The article as mentioned in previous post....S2 Resources...

The article as mentioned in previous post....

S2 Resources (ASX:S2R)

Mark Bennett’s famed history of discoveries in gold and nickel has made his firm S2 Resources a closely watched explorer since its spin out in the deal that sold Sirius and its famous Nova nickel and copper discovery to IGO (ASX:IGO) eight years ago.

Since then the company led by the rock kicker behind not only Nova but also the legendarily named Thunderbox gold mine (now operated by soon to be Australia’s biggest gold miner Northern Star Resources (ASX:NST)) has tested some interesting prospects in WA’s Goldfields and Scandinavia without making a breakthrough.

But its transformative pick-up of right to apply for the Greater Fosterville exploration licence in Victorian gold rush territory near Bendigo in October 2021 was a new dawn for the explorer.

It’s up near 10% on a dour day for mining stocks and for good reason.

That licence — EL7795 and previously known in deliriously bureaucratic terms as Block 4 of the Victorian Government’s North Central Victoria Gold ground release — has now been granted.

In more romantic terms the lease presents among the best opportunities of any explorer to make a discovery that follows up Kirkland Lake (and now Agnico-Eagle’s) Swan Zone find at the Fosterville gold mine back in 2016.

Swan Zone turned Fosterville into Australia’s top performing and cheapest producing gold mine, its reserve initially pulling a virtually unheard of grade of nearly 50g/t.

That’s more than 1.5 ounces to the tonne — around $4500 of gold in every tonne of ore pulled up at current prices. Most underground mines nowadays would be considered high grade at over 5g/t.

It goes without saying that Agnico would have loved EL7795, the prized portion of the ground release, abutting and surrounding the Fosterville Mine. The Canadian giant earned the right to apply for other licences in the release — and back in the Kirkland Lake days it did a bit of work there which S2 will be able to build off from before the old tenement expired — but S2’s exploration plans proved more attractive for the Victorian Government.

Covering some 394km2, it extends for a massive 55km north to south, with S2 planning to spend a minimum amount of $10.4m over the first five-year term of the licence.

A minimum $2.1m has to be spent in the first two years. Diamond drilling sites have already been identified along roadsides, with heritage clearance already obtained from the Dja Dja Wurrung traditional owners and drilling approval from the City of Greater Bendigo Council.

A contractor is expected to begin drilling in around three weeks.

“The granting of EL7795 is a significant moment for S2. It is the most strategic of the four blocks released around Fosterville, and it is the first to be granted,” S2 exec chair Bennett said.

“I would like to thank the Dja Dja Wurrung and Taungurung people, and the staff of the Victorian Earth Resources Regulator for their goodwill, guidance and diligence in this process.”