S2 Resources Ltd (ASX:S2R) has entered into a binding agreement with private company Black Raven Mining Pty Ltd (BRM) to earn a majority interest in a group of tenements known as the Jillewarra project located approximately 50 kilometres west-northwest of Meekatharra in the Murchison goldfields of Western Australia.
The Jillewarra project covers an area of 790 square kilometres and a strike length of 50 kilometres of a greenstone belt that is considered highly prospective for gold and base metals.
Although the project area has been subject to intermittent prior exploration, drilling is of limited extent, effectiveness, and depth, and the exploration potential is high.
The project area contains a number of historic gold workings along several trends. Limited and relatively shallow drilling of some of these has intersected high grade gold mineralisation, but despite this there is relatively little drilling to outline the lateral or down dip limits of the known mineralisation, or to systematically test along strike on the broader trends.
As an example of the project’s potential, gold mineralisation at the Dorothy prospect is hosted by narrow sulphide-rich quartz veins dipping moderately to the SW within a southerly plunging shoot.
Effective drill testing of the Dorothy prospect has been limited to predominantly reverse circulation (RC) drilling immediately around historical workings, with better results including: 3m @ 40.9 g/t gold from 29m; 4m @ 33.8 g/t gold from 33; and 4m @ 33.3 g/t gold from 35m.
The prospect remains virtually untested beyond a depth of 70 metres other than three widely spaced RC step-out holes that failed to effectively test the down-plunge extensions, and untested along strike.
Another example is the Margueritta prospect, located approximately 1.5 km southeast of Dorothy along the same structural corridor.
At a district scale, the project is located midway between the Tier 1 Golden Grove Zn-Cu-Au mine and the high grade DeGrussa Cu-Au mine. T
he project area contains felsic volcanic stratigraphy considered prospective for VMS style mineralisation, and several coincident multi-element (Cu-Zn-Pb-Ag) soil anomalies such as those at the Woods and Selga- King localities.
This prospectivity is further enhanced by the presence of a cluster of untested non-stratigraphic electromagnetic (EM) conductors up to 800 metres long, barite occurrences, and even an occurrence of galena (lead sulphide) found at a depth of 80 centimetres below surface by prospectors whilst metal detecting for gold.
S2’s Executive Chairman, Mark Bennett, said the company ilooking forward to working with Black Raven to explore this prospective greenstone belt located in the best mining jurisdiction in the world.
“This move is part of our strategy to increase exposure to Western Australia, to balance our current nickel dominated projects with a gold and copper-zinc-lead-silver focussed opportunity, and to supplement our current early stage projects with drill-ready prospects.
“It is pleasing to be able to do so in a deal structure which maximises our chance of success by being largely based on in-ground expenditure, and which also minimises dilution of our capital structure by virtue of the scrip consideration representing a modest 1.6% of our issued capital. “This project, together with our other new nickel projects in Western Australia, our gold and nickel projects in Finland, our strong cash balance, and our strategic investment in WA and NT focussed explorer Todd River Resources positions the Company well for future success.”
