Rupert Resources To Earn 70% Of Two Licence Applications
S2 Resources Ltd (ASX:S2R), through its wholly owned Finnish subsidiary Sakumpu Exploration Oy, has entered into a binding farm-in agreement with Rupert Resources on two exploration licence applications covering an area of 37 square kilometres in the Central Lapland Greenstone Belt (CLGB) in northern Finland.
Under the Agreement, Rupert can spend up to 3.4 million Euro’s to earn a 70% interest in the Sikavaara East and Sikavaara West licences, with an initial expenditure requirement of €1.2 million over the first three years.
Sikavaara East is just 16 kilometres west of Rupert’s Area 1, host to six discoveries including the standout Ikkari discovery, where better intercepts include:
- 110.4 metres at 6.1g/t gold from 183.6 metres in hole 121019,
- 188 metres at 4.4g/t gold from 64 metres in hole 121026, and
- 167 metres at 4.2g/t gold from 213 metres in hole 120071
Sikavaara West is located six km west of Sikavaara East, and its boundary is 400 metres east of Rupert’s Hirvi project where 2019 RC drilling included intercepts of:
- 38 metres at 1.4g/t gold from 52 metres in hole 119202, and
- 53 metres at 1.3g/t gold from 72 metres in hole 119209
S2’s farm-in licences, and Rupert’s Ikkari and Hirvi projects are all located along the Sirkka Shear, a major regional thrust zone in the CLGB.
This Agreement with Rupert follows the previously announced farm-in agreement with Kinross Gold on an area covering 83 square kilometres also in the CLGB. Under this agreement, Kinross can spend up to US$9.5 million to earn a 70% interest in four licences and licence applications, with a minimum expenditure requirement of US$3.5 million over the first three years.
S2 retains 100% ownership of the licences covering its Aarni’ gold prospect, which is currently being drilled, and its Ruopas Isovaara nickel-copper target, which will be the focus of diamond drilling in the coming weeks.
CEO, Matthew Keane said the company may consider further strategic options for the balance of its large ground position, which totals 122 sq. km excluding the Aarni’/Ruopas tenure and areas subject to farm-in agreements. The CLGB is an emerging gold and base metal province, with existing world class assets including Agnico Eagle’s 7.4 million ounce Kittila gold mine and Anglo American’s 44Mt Sakatti nickel-copper-PGE deposit.
“We are very pleased to be partnering with Rupert, a company that has demonstrated its exploration capabilities with multiple discoveries in the CLGB,” Mr Keane said.
“Importantly, the farm-in licences sit within the same structural corridor that host Rupert’s emerging Ikkari discovery, making them the ideal partner for these areas. Securing quality tenure in the region is becoming increasingly difficult with little free ground left in the CLGB. S2 is now leveraging off its large ground position resulting from being an early mover in the region. Both the Rupert and the Kinross agreements will expedite exploration on a group of highly prospective licences, whilst allowing S2 to focus its funds to advance 100% owned targets.
“The September quarter will be an exciting period for our Finland projects as we follow up on high grade gold intercepts at Aarni’ and drill test the nickel-copper- PGE EM target at Ruopas Isovaara.”
For further information please visit: http://www.s2resources.com.au/
