S2 Resources has secured key exploration licences covering 35 kilometres of the Karbah shear zone and plans to launch a 30,000-metre aircore drilling campaign starting July, targeting a major gold-bearing structure in Western Australia.
- Two large exploration licences granted for Jillewarra Joint Venture
- 30,000-metre aircore drilling program planned from July
- Aeromagnetic survey completed, results expected in July
- S2 earning 51% interest by spending A$5 million by October
- Project targets extensions of multi-million ounce gold deposits
Tenements Granted Over Prospective Gold Structure
S2 Resources Ltd (ASX:S2R) has taken a significant step forward in its Jillewarra Joint Venture (JJV) with Black Raven Mining, securing two large exploration licences granted by the Western Australian Department of Mines, Petroleum and Exploration. These licences cover 35 kilometres of strike along the Karbah shear zone (KSZ), a major geological structure considered the northern continuation of the same shear zone that hosts Westgold’s 2.4 million ounce Big Bell mine and Ramelius Resources’ 2.9 million ounce Dalgaranga operations.
Combined with an additional 25 kilometres of strike held under a 100% S2 exploration licence application immediately north, the company controls 60 kilometres of this largely undercover and unexplored gold-bearing structure, positioning it well within a prolific gold province stretching from Mt Magnet to Meekatharra.
Imminent Drilling to Kick Off Reconnaissance Program
With environmental approvals being lodged this week, S2 plans to commence a 30,000-metre aircore drilling program in July, deploying two rigs over a two to three month campaign. The initial program is designed as a wide-spaced reconnaissance effort, comprising approximately 300 holes on broad lines to assess geology, structure, cover depth, and the presence of gold and pathfinder anomalies.
The company acknowledges that given the broad spacing and early stage of exploration, it may take multiple drilling campaigns to identify any significant mineralisation hotspots. However, this first systematic drilling marks a critical phase in evaluating the KSZ’s potential as a major gold corridor.
Aeromagnetic Survey Enhances Geological Understanding
Complementing the drilling plans, a detailed aeromagnetic survey covering the entire 60-kilometre strike of the KSZ has been completed, with results expected in July. This high-resolution geophysical data will underpin the creation of detailed geological, structural, and regolith maps, providing essential guidance for both the initial aircore drilling and future, more targeted exploration efforts.
These steps follow a heritage protection agreement signed with the Wajarri Yamaji people, which is a prerequisite for exploration licence grants and ensures the company can operate with cultural and environmental considerations addressed.
Farm-In Agreement and Earn-In Progress
S2 is earning an initial 51% interest in the Jillewarra JV by spending A$5 million by October 2026. As of the end of May 2026, the company had already invested A$3.8 million in exploration activities across the project area. The forthcoming aircore drilling program is expected to contribute significantly toward meeting this expenditure milestone.
This earn-in arrangement reflects a strategic approach to advancing the project through systematic exploration while managing capital deployment. The Jillewarra JV targets extensions of known multi-million ounce gold deposits, offering potential upside if exploration confirms significant mineralisation.
Bottom Line?
The upcoming aircore drilling and aeromagnetic results will be pivotal in unlocking the Jillewarra JV’s potential, but the wide initial drill spacing means investors should temper expectations for immediate discoveries.
Questions in the middle?
- Will the initial reconnaissance drilling identify any high-priority gold anomalies along the Karbah shear zone?
- How will the aeromagnetic survey data refine targeting and influence subsequent drilling campaigns?
- What is the timeline for securing environmental and heritage approvals for the remaining 25 kilometres of S2-owned tenure?