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 second of two follow-up holes at the Goornong prospect, on its 100% owned Greater Fosterville project in Victoria, Australia.
Hole SFVD0008 was the second of two follow up holes designed to test the northern strike position of mineralised intercepts in 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.
Most other gold intercepts to date appear to occur within or in the hangingwall of this structure. The Blackadder Fault has a north-northeasterly strike, dips moderately to the west and plunges gently to the north, and has so far been defined over a strike length of 260 metres and a dip extent of 45 metres. Importantly, it is open both up and down dip, along strike, and down plunge. Most of the other zones of gold mineralisation intersected in the holes drilled to date appear to be confined to the hangingwall of the Blackadder Fault. The initial reconnaissance diamond drilling has succeeded in its objective of defining a specific targetstructure, which appearsto plunge in an opposite sense to initial expectations. Future drilling at Goornong will aim to test the strike and dip extents of this zone.
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.
Project background
S2's 100% owned subsidiary, Southern Star Exploration Pty Ltd, was announced as the winner of the highly competitive tender for the sole right to apply for an Exploration Licence (EL) over the ground surrounding Agnico Eagle's (Agnico) world class Fosterville gold mine in October 2021. The EL application was submitted in late 2021, and various Traditional Owner-related preconditions were satisfied recently. The ground was granted as Exploration Licence 7795 (EL7795) in early October, and covers an area of 394 square kilometres, extending 55 kilometres north to south, and abuts and surrounds Agnico Eagle's Fosterville mine lease. By virtue of its position, its size, and its inherent prospectivity, EL7795 is a highly strategic asset. EL7795 has a minimum expenditure commitment of A$10.4 million over the first five year term of the licence, inclusive of a minimum A$2.1 million commitment in the first two years.
As winners of the tender, S2 has also inherited a substantial amount of data acquired by previous explorers over the area, including the relatively recent exploration work undertaken by Kirkland Lake Gold (the owner of Fosterville prior to its acquisition by Agnico) on the tenement before it expired. This data includes extensive and high quality geophysical and geochemical surveys such as gravity, induced polarisation (IP), electromagnetic (EM), seismic, magnetic and LIDAR surveys, which are being used to generate drill targets. The inheritance of such a significant amount of data represents a huge saving for the Company in terms of time and money that would otherwise be required to get it to the point of having drill ready targets for testing. It also includes drilling data and drill core from holes drilled immediately prior to the expiry of the previous tenement, which although widely spaced and/or shallow and/or highly localised, have identified gold mineralisation in several locations. As a consequence, the Company has a range of targets at various stages of definition from early stage reconnaissance up to and including defined prospects simply requiring further drilling to determine the extent and quality of gold mineralisation at those locations. These targets are located on a mix of Crown Land, freehold land (both broadacre farms and smaller blocks), and road reserves, which require the Company to obtain land access agreements and other relevant permits, as well as heritage clearances, before commencing exploration1
Past Exploration results reported in this announcement have been previously prepared and disclosed by S2 Resources Ltd in accordance with JORC 2012. The Company confirms that it is not aware of any new information or data that materially affects the information included in these market announcements. The Company confirms that the form and content in which the Competent Person's findings are presented here have not been materially modified from the original market announcement. Refer to www.s2resources.com.au for details on past exploration results.
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 OreReserves. 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
Contact:
Mark Bennett
Executive Chairman
Tel: +61 8 6166 0240
S2 RESOURCES LTD 
