S2 Resources secured two WA exploration licences covering 35 km of the Karbah shear zone. A 30,000m aircore program is planned for July, with $1.2 million left to spend by October 2026 to earn 51% of the Jillewarra Joint Venture.
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S2 Resources (ASX:S2R) picked up two exploration licences from the WA Department of Mines, Petroleum and Exploration, clearing the way for a July drilling start at the Jillewarra Joint Venture.
The permits cover 35 kilometres of strike along the Karbah shear zone, which the company says is the same structure hosting Westgold's 2.4 million ounce Big Bell mine and Ramelius Resources' 2.9 million ounce Dalgaranga operations. S2 is earning an initial 51% interest in the project from private company Black Raven Mining.
Environmental approval applications for drilling are being lodged this week. The initial program is 30,000 metres of aircore drilling, roughly 300 holes on wide-spaced lines. Executive chairman Mark Bennett called it a "sighter" program aimed at understanding the geology, depth of cover, and any gold or pathfinder anomalies.
"Given the areal extent of the target zone and the extremely wide spacing and arbitrary siting of the initial drilling, the company expects that it may take several campaigns before it can zero in on any hotspots," Bennett said.
S2 entered the farm-in agreement with Black Raven in 2020. The original terms were amended to account for delays in negotiating and signing the heritage protection agreement. S2 must spend $5 million by 2 October 2026 to earn its 51% stake. As of the end of May, it had spent $3.8 million on granted tenure covering other parts of the project where drilling has already occurred over the past several years.
The company told shareholders it expects the initial reconnaissance drilling between the licence grant and the earn-in deadline to be enough to meet the requirement.
S2 also holds a 100% exploration licence application immediately north of the new permits, giving it control of 60 strike kilometres of the Karbah shear zone. The company said the zone is almost entirely undercover and effectively unexplored.
S2R shares rose 7.14% to 6.0 cents, giving it a market cap of $25.36 million.
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