S2 holds an area of 586 square kilometres in the prospective Central Lapland Greenstone Belt (“CLGB”) of northern Finland via a mix of granted Exploration Licences, Exploration Licence applications and exploration reservations. These areas have not been extensively or effectively explored in the past, despite the CLGB hosting “world-class” gold and nickel-copper-cobalt-PGE deposits, including Agnico Eagle’s 7.4 million ounce Kittilä gold mine, Boliden’s 298 million tonne Kevitsa copper-nickel-gold-PGE mine and Anglo American’s 44 million tonne Sakatti nickel-copper–PGE deposit.
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On the Paana Central tenement, deeper diamond drilling (>100 metres below surface) was undertaken at the Aarnivalkea prospect in two campaigns, one in October 2020 and a second commencing in early July 2021. The October 2020 program comprised four holes aimed at testing below a 1,300 metre long zone of anomalous gold detected in 2018 to 2019 shallow scout diamond drilling. All four holes intercepted gold mineralisation with best intercepts of 6.8 metres at 11.8g/t gold from 223.0 metres, including 4.0 metres at 18.1g/t gold from 223.0 metres in hole FAVD0062 and 20.4 metres at 4.0g/t gold from 193.1 metres, including 8.5 metres at 8.6g/t gold from 198.0 metres in hole FAVD0064. These encouraging results prompted a follow-up program which unfortunately was delayed to July 2021 due to limited drill rig availability in Finland. Drilling is currently underway with at least fourteen 240 to 520 metres deep holes planned over a 1,300 metre strike length at Aarnivalkea.
Reconnaissance diamond drilling was also conducted at the Aarnivalkea East target to test a base of till (BoT) gold anomaly. Thirteen wide spaced holes confirmed a strongly altered and deformed shear zone with numerous zones of narrow gold anomalism with the best individual intercept of 3.7 metres at 0.86g/t gold from 85.0 metres in hole FPAD0005.
Surface geochemical sampling was undertaken at S2’s northernmost tenure in the CLGB on the Pahasvuoma licence. This was the first on-ground exploration by S2 in the region and results will assist future gold targeting. Infill surface geochemistry was also undertaken on the Keulakkopää licences to the southeast of Rupert Resources Ikkari gold discovery to follow up on Au-As-Ag-Cu-Sb anomalies identified during an ionic leach soil campaign in 2018.
At the Rupoas project, S2 has carried out reconnaissance exploration for magmatic nickel-copper-PGE mineralisation, including BoT drilling and ground electromagnetic (EM) surveys. In September 2021, S2 completed two diamond holes into the Ruopas Isovaara EM plate, intersecting two 20-30cm zones of semi-massive sulphides, comprising predominately pyrrhotite (iron sulphide) with minor chalcopyrite (copper sulphide), associated with quartz veining. Assay results, primarily to determine precious metal content, were still pending at time of writing this report.
In June 2021, S2 entered into a farm-in option agreement with Kinross Gold Corporation (K:TSX) on four Exploration Licence and licence applications covering an area of 83 square kilometres prospective for gold mineralisation. Under the agreement, Kinross can spend up to USD9.5 million (approximately A$13.1 million) to earn a 70% interest in the Palvanen/Mesi and Home blocks, with a minimum expenditure requirement of USD3.5 million over the first three years. In August 2021, S2 entered into another farm-in option agreement on two Exploration Licence applications covering an area of 37 square kilometres with Rupert Resources (RUP:V). Under this agreement, Rupert can spend up to EUR3.4 million (approximately AUD5.5 million) to earn a 70% interest in the Sikavaara East and Sikavaara West licences, with an initial expenditure requirement of EUR1.2 million over the first three years. Following these two agreements, S2 still retains 100% ownership of 461 square kilometres of additional tenure in the CLBG, incorporating the Aarnivalkea gold prospect and the Ruopas nickel target.
Both gold and base metal exploration is ongoing in the CLGB.