S2R - S2 Resources

[finicky]

How remiss not to have checked out this company when I heard a long odds juniour won the best tenement that the Victorian government tendered at Fosterville. They won block 4 which wraps around the fabulous