S2 Resources Granted Tenements and Identifies Multiple Copper-Gold Porphyry Targets at Loch Lilly Project NSW

Loch Lilly Project Secures Full Tenure and Exploration Pathway

S2 Resources Ltd (ASX:S2R) has cleared a major hurdle by securing all exploration licences over the Loch Lilly project, a 955 square kilometre belt located 70 kilometres southeast of Broken Hill, New South Wales. This belt-scale tenure grant unlocks access to a largely unexplored geological province with strong copper-gold porphyry and volcanogenic massive sulphide (VMS) potential, setting the stage for systematic exploration activity including geophysical surveys and drilling.

The project tenure comprises two joint venture licences where S2 can earn up to 75% interest and one 100% S2 licence, collectively covering a 100-kilometre strike of the Loch Lilly-Kars Belt (LLKB). This corridor is geologically analogous to world-class mineral provinces such as Tasmania's Mt Read Volcanic belt and Victoria's Stavely Volcanic belt, both renowned for copper-gold and polymetallic deposits.

Historical Data Highlights Two Porphyry Targets Ready for Follow-Up

Despite limited historical drilling; just 31 holes of various types across the entire project; the Eaglehawk and Netley prospects have emerged as priority targets. Both show classic porphyry-style magnetic and gravity anomalies, hydrothermal alteration zones, and geochemical signatures consistent with fertile copper-gold systems. Historic drillholes intersected porphyritic intrusions with calc-potassic and propylitic alteration, skarn features, and anomalous copper and gold values, but drilling was too widely spaced or incomplete to fully test the targets.

For instance, Eaglehawk's last drillhole in 2017 returned weakly elevated gold (0.04 g/t) and copper (341 ppm) within quartz monzonite and granodiorite intrusions, with alteration typical of near-porphyry environments. Netley’s 2017 hole was abandoned before reaching the main magnetic source but intersected 73.3 metres averaging 0.03% copper from 355.7 metres, including a higher-grade 0.6 metres at 0.11% copper. Petrographic studies confirm potassic alteration minerals consistent with proximity to an intrusion heat source, strengthening the porphyry target case.

Multiple Blind Porphyry Targets Identified Across the Belt

Beyond Eaglehawk and Netley, S2 and Mitre Geophysics have identified several undrilled, blind porphyry-style targets scattered throughout the LLKB. These are characterised by discrete, non-stratigraphic magnetic highs with demagnetised halos, interpreted as late-stage Siluro-Devonian porphyritic intrusions with associated magnetite-destructive alteration halos. Ground-based magnetic induced polarisation (MIP) and induced polarisation (IP) surveys are planned to refine these targets ahead of drilling.

This extensive target portfolio is particularly notable given the belt’s sparse historical exploration, with only ten reverse circulation, seventeen diamond core, and four coil-tube holes drilled to date. The Loch Lilly project’s proximity to established infrastructure including road, rail, and power corridors near Broken Hill adds to its strategic appeal.

Joint Venture Terms Offer Clear Path to Majority Ownership

The project is held under an earn-in joint venture agreement with San Antonio Exploration Pty Ltd. S2 has committed to spending A$3 million within three years to earn a 51% interest, with a minimum spend of A$1 million before withdrawal. A further A$3 million spend over two additional years can increase S2’s stake to 75%. San Antonio has the option to convert its interest to a 10% carried interest or maintain a participating interest subject to dilution and a net smelter return royalty.

This structure gives S2 operational control and flexibility to manage exploration while leveraging San Antonio’s regional expertise. The company will soon begin landholder access negotiations, a critical step before commencing geophysical surveys at priority prospects such as Eaglehawk and Netley.

The Loch Lilly project’s potential has been bolstered by recent geochemical studies and radiometric dating confirming the presence of fertile Siluro-Devonian intrusions, a previously underappreciated mineralisation window in the belt. These insights complement the historical drilling and geophysical data, providing a compelling rationale for the upcoming exploration campaign.

Investors may recall S2’s earlier announcement of the earn-in agreement for Loch Lilly-Kars in January 2026, which laid out the strategic vision for the project. The current tenement grants and target identification mark the transition from early-stage option to active exploration phase, a significant milestone for the company’s NSW portfolio and copper-gold ambitions.

In line with its broader exploration strategy, S2 has also been advancing other projects with promising gold and copper anomalies, including recent soil anomaly expansions at Yeungroon in Victoria and heritage agreements unlocking new gold zones in Western Australia. These developments illustrate S2’s multi-commodity focus and growing footprint in Australia’s mineral provinces.