Mark Bennett’s S2 Resources wins exploration block next to Fosterville gold mine, gains 90pc
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Sirius Resources spinout S2 Resources (ASX:S2R) has rocketed by more than 90% after emerging as the winner of Australia’s hottest exploration tenure next to the Fosterville gold mine in Victoria.
S2 has traversed the world from WA to Scandinavia in its search for gold and other metals since it was spun out of Sirius following the acquisition of its Nova nickel mine by IGO (ASX:IGO).
It has now landed in Victoria, where it pipped a host of other juniors to secure one of four exploration blocks released by the Victorian Government alongside one of Australia’s and highest grade gold mines in the 160-year-old Bendigo gold field.
The Victorian Government says more than $100 million will be spent over the next five years on the sought after tenements, with Kirkland Lake Gold’s Fosterville gold mine pledging to spend $90 million on three blocks and S2 subsidiary Southern Star planning to spend $10 million on Block 4.
S2’s tenure literally surrounds Fosterville, which produced more than 640,000oz at 33.9g/t in 2020 and includes the 49g/t Swan Zone orebody, including 394km2 of tenure and 55km of strike.
“The tender comprised four blocks, however S2 regards Block 4 the most prospective as it includes extensions of the Fosterville host stratigraphy, similar structures, and known gold occurrences,” the company said in a statement to the ASX today.
“These occurrences have only been sparsely and shallowly drilled, and may represent the uppermost tips of south plunging shoots analogous to those documented at Fosterville itself.”
Canadian based but dual-listed Kirkland Lake (ASX:KLA) has leveraged its own success at Fosterville and in its home nation to back a mega merger with its Canuck brethren Agnico Eagle.
Tenders were called for the ground release two years ago, and since then Victoria’s gold boom has continued to pick up pace.
According to figures from the ABS, minerals exploration expenditure in Victoria increasing by more than 35 per cent to $183.8 million in 2020-21.
The Geological Survey of Victoria believes there could be 75Moz of undiscovered gold across the fertile region of northern Victoria.
S2 expects to make the Fosterville block a major focus of its business going forward and believes it has a number of walk up targets including at Goorong South, which sits on a parallel structure to Kirkland Lake’s high grade Curie Zone discovery.
The company is led by executive chairman Mark Bennett, who won AMEC’s Prospector of the Year Award twice for masterminding the Nova-Bollinger discovery in 2013 and the Thunderbox gold mine in 2002.
“We are humbled to have been selected based our exploration track record and high focus on ESG,” S2 CEO Matthew Keane said.
“This is a highly prospective block situated in the historic and well-endowed Bendigo goldfields.
“It has real potential for “company making” discoveries and S2’s highly experienced team is excited to get on the ground and commence work.
“This is an accredited gold exploration team, having been responsible for multiple gold mine discoveries in the past, including Thunderbox and Baloo in Western Australia and Wahgnion in Burkina Faso, as well as the major Nova-Bollinger nickel-copper mine in Western Australia.
“This block is a valuable addition to S2’s existing portfolio of high quality gold and base metal projects in Australia and Finland.”