Bellevue Gold Increases Eponymous Gold Resource

THE DRILL SERGEANT: Bellevue Gold (ASX: BGL) has increased the total Resources at the company’s Bellevue gold project in Western Australia.


S2 Resources Identifies New Gold Trend in Finland

THE DRILL SERGEANT: S2 Resources (ASX: S2R) has identified a new gold mineralised trend to the east of the company’s 100 per cent-owned Aarnivalkea gold prospect in northern Finland.

Impact Minerals Enters Broken Hill Alliance MoU

THE BOURSE WHISPERER: Impact Minerals (ASX: IPT) has signed a non-binding Memorandum of Understanding (MoU) with Castillo Copper (ASX:CCZ) and Squadron Resources.

Lithium Australia Lithium Extraction Technology Patent Accepted

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has received a Notice of Acceptance from IP Australia for its LieNA® technology patent application.


S2 Resources Identifies New Gold Trend in Finland

THE DRILL SERGEANT: S2 Resources (ASX: S2R) has identified a new gold mineralised trend to the east of the company’s 100 per cent-owned Aarnivalkea gold prospect in northern Finland.

S2 Resources identified the new trend by carrying out base of till (BOT) drilling, which retrieves a single end of hole sample at the interface between the base of the glacial till and the subjacent bedrock, and is essentially a way of collecting rockchip samples from beneath the transported cover.

S2 had undertaken the BOT drilling in lieu of planned extensional diamond drilling at Aarnivalkea, which could not proceed due to unusually warm conditions in the arctic preventing the ground from freezing and restricting rig access in swampy areas.

The new BOT anomaly is largely located on a gentle rise which can be drilled year-round, and the company is planning diamond drilling to test it as soon as possible.

The recent BOT drilling tested beneath an ionic leach gold anomaly and has identified a 1.2 kilometre long north-south striking zone of strongly altered and deformed bedrock with associated strong gold, arsenic, antimony and copper anomalism.

The bedrock in this zone comprises strongly sheared and sericite, silica, carbonate, sulphide altered greenstones with quartz-arsenopyrite veining.

Drilling produced numerous samples grading greater than 0.5 grams per tonne gold with a peak value of 4.3g/t gold, and these have associated anomalous arsenic, antinomy and copper pathfinder elements.

This corridor is open along strike to the south.

“It is likely that the southern extension of this corridor has been terminated by a late fault and displaced 1.5 kilometres to the northeast, where another line of reconnaissance BOT drilling has intersected gossanous quartz assaying 10.7g/t gold together with a similar suite of pathfinder elements,” S2 Resources said in its ASX announcement.

“BOT drilling is ongoing with the aim of further defining the extent of this new trend and its potential fault-offset continuation, and a diamond rig has been sourced to commence drilling in mid-March.”





S2 Resources Signals Potential Finland Gold Discovery

THE DRILL SERGEANT: S2 Resources (ASX: S2R) declared a possible gold discovery at the company’s Aakenusvaara gold prospect in Finland.

S2 Resources advised the market that it had intersected numerous zones of sulphides, alteration and brecciation in the first seven diamond holes it has drilled down dip and along strike from historic gold intercepts at the Aakenusvaara gold prospect.

The company indicated it was now waiting on assays for these intercepts, which it explained are visually similar to those in limited historic near surface drilling undertaken by Outokumpu.

Aakenusvaara is located three kilometres along strike from the Outokumpu’s former Saattopora mine, where copper-gold mineralisation was also associated with visually similar breccia zones and veins of pyrrhotite, pyrite, chalcopyrite, quartz, carbonate and strong albite alteration.

While waiting for the results for the Aakenusvaara holes, S2 will move the rig back to start a phase 2 reconnaissance program.

The phase 2 reconnaissance program at Aarnivalkea will tighten the current broad (320 metre) line spacing, follow up better intercepts from phase 1, and test some of the new base of till gold anomalies identified along strike and to the west of the main trend at Aarnivalkea.

“The optionality afforded by having these two drill-stage prospects in a district otherwise unexplored by Australian standards enables logistical flexibility and continuing momentum,” S2 Resources said in its ASX announcement.

“Both prospects are accessible all year round with the exception of some swampy areas at Aarnivalkea (best drilled in winter) and a seasonal environmental exclusion zone covering part of the Aakenusvaara prospect (with restricted access in spring/early summer).”





S2 Resources Scores High-Grade Hits in Finland

THE DRILL SERGEANT: S2 Resources (ASX: S2R) opened it Diggers & Dealers 2019 account with the announcement of assay results for the first 14 of 32 holes drilled during the first phase of reconnaissance diamond drilling at the company’s 100 per cent-owned Aarnivalkea gold anomaly in Finland.

S2 Resources said the drilling achieved its objective by confirming the presence of a shear zone system with hydrothermal alteration, widespread gold anomalism, and high-grade gold mineralisation.

