S2 Resources Puts Down North American Roots
THE INSIDE STORY: S2 Resources (ASX: S2R) added a new stamp to its passport by entering into an agreement with TSXV-listed Renaissance Gold to earn in to three of that company’s properties located on some of the major known gold mineralised trends in Nevada, USA
While in North America S2 also made a C$1 million investment in GT Gold, another TSXV-listed company that owns the high-grade Saddle gold discovery in the Golden Triangle of British Columbia, Canada
Under the agreement with Renaissance Gold, S2 Resources can earn a 70 per cent interest in three highly prospective gold exploration properties, Ecru, Pluto, and South Roberts, all of which are situated on major mineralised trends in Nevada
S2 described Renaissance Gold as being a company that specialises in generating prospects then joint venturing these with larger partners at the drilling stage
The company’s personnel have been involved in several major discoveries, including the Long Canyon deposit, which was ultimately bought by Newmont for US$2.3 billion
“After a patient search for high quality exploration opportunities in favoured jurisdictions we are pleased to have reached agreement to earn into these very compelling projects,” S2 Resources managing director Mark Bennett said
“Each property comprises a compact land package with well-defined and thought out drill-ready targets.
“Some of these targets are deep but their potential scale is very significant.
“The drill-ready nature of these opportunities complements the longer term strategic value we believe we can add to our other exploration projects in Sweden and Finland”
The Ecru project is located 40 kilometres southeast of Battle Mountain in Lander County, Nevada.
It is in the heart of the highly endowed Battle Mountain–Eureka trend, adjacent to Barrick’s Pipeline, Cortez Hills and Goldrush deposits, which have a collective gold endowment of approximately 50 million ounces.
The Ecru project is situated in an area covered by a veneer of transported colluvium and is centred on a large gravity high that has been interpreted to represent an upthrown block of the same carbonate rocks that host the nearby world class deposits
The Pluto project is located 50 kilometres north of Austin in Lander County, Nevada, on the north-south ‘Rabbit trend’ of gold deposits.
The target at Pluto comprises a gravity anomaly interpreted to represent an uplifted block -or horst – containing stratigraphy known to be receptive to gold mineralisation
This uplifted block is exposed where overlying tertiary volcanic rocks have been eroded to reveal the Havallah Formation, which is the impermeable caprock located immediately above, and sealing, the target receptive carbonate lithologies of the Antler sequence that is host world class gold deposits in the Battle Mountain district 90km to the north.
The South Roberts project is in Eureka County, Nevada and is located on the Battle Mountain–Eureka trend of world class gold deposits and on the western margin of the northern Nevada rift in a very similar setting to Barrick’s Goldrush deposit to the north.
The project covers the southern extension of an uplifted block containing known gold mineralisation that plunges southwards beneath transported colluvium substantiated by a gravity anomaly and confirmed by a six hole first pass drilling program conducted in 2014.
“Importantly, the deal structure enables us to drill test and either earn-in or move on to new targets,” Bennett explained.
“It is a good fit for both parties because it matches S2’s exploration capability and capacity with RenGold’s proven expertise in defining and discovering significant gold mines in an established mining friendly state.
“We are looking forward to working with Rengold and plan to hit the ground running”
Nevada was ranked fourth best mining jurisdiction in the world in the 2016 Fraser Institute ranking and is the fifth largest gold producing district in the world, with an estimated endowment of over 360 million ounces.
S2’s investment of C$1 million in gold explorer GT Gold was by way of a placement at C32 cents per share in April 2017.
GT Gold announced a high-grade gold discovery at its Saddle property, situated in an area of British Columbia known as the Golden Triangle, in July 2017.
The Golden Triangle hosts several world class gold deposits including Eskay Creek that was formerly mined by Barrick, and the new seven million-ounce Brucejack mine being developed by Pretivm.
S2 Resources (ASX; S2R)
…The Short Story
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DIRECTORS
Jeff Dowling, Mark Bennett, Anna Neuling, Grey Egerton Warburton