S2’s Glenlogan Drilling Disappoints as Warraweena and West Murchison Show Mixed Signals

Exploration Momentum Builds at Warraweena

S2 Resources Ltd has taken a significant step forward in its exploration campaign with the commencement of reconnaissance diamond drilling at its Warraweena project in New South Wales. This initiative follows an expanded detailed gravity survey that has identified multiple compelling geophysical targets beneath younger cover rocks. The project area, largely unexplored due to transported alluvium, hosts anomalies suggestive of a range of deposit types including copper-gold porphyries, iron oxide copper-gold systems, and magmatic nickel-copper-PGE intrusions.

Historical drilling from the 1980s, recently revisited and logged by S2, revealed encouraging alteration and mineralisation signatures, notably gold intercepts associated with intense hydrothermal alteration and base metal sulphides. These findings provide a strong proof of concept and underpin the current drilling program aimed at characterising the basement geology and refining future target selection.

Strategic Expansion at Jillewarra and West Murchison

In Western Australia, S2 has expanded its footprint at the Jillewarra project by pegging additional ground to extend coverage of the Karbah shear zone, a structure known to host significant gold deposits such as Westgold’s Big Bell mine. This expansion increases the prospective strike length under S2’s control to approximately 60 kilometres, presenting a substantial exploration opportunity in a largely concealed and underexplored region.

Meanwhile, at the West Murchison nickel-copper-PGE project, recent reverse circulation drilling has confirmed the presence of anomalous copper and precious metals within a thick gabbroic intrusion. Although grades remain modest, the spatial separation of copper sulphide and PGE mineralisation zones suggests a complex magmatic system worthy of further investigation. Petrological studies are underway to better understand the mineralisation style and guide subsequent exploration.

Mixed Results at Glenlogan and Financial Position

Drilling at the Glenlogan copper-gold project in New South Wales, targeting a porphyry-style system, did not return significant assay results this quarter. The hole intersected altered intrusives and minor sulphides but failed to explain the geophysical anomalies that prompted the drill program. Despite this setback, Glenlogan remains a key part of S2’s portfolio given its location within the highly endowed Lachlan Fold Belt.

On the corporate front, S2 successfully completed the second tranche of its June private placement and an oversubscribed Share Purchase Plan, collectively raising approximately A$0.61 million. The company ended the quarter with a healthy cash balance of A$3.1 million and holds a substantial 29.55% stake in TSXV-listed Valkea Resources, valued at around A$5.5 million. This investment provides both financial flexibility and strategic exposure to exploration in Finland’s Central Lapland Greenstone Belt.

Looking Ahead

Planned expenditure for the December quarter is forecast at approximately A$1.6 million, reflecting ongoing drilling, geophysical surveys, and preparatory work across S2’s diverse project portfolio. The company continues to navigate heritage negotiations and regulatory approvals, particularly at Jillewarra, which will be critical to unlocking the full potential of its ground holdings.

While early-stage exploration results are mixed, the combination of new drilling data, expanded tenement positions, and a solid financial base positions S2 Resources to advance its multi-commodity strategy across Australia and internationally.