S2 Resources Advances Multi-Front Exploration with Key Drilling and Strong Cash Position

Exploration Momentum Builds Across Key Projects

S2 Resources Ltd has delivered a comprehensive update on its exploration activities for the March 2025 quarter, highlighting advances across multiple projects in Australia and Finland. The company’s strategic focus on expanding its footprint in prolific gold and base metal regions is underscored by the completion of several geophysical surveys and drilling programs, with assay results eagerly awaited.

At the Greater Fosterville Project in Victoria, S2’s 100% owned subsidiary Southern Star Resources completed an induced polarisation (IP) geophysical survey that identified three significant chargeability and resistivity anomalies. Follow-up aircore drilling over two of these anomalies has been completed, with assay results expected by mid-May. These anomalies are particularly compelling given their similarity to disseminated sulphide haloes known to surround gold mineralisation at the adjacent world-class Fosterville Gold Mine operated by Agnico Eagle.

Meanwhile, at the Glenlogan copper-gold project in New South Wales, S2 has progressed its earn-in joint venture with Legacy Minerals by completing tensor induced polarisation and magnetotelluric surveys. These surveys revealed coincident chargeability, resistivity, and conductivity anomalies consistent with a classic porphyry copper-gold system. A diamond drilling program is scheduled to commence in May to test these targets, potentially unlocking significant value in this highly prospective Lachlan Fold Belt region.

Expanding Footprint in Victoria and Western Australia

S2’s exploration efforts in central Victoria continue with the completion of an aircore drilling program at Yeungroon, targeting arsenic-gold anomalous zones. Assay results are anticipated in late April, which will provide critical insights into the potential for gold mineralisation beneath transported cover. Additionally, a new joint venture at Glenfine offers access to historical data and drill core, enabling S2 to refine targets for future drilling campaigns.

In Western Australia, heritage surveys have been completed at the West Murchison nickel-copper-PGE project, paving the way for upcoming reverse circulation drilling to test recently identified polymetallic soil anomalies. This project targets mafic-ultramafic intrusions analogous to those hosting world-class magmatic sulphide deposits such as Nova-Bollinger and Julimar.

Significant Progress in Finland via Valkea Resources

Through its 44.6% equity stake in TSXV-listed Valkea Resources, S2 benefits from exploration success in Finland’s Central Lapland Greenstone Belt. Valkea’s maiden diamond drill program at the Aarnivalkea gold prospect has confirmed two distinct mineralised zones, Koivu and Honka, with notable intercepts including 36.45 metres at 1.5 g/t gold and 10.25 metres at 1.45 g/t gold. These results validate the continuity of broad mineralised zones and highlight the prospect’s potential for expansion along strike and at depth.

Financial Position and Outlook

Financially, S2 Resources ended the quarter with a cash balance of A$2.2 million after spending approximately A$1.3 million on operating activities, predominantly exploration and evaluation. The company holds significant equity positions in Valkea Resources and Trinex Minerals, valued at approximately A$3.2 million and A$38,000 respectively. Planned expenditure for the next quarter is forecast at around A$1 million, reflecting a disciplined approach to advancing multiple projects simultaneously.

While no substantive mining production occurred during the quarter, S2’s strategic investments in exploration and joint ventures position it well to capitalise on upcoming assay results and drilling outcomes. The company continues to engage with traditional owners and regulatory bodies to secure heritage approvals and tenement grants essential for progressing its exploration agenda.