S2 Resources Ltd ('S2' or the 'Company') advises that its wholly owned subsidiary, Southern Star Exploration Pty Ltd ('Southern Star'), has received assay results for the first of two follow-up holes at the Goornong prospect, on its 100% owned Greater Fosterville project in Victoria, Australia.
Results for the second hole are awaited.
Drilling at Goornong
S2 has completed two diamond drill holes to follow up gold mineralisation intersected in the first six holes drilled at the Goornong prospect, located immediately north of Agnico Eagle's Fosterville mining lease. The first six holes identified numerous zones of gold mineralisation in very widely spaced holes. Two initial follow up holes (SFVD0007 and 0008) were drilled to assess the degree of connectivity or otherwise of the gold mineralised zones identified to date. SFVD0007 was designed to test the strike position in between SFVD0005 and SFVD0006 but in a position 25-50 metres east of the axial plane tested by the earlier holes, to allow an assessment of not only any along strike continuity of mineralised structures, but importantly their persistence up/down dip to the east as they passed into the eastern limb of the primary anticline. The strongest new intercept of 5.7 metres @ 6.4g/t gold in hole SFVD0007 is geologically similar to a mineralised zone some 150 metres away in the nearest hole to the north (hole SFVD0005) that comprises 10.2 metres @ 4.2g/t gold. These intercepts may be the same structure, and if so, indicate the presence of significant gold mineralisation over a significant strike extent. Assays are awaited for SFVD008, which was designed primarily to drill back towards the south to fill a large gap (400-600 metres) between mineralised intervals intersected in SFVD0004 & SFVD0005, as well as also being sited 25-50 metres east of the anticline. The Company is now assessing in detail the nature of each mineralised zone using a combination of structural observations, alteration characteristics and multi-element analysis to build a threedimensional interpretation of the folding and faulting architecture. This understanding will then be used to further zero in on target positions for potentially significant accumulations of gold mineralisation by vectoring along the more favourable structures.
Previous holes intersected significant gold mineralisation in structures within the same depth interval (from surface to 350 metres depth) over a strike length spanning 1,500 metres. The holes completed by S2 at the southern end of the trend have to date shown a complex clustering of significant gold mineralised faults with variable associated quartz vein development. Mineralisation is closely associated with disseminated sulphide (pyrite-arsenopyrite) alteration zones around faults, with variable presence of stibnite both coarsely crystalline within veins and as finer disseminations
The first phase of IP successfully identified two significant broad chargeability anomalies. The first broad anomaly covers the extensions of the mineralised structures north of the Fosterville Mine, including the Goornong mineralised zone which is the focus of current diamond drilling, and the O'Dwyer's and Fosterville faults. The chargeability anomalism parallels and in some areasis offset from the interpreted faults, perhaps representing down-dip positions of more focused sulphide accumulations. A particularly strong anomaly is located at a structural intersection of the north trending Fosterville Fault and a NW trending cross fault. The second broad anomaly is more loosely defined by broad traverses completed in the north-east corner of the licence, adjacent and east of the historic May Reef prospect. This area of cover east of Bendigo Creek has had no previous exploration despite being in a favourable position adjacent and to the west of the Redesdale Fault. A second phase of broad IP is planned later in the year as part of the Company's strategy in working with landowners around local farming requirements. The second phase of work will add to the regional coverage and also work on advancing the definition of targets within the two broad anomalous zones
Goornong prospect background
Previous exploration has identified a strongly mineralised corridor centred on the Goornong South prospect where drilling during the 1990's intersected significant oxide gold mineralisation. During the last year that the exploration licence was held by Kirkland Lake (now Agnico Eagle) a series of diamond drill holes were completed to the south along strike of the historic oxide mineralisation. S2 Resources has been able to relog the Kirkland Lake core holes and use the information to interpret the stratigraphic and structural architecture of what is now interpreted to be the next parallel structure to the east of the O'Dwyers and Fosterville trends, which host the orebodies being mined by Agnico Eagle. This first drill program by S2 Resources, is testing immediately beneath and down plunge to the south of the Goornong South oxide mineralisation, testing multiple structures where they cross the main anticline that is interpreted to be the focus for mineralised fluids. Along the favourable anticline corridor any mineralised structure could refract into a favourable dilation position with the potential to form a significant high-grade trap for gold mineralisation akin to the Swan Zone (the Swan Zone, located along the Fosterville trend, had an initial Mineral Ore Reserve of 2.34Moz of gold at a grade of 49.6g/t, refer to the NI 43-101 Report dated 31 December 2018). To effectively test forsignificant mineralisation along the Goornong South anticline trend S2 Resources is undertaking a combination of conventional across strike holes in the shallower part of the system and unconventional strike parallel holes down the axial plane of the target anticline corridor that test multiple structural positions that cross the anticline. The axial plane holes are designed to test positions down plunge to the south of the oxide gold mineralisation as well as numerous other mineralised structuresintersected by the historic diamond drilling completed by Kirkland Lake, anyone which could yield a significant discovery where they refract and dilate across the fold corridor. The strike parallel holes drilling down the axial plane will continue to 800 metres depth. This will allow these drill holes to test for multiple structural levels within the anticline corridor. It is interpreted that favourable geometry for significant mineralisation will be where structures refract into relatively flat positions across strike, where they pass through the hinge zone. Current interpretations provide for south plunging anticline hinge zones and a parallel plunge to mineralised fault intersections. Drilling is angled towards the north to provide the optimal intersection angle for south plunging shoots, with angled drilling enabling core orientation and detailed structural measurements which are vital to interpreting the three-dimensional position of structures relative to local stratigraphy and the overall architecture, such that any near misses can be interpreted for later drill follow-up. The first pass drill program is designed to deliver a more detailed understanding of the structural and stratigraphic architecture of the Goornong South trend. The shallow drill holes beneath the oxide gold mineralisation will provide the first oriented core holes acrossthe entire width of the anticline corridor, proximal to significant gold mineralisation so as to provide critical information on the orientation and continuity of gold mineralised structures at this location. The deeper axial plane parallel drill holes are spaced to provide a better understanding of the distribution of alteration, the validity of the overall south plunging fold model, and the potential to identify a larger mineralised shoot early in the exploration program. Drilling will be a direct test of some specific target positions interpreted from previous drilling, as well as providing new information with which to vector towards targets in subsequent follow-up drill campaigns. The broad spacing of these holes is tailored to finding a large gold deposit, so it is important to not be mesmerised by narrow high grade intercepts and to not drill too close too soon - a situation that can result in over-drilling and overspending fortoo few ounces defined. As previously stated, it isimportant to first understand the overall three dimensional stratigraphic and structural architecture before attempting to zero in on sweet spots.
Contact:
Mark Bennett
Executive Chairman
Tel: +61 8 6166 0240
Competent Persons statement
Information in this report that relates to Exploration Results from Victoria is based on information compiled by Rohan Worland, who is an employee and equity holder of the Company. Mr Worland is a member of the Australian Institute of Geoscientists (AIG) 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 Worland consents to the inclusion in this report of the matters based on information in the form and context in which it appears. Information in this report that relates to Exploration Results from Western Australia, New South Wales and Finland is based on information compiled by John Bartlett, who is an employee and equity holder 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.
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