Highlights included:

10 metres at 1 gram per tonne gold from 87m;

5.5m at 2g/t gold from 42m, including 0.7m at 6.7g/t gold and 1m at 5.3g/t gold; and

6m at 5.4g/t gold from 59m, including 4m at 7.8g/t gold.

Alongside these results, BOT drilling undertaken concurrently with the diamond drilling extended the Aarnivalkea anomaly to the south, identifying a parallel trend to the west of the main trend, with a best end of hole value of 2.17g/t gold.

S2 Resources explained the broad spacing of the holes it has drilled to date and the number of holes with assays still to come means it is too soon to identify specific hotspots for follow up so the rig has been moved to start drilling the Aakenusvaara gold prospect.

Once the remaining assays have been received the rig will commence follow up drilling which will comprise infill lines to tighten the spacing along strike, extensional lines to test the new BOT anomalies, and probe around the gold hotspots identified in phase 1.

The company expects the remaining assays will be received by mid-late August and that the rig will recommence drilling at Aarnivalkea by late August.

“Finland is a highly prospective but under-explored country and despite being only 25 kilometres away from Europe’s biggest gold mine, Aarnivalkea is completely unexplored, so these preliminary drilling results underpin the reason why we decided to explore there,” S2 Resources CEO Mark Bennett said in the company’s announcement to the Australian Securities Exchange.

“Our next milestone is the receipt of further assays from other holes completed, and we hope to build on these results over the coming weeks through our systematic program at Aarnivalkea whilst also progressing our other emerging gold and nickel prospects elsewhere in Lapland.”





S2 Resources Sell WA Gold Projects to Westgold

THE BOURSE WHISPERER: S2 Resources (ASX: S2R) executed a binding Heads of Agreement with Westgold Resources (ASX: WGX) to sell its Western Australia gold project interests.

S2 Resources will sell Westgold its interest in the Polar Bear project (100%), Eundynie Joint Venture (80%) and the Norcott project (100%) via the sale of all of the shares in S2’s wholly owned subsidiary Polar Metals Pty Ltd.

Under the terms of the Agreement, S2 will receive $3 million cash plus four million Westgold shares.

Assuming a share price of $1.50 per share, the total consideration will be $9 million and S2 will sign a voluntary restriction agreement in respect of the Westgold shares for a period of six months from settlement.

S2 Resources said the sale add strength to its balance sheet with cash and investments now totalling approximately $25 million, which the company said enhances its capacity to focus time and funds on the opportunities presented in its overseas exploration activities.

It will also retain exposure to the upside of Polar Bear’s nickel prospectivity, which includes the Taipan and Halls Knoll nickel prospects discovered by S2’s precursor, Sirius Resources.

S2’s WA gold projects include the Baloo gold deposit, which despite being too small for S2 to develop as a stand-alone mining operation, is considered to be a good strategic fit for Westgold, which owns the Higginsville gold operation located within 10 kilometres of Baloo.

“We are pleased to have executed this agreement, which is part of our strategy to focus on those opportunities that we believe have the best potential to deliver a significant discovery, whilst minimizing the need for external funding and keeping our capital structure as tight as possible so that in the event of success our shareholders retain maximum leverage to it.

“We are also pleased to become a shareholder of Westgold and look forward to Westgold progressing the development and exploration of the WA gold projects.”




S2 Resources Identifies Gold-Silver Zones at Storgroven

THE DRILL SERGEANT: S2 Resources (ASX: S2R) received results from base of till drilling undertaken on the company’s 100 per cent-owned Skellefte project in Sweden.

S2 Resources said the drilling had been carried out at the Storgroven target within the Skellefte project and has identified two adjacent zones of gold-silver mineralisation, with seven base of till holes ending in mineralisation greater than one gram per tonne gold and 20g/t silver.

Peak end of hole assays returned 2.5g/t gold and 60g/t silver in the southern zone and 2.3g/t gold and 42g/t silver in the northern zone.

The company drilled 115 holes on a nominal 25 by 25 metre grid to follow up an anomaly it identified in earlier broad spaced (400 by 50m) reconnaissance base of till drilling.

S2 said the infill drilling outlined two zones of strong sericite-silicasulphide hydrothermal alteration with gold and silver anomalism or mineralisation at the end of numerous holes defining a broad gold-silver anomaly measuring 300 by 200m.

The southern zone measures 80m across at a greater than 0.5g/t gold contour and is open to the southeast, with the peak end of hole sample assaying 2.5g/t gold and 60g/t silver.

This zone also contains elevated zinc with the peak end of hole value being one per cent zinc.

“No prior drilling or prospect pitting is documented in this area, but it is not possible to verify this until the spring thaw,” S2 Resources explained in its ASX announcement.

“The nearest known historic diamond drilling and trenching is at the Aliden VMS deposit, located 450 metres to the south on S2’s ground.

“The first phase of diamond drilling to test the source of this mineralisation is scheduled to commence next week.

“Further infill and extensional base of till drilling is continuing.”