THE BOURSE WHISPERER: S2 Resources (ASX: S2R) has struck 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.
S2 Resources also announced it has made a C$1 million investment in another TSXV-listed company, GT Gold, which the high-grade Saddle gold discovery in the Golden Triangle of British Columbia, Canada.
S2 described Renaissance Gold as a company that specialises in generating prospects and Joint Venturing these with larger partners at the drilling stage, adding that its personnel have been involved in several major discoveries, including the Long Canyon deposit, which was ultimately bought by Newmont for US$2.3 billion.
S2 Resources believes the deal delivers several drill-ready, Carlin-style gold targets defined by geology, geophysics and geochemistry, located in compact land packages.
The Ecru property is located adjacent to Barrick Gold’s Cortez Pipeline-Goldrush deposit cluster, which hosts approximately 50 million ounces of gold.
The Pluto property has up to 13.1 grams per tonne gold in outcrop, despite the main target zone (most receptive host rocks) interpreted to be at greater depth.
The South Roberts property comprises a Carlin-style target located under cover and along trend from several world class Carlin-type gold deposits.
S2 Resources will be required to spend a minimum of US$200,000, on each property, within two years and, can earn a 70 per cent interest by spending US$3 million within five years.
“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 in the company’s announcement to the Australian Securities Exchange.
“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.
“Importantly, the deal structure enables us to drill test and either earn-in or move on to new targets.
“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.”
S2’s investment of C$1 million in TSXV-listed gold explorer GT Gold was made via a placement at C32 cents per share.
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 a number of world class gold deposits including Eskay Creek (formerly mined by Barrick) and the new seven million ounce Brucejack mine (being developed by Pretivm).