S2 Resources Commences 5,000m Aircore Drilling at Yeungroon Project

Strategic Drilling Commences at Yeungroon

S2 Resources has embarked on its inaugural drilling program at the Yeungroon project, located in the Central Victorian Goldfields. The focus is the O'Connors trend, a significant gold-arsenic anomalous corridor recently acquired from Valkea Resources. This marks a key milestone in S2’s strategy to expand its footprint in one of Australia’s most prolific gold provinces.

The program involves approximately 5,000 metres of aircore drilling designed to test three separate trends, each extending roughly three kilometres and remaining open along strike. These trends were previously identified through shallow aircore drilling by Valkea, which highlighted extensive arsenic anomalies, a classic pathfinder element for orogenic gold mineralisation in the region.

Unlocking Hidden Gold Potential

Historical drilling by Valkea revealed modest gold intercepts within these corridors, including 1 metre at 0.43 g/t gold from 42 metres depth. However, previous efforts were limited by shallow drilling and selective gold assays, focusing primarily on arsenic detection via portable XRF. S2’s deeper and more systematic drilling aims to better define the spatial distribution of gold and arsenic, seeking “hotspots” that could indicate proximity to high-grade quartz reef lodes.

The O'Connors corridor’s location within the Stawell Zone, west of the Avoca Fault and near the historic St Arnaud goldfield, situates it within a geological setting known for significant orogenic gold deposits. The exploration approach leverages modern geochemical techniques and a more comprehensive drilling strategy to build on Valkea’s groundwork.

Broader Exploration and Joint Venture Framework

Alongside the O'Connors drilling, S2 has conducted soil sampling over arsenic-in-soil anomalies near the historic Wedderburn goldfield in the Bendigo Zone. These anomalies, extending over two kilometres, have not been previously assayed or drilled, representing an additional frontier for discovery.

Under the earn-in agreement, S2 can acquire an 80% interest in Yeungroon and two other projects by sole funding $1.2 million in exploration over four years. This arrangement follows S2’s sale of its Finnish assets to Valkea, in which S2 retains a substantial shareholding. The earn-in is contingent on regulatory approvals, expected imminently, and includes provisions for land access negotiations and potential royalty arrangements.

Looking Ahead

The drilling program is scheduled for completion within three weeks, with assay results anticipated in April 2025. These results will be pivotal in determining the next phase of exploration, including potential grid-based drilling if significant gold-arsenic hotspots are identified. S2’s methodical approach, combining historical data validation with targeted fieldwork, positions the company to capitalize on the rich mineral endowment of the Victorian Goldfields.