Warraweena project, New South Wales (S2 earning 70%)In December,...

Warraweena project, New South Wales (S2 earning 70%)In December, the Company entered into an agreement with private prospect generator company Oxley Resources Limited (“Oxley”) to earn a 70% interest in the Warraweena project, which comprises Exploration Licence EL9269 covering an area of 932 square kilometres, located to the northeast of Bourke in northern New South Wales (see S2 ASX announcement of 4th December for details of the project and earnin terms).

S2 identified the area as an attractive target based on the presence of coincident distinct, unexplained gravity and magnetic anomalies (see Figures 5 and 6), concealed beneath the transported cover of the upper Darling River drainage catchment and younger overlying rocks. Limited previous drilling that has penetrated into the basement rocks has also identified mafic (and possible ultramafic) rocks associated with these anomalies.

Furthermore, it is also the location of a strongly anomalous heavy mineral concentrate sample identified in the Australia-wide Heavy Mineral Map of Australia publicly released on 12th October 20232. This heavy mineral concentrate sample contains the highest number of pentlandite (nickel sulphide) grains recorded in any of the 1,315 samples collected in the Australia-wide survey (10x the next largest sample). It also contains the second highest concentration of chalcopyrite (copper sulphide) and sphalerite (zinc sulphide) of all samples in this survey (see Figure 7).

^^^ Interesting.