/t silver from 177m;


SBJK170001
3.25m at 0.5 per cent zinc, 1.2 per cent copper and 5.4g/t silver from 185.1m, located 40m east along strike from hole SBJK170003; and


SBJK170002
3.06m at 1.3 per cent zinc and 9.7g/t silver from 21.3m, located 154m up dip of hole SBJK170003.

“Based on what we know of the overall geometry of the mineralisation, we have interpreted these intersections to be close to true width,” S2 Resources managing director Mark Bennett told The Resources Roadhouse.

The best intersection S2 Resources has achieved to date has come from the last of the three holes to be drilled (SBJK170003), which is also the deepest point drilled, hitting a depth of approximately 150m below surface, some 330m down plunge from the outcropping mineralisation. 

“The drilling outlined a VMS-style system that has a strike length of 260 metres, a down plunge extent of at least 330 metres, and is open down plunge beyond this,” Bennett explained.

“Surface EM and down hole EM (DHEM) in SBJK170003 has also shown the mineralisation continuing down dip and down plunge with the mineralisation comprising an upper lens of pyrrhotite dominated massive sulphides containing sphalerite (zinc sulphide) and a subjacent structurally remobilised footwall stockwork zone of chalcopyrite (copper sulphide) veins and stringers.

“The results are encouraging enough for us to drill several more holes to test down plunge of these intercepts as soon as the rig completes initial drilling at another target,” Bennett said.

The Bjurtraskgruvan deposit is demonstrative of the untapped potential at Skellefte that is only now receiving serious exploration attention since being acquired by S2 Resources.

Bjurtraskgruvan comprises outcropping volcanogenic massive sulphide (VMS) style mineralization originally identified and drilled by the Swedish Geological Survey (SGU) in the 1940s.

This historic drilling outlined a gently south dipping and southwesterly plunging zone of mineralisation that has long been ignored.

Intercepts from the SGU drilling include:


BJG80009
3.8m at 5.9 per cent zinc, 0.6 per cent copper, 8g/t silver;


BJG80007
6.2m at 3.9 per cent zinc, 0.4 per cent copper, 3g/t silver; and


BJG80001
6.1m at 3.6 per cent zinc, 0.2 per cent copper, 4g/t silver.

The Skellefte drilling results followed a new Mineral Resource estimate for the company’s Baloo gold deposit in Western Australia.

The revised Indicated and Inferred Mineral Resource estimate for the Baloo gold deposit comprised 4.22 million tonnes grading 2 grams per tonne gold for a contained 264,000 ounces of gold at a lower cut-off grade of 0.8g/t gold.

This was a 115 per cent increase in contained gold from the previous resource estimate at the same lower cut-off grade.

Of note was that nearly all of the increase in the Baloo Mineral Resource estimate comprised Inferred category material as it was based on broad-spaced deeper drilling undertaken down dip from the previous resource limit.

“A relatively thick, consistent zone of mineralisation was identified dipping steeply to the east and plunging moderately to the south,” Bennett said.

“The mineralisation remains open both down dip and down plunge beneath the limits of this drilling, and based on our deepest drilling, appears to be thicker at depth.”

S2 Resources (ASX: S2R)
…The Short Story

HEAD OFFICE
North Wing, Level 2
1 Manning Street
Scarborough WA 6019

Ph: +61 8 6166 0240

Email: admin@s2resources.com.au
Web: www.s2resources.com.au

DIRECTORS
Jeff Dowling, Mark Bennett, Anna Neuling, Grey Egerton Warburton.