S2R - S2 Resources

[Dona Ferentes]

Gee a brain numbing wait and finally SR2 gets to drill roadsides. A hand wringing thankyou to the great Victorian government, Bendigo council and especially the gracious Dja Dja Wurrung traditional owners who adhere fiercely to their ancient cultural beliefs. And SR2 has to spend $10.4m.

in terms of an exploration program, the first steps seem eminently sensible.
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"The overall purpose of this initial diamond drilling is to locate the down plunge extension of selected stratigraphic and structural targets previously identified in drilling undertaken by Kirkland Lake prior to the statutory relinquishment of the ground. More specifically, the intended outcome is to define the overall stratigraphic and structural architecture as a vector to guide more targeted follow up drilling. Fulldetails of this drilling program will be disclosed in the next announcement."
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of course it takes time. so many competing elements.

"These targets are located on a mix of Crown Land, freehold land (both broadacre farms and smaller blocks), and road reserves, which require the Company to obtain land access agreements and other relevant permits, as well as heritage clearances, before commencing exploration..."

 

[Sean K]

in terms of an exploration program, the first steps seem eminently sensible.
.
"The overall purpose of this initial diamond drilling is to locate the down plunge extension of selected stratigraphic and structural targets previously identified in drilling undertaken by Kirkland Lake prior to the statutory relinquishment of the ground. More specifically, the intended outcome is to define the overall stratigraphic and structural architecture as a vector to guide more targeted follow up drilling. Fulldetails of this drilling program will be disclosed in the next announcement."
.
of course it takes time. so many competing elements.

"These targets are located on a mix of Crown Land, freehold land (both broadacre farms and smaller blocks), and road reserves, which require the Company to obtain land access agreements and other relevant permits, as well as heritage clearances, before commencing exploration..."

Yes, smart play to drill at known mineralisation (I assume that's what that all means) so they start with some holes that hit gold. If they start with dusters it'd be pretty negative and quite possibly embarrassing considering they have all the historical drilling.

My tip is they hit a Swan Zone with their first hole.

 

[Dona Ferentes]

well, good luck

 

[Sean K]

New preso out titled 'Activities Update', but there's not much to update other than their philosophy of exploration and creating value.

Looks like Goornong is going to be the first drill holes across areas previously drilled by Kirkland which hit some gold. Nothing really spectacular but there's some decent grades there. Looks like the holes will be down to 600m ish. They might have to drill 2km down to find their own Swan Zone.

This is not quite throwing darts or rolling dice due to the hysterical drilling and management / major investors have had some success. I'm more backing them than the ground.

 

[Sean K]

Drilling for a Swan Zone started. But, as discussed, limited by where they can actually access. They are trying to set a low bar on the prospect of finding millions of ounces at 50g/t which is a good idea, but that's what we want...

Only one rig drilling? Zzzzzzzzz

Wake me up when the results come out in mid 2024.

Whilst the definition of gold mineralisation is a desired outcome of this drilling, the bigger picture objective is to better define the structural and stratigraphic architecture of the Goornong South trend, to define vectors to positions where otherwise insignificant structures have the potential to host significant mineralisation. An important focus for S2 is to gain an understanding of the area’s overall potential for a large gold deposit without getting drawn into close spaced drilling of targets that may never deliver sufficient tonnages to be economic, and the planned drill holes are spaced accordingly.

The drilling program will comprise a single rig operating primarily on a double-shift basis. It is expected that this first program will extend into February 2024, with the flexibility to modify later holes based on the knowledge gained from earlier drilling. Detailed structural and stratigraphic logging will be undertaken at the Company’s Bendigo field base (see Figure 5), with initial assay results expected around mid-December.

 

[Sean K]

Not sure when the first drill results will be in from the 'roadside' drilling, hopefully this quarter. Would like to think that 16.5c is a floor and the volume over the last couple of months is good support. Hopefully their dart throwing hits something.

 

[Sean K]

Got excited for a second hoping they'd hit 100m@50g/t but, nope... :-(

 

[finicky]

Just rereading the thread before intending to post the above announcement preempted by Sean K.
Another fricken cap raise 9 months on from the last one. Don't think I'll be lured into buying more of this. I find meat and potato companies that pay dividends more enticing these days.

Held

For purposes of ASX Listing Rule 17.1, and in support of its request, the Company advises that:
1. The trading halt is requested pending an announcement by the Company to the market
in relation to a proposed capital raising;

 

[Sean K]

Just rereading the thread before intending to post the above announcement preempted by Sean K.
Another fricken cap raise 9 months on from the last one. Don't think I'll be lured into buying more of this. I find meat and potato companies that pay dividends more enticing these days.

Held

For purposes of ASX Listing Rule 17.1, and in support of its request, the Company advises that:
1. The trading halt is requested pending an announcement by the Company to the market
in relation to a proposed capital raising;

Was only a matter of time but they must have another few months to keep the lights on. I was anticipating the first two drill holes being announced with some traces of gold in them and then the CR. Hopefully getting in the CR before those results are announced doesn't mean dusters...

Got to take these statements such as 'adequately funded' with a grain of salt, or have a good understanding of how far $4.44m goes before a trigger is pulled.

 

[Sean K]

Did you get a call @finicky ?

The issue price pursuant to the Placement is A$0.17 per New Share, representing a modest 12.3% discount to the 5 day volume weighted average price (VWAP) of A$0.194, and a 42% premium to the Company’s last placement price of A$0.12 in February 2023.


Hopefully $7m is enough to hit a Swan Zone...

 

[finicky]

Oh yeah for sure.
I'm intending to sit on the ones I've got but very much doubt I'll add, unless the price crashes maybe. At current price I'm not compensated for this dilution is the way I see it.

Held

 

[Sean K]

Well, these numbers are pretty crap and the stock market responded appropriately. I was right on the 'dusters'. Damit.

Tempted to bail. Talk to me @finicky. Should I eject or go to guns?

 

[finicky]

Hard to say @Sean K as we have different approaches. I'm not taking any notice at all of the chart for S2R or even their drilling intentions or results. It's not the sort of company I'm interested in buying these days - looking only at gold producers and industrials, more in the @divs4ever camp.
It's a lotto ticket to me and short term results pretty meaningless. However with your trading bent, and still I believe sitting on a profit, it's a harder decision.
But on the chart, as you are pointing out, local support is broken. With results just recently announced, can't really expect a sudden bounce back on news? Also a daily gap down at 0.125 back in July which you might have noticed. Maybe the participants in the previous cap raise @ 0.12 will be getting uneasy. But the all data weekly chart shown doesn't bother me as I'm in for possible eventual success, or more likely, a handy CGT loss.

Held

WEEKLY

 

[Sean K]

Hard to say @Sean K as we have different approaches. I'm not taking any notice at all of the chart for S2R or even their drilling intentions or results. It's not the sort of company I'm interested in buying these days - looking only at gold producers and industrials, more in the @divs4ever camp.
It's a lotto ticket to me and short term results pretty meaningless. However with your trading bent, and still I believe sitting on a profit, it's a harder decision.
But on the chart, as you are pointing out, local support is broken. With results just recently announced, can't really expect a sudden bounce back on news? Also a daily gap down at 0.125 back in July which you might have noticed. Maybe the participants in the previous cap raise @ 0.12 will be getting uneasy. But the all data weekly chart shown doesn't bother me as I'm in for possible eventual success, or more likely, a handy CGT loss.

Held

WEEKLY
View attachment 167887

Yes, stroking slightly differently. My average price is 0.1393c. Not sure how that happened, but I'm still up some beer money. Maybe enough to pay GG out in the yearly comp. If I was organising their drilling campaign I probably would have twinned a couple of holes that Kirkland made through known well mineralised structures instead of what looks to be dart throws at the RIH during happy hour. But hey, I'm no georocketsurgeon so maybe there's a grander plan than just drilling by the side of roads they have access to.

 

[Sean K]

Not an elephant or a Swan in sight. Just digging up worms really.

 

[finicky]

Yeah, it's all bullsheet.
Newly acquired wisdom.

 

[Barnouste]

I too was amazed that S2 got block 4. Andrews was a one man band and maybe got involved and it was as simple as he thought Creasey was the man.

It looks fairly priced to me right now but if they find something similar to the Swan Zone this will go ballastic!

Don't forget Glenlogan

 

[Sean K]

I didn't bother putting up this ann earlier in the month because it was just blahhhhh.

We can only hope they get to take their drill rigs off the backroads of Fosterville and drill where they actually want to and not just some convenient place to park next to the road.

They should have drilled a couple of holes by now with assays in the shop for release in June. Maybe there's some gold next to the road.

 

[finicky]

Maybe there's some gold next to the road.

Lol

 

[Barnouste]

Lol

Day after day, week after week it's the same action --- there's someone getting rid of a decent holding. Yes there's got to be someone on the other side of the trade but there's one entity with a large holding that wants out and has been getting out.