Polar Bear Project (100%)
The Polar Bear project spans an area of 151 square kilometres, located between Higginsville and Norseman, and is surrounded by the major gold camps of Norseman (10 million ounces), St Ives (12 million ounces) and Higginsville (2 million ounces). In addition, S2 Resources has over 358 square kilometres of ground under application adjacent to the Polar Bear project.
Most of the area is unexplored or ineffectively explored due to it being largely concealed by the shallow salt lake sediments of Lake Cowan and the sand dunes of the Polar Bear peninsula.
The Polar Bear project contains a number of shear zones of the type that host gold mineralisation elsewhere in the district, and also contains southern extensions of the Kambalda and Widgiemooltha ultramafic stratigraphy, which hosts a number of world class nickel sulphide mines along strike to the north.
Baloo Gold Deposit
The Baloo deposit is located approximately 15 kilometres east of the Higginsville gold mine, at the northern end of the Polar Bear project
In late 2014, reconnaissance aircore drilling of the Baloo gold target identified gold mineralisation within variably weathered rock beneath a thin veneer of salt lake sediment. Subsequent drilling defined a significant zone of mineralisation and a maiden Mineral Resource estimate was complete in early 2016.
Gold mineralisation occurs in at least two structures (the Main Zone and Footwall Zone) as well as within a number of flat lying supergene layers in the hanging wall (to the east side) of the Main Zone. The Main Zone has been defined over a strike length of 450 metres and includes a central "sweet spot" within the oxide zone averaging approximately 40m thick, 80m along strike and 80m down dip. The localised thick oxide zone forms a funnel shaped zone of mineralisation starting from a depth of just two metres beneath the lake surface, an ideal shape for a potential open pit.
Primary gold mineralisation, associated with quartz-arsenopyrite veining, occurs beneath and to the south of the oxide gold zone at Baloo. Drill intercepts in the primary zone have defined a mineralised shoot which plunges gently to the south over a strike length of at least 180 metres. Key intercepts, considered approximate true width, include 5m @ 6.91 g/t gold from 92 metres, 8m @ 5.14 g/t gold from 106 metres, 7.6m @ 8.35 g/t gold from 125.2 metres and 9.8m @ 4.97 g/t from 111.5 metres.
Latest drilling has shown that the Baloo mineralised system remains open to the south, as a narrow high grade lode, indicating the system is still "live" beyond the current limits of drilling. Key intercepts from this zone include 1m @ 43.1 g/t gold from 97m, 1.25m @ 9.52 g/t gold from 216.6 metres, 0.6m @ 14.0 g/t gold from 188.6 metres and 2.5m @ 10.9 g/t gold from 157.4 metres.
A maiden Mineral Resource estimate for Baloo was announced in March 2016. The Mineral Resource estimate for the Baloo gold deposit comprises 2,170,000 tonnes grading 1.8 g/t gold for a contained 123,000 ounces of gold at a lower cutoff grade of 0.8 g/t gold. Of this, 1,150,000 tonnes (or 53%) containing 69,000 ounces of gold (or 56%) of this is classified as higher confidence indicated category material, with the balance being lower confidence inferred category material.
Near surface oxide and transitionial mineralisation comprises approximately 61% of the total Mineral Resource and 81% of the Indicated Resource, and this extends south and north from the central zone. The remainder of the resource comprises a deeper primary lode, which plunges to the south and remains open at depth.
Other gold prospects
The Monsoon gold prospect is located 4 km south of the Baloo Gold Deposit, along the same prospective trend beneath Lake Cowan. A reconnaissance aircore drilling program on an 80 metre by 40 metre grid has defined sporadic mineralisation over a 1 kilometre strike length, associated with quartz veining and arsenopyrite alteration within a north-northeast trending shear zone on a mafic – shale contact. The best results achieved to date include 12 metres at 16.9g/t from 68 metres and 32 metres at 2.47g/t from 16 metres.
The Earlobe prospect is well advanced with drill intersections that include 8m @ 5.56g/t, 4m @ 4.95g/t, 2m @ 26.6g/t and 4m @ 6.09g/t gold. The known gold mineralisation is split into an upper and lower gold lode with individual quartz veins up to 4 metres thick. Both lodes remain open along strike and down dip and as yet the limits of this mineralisation have not been defined.
At the Bindy and Nanook prospects, reconnaissance drilling has confirmed the presence of extensive gold mineralisation with the Nanook anomaly defined over 2 kilometres and the Bindy anomaly over 1.8 kilometres. Aircore drill intersections for the Nanook Prospect include 13m @ 23.89g/t, 8m @ 2.89g/t, 6m @ 2.71g/t and 9m @ 2.54 g/t gold. Equally strong results were achieved for the Bindy prospect with 8m @ 3.96g/t gold found within the core of the gold anomaly.
Taipan nickel prospect
Drilling of prospective ultramafic stratigraphy has defined a zone of high grade nickel-copper-cobalt-platinum-palladium mineralisation at the Taipan nickel prospect.
Nickel sulphide mineralisation has been defined over a strike extent of 250 metres and down dip over 150 metres within two zones. Both zones are open along strike. RC and diamond intersections include:
- 4.10 metres @ 3.8% nickel, 2.45% copper, 0.08% cobalt, 1.6 g/t palladium and 0.9 g/t platinum from 104.4 metres, including 2.15 metres @ 5.84% nickel, 3.73% copper, 0.12% cobalt, 1.65 g/t palladium and 1.1 g/t platinum from 106 metres;
- 20 metres @ 0.62% nickel, 0.10% copper, 0.02% cobalt, 0.17 g/t platinum and 0.39 g/t palladium from 113 metres including 2 metres @ 1.46% nickel, 0.43% copper, 0.03% cobalt, 1.69 g/t palladium and 0.67 g/t platinum and from 131 metres; and
- 53 metres @ 0.53% nickel, 0.05% copper and 0.01% cobalt from 23 metres.
Disseminated nickel sulphide mineralisation has also been intersected at the base of a thick ultramafic package at the Taipan North prospect, located approximately 2 kilometres north of Taipan. To date mineralisation has been intersected over a 200 metre strike length and is open along strike and at depth. RC drill intercepts include 40 metres @ 0.47% nickel, 0.02% copper and 0.01% cobalt from 99 metres, including 5m @ 1.02% nickel, 0.09% copper and 0.02% cobalt from 109 metres.
Halls Knoll nickel prospect
The Halls Knoll gossan, located on an island approximately 1.2 kilometres southeast of the Taipan nickel prospect, has yielded extremely high levels of nickel, copper and platinum group metals indicative of the presence of massive nickel sulphide mineralisation. Initial drilling intersected disseminated nickel sulphides beneath the salt lake surface, with individual metre values up to 2.5% nickel, 1.5% copper and 1-2g/t palladium and platinum.
Drill intercepts to date include:
- 10.2 metres @ 0.44% nickel, 0.1% copper, 0.25 g/t palladium, 0.1 g/t platinum from 60.8 metres; and
- 9 metres @ 1.02% nickel, 0.22% copper, 0.11 g/t palladium and 0.06 g/t platinum from 2 metres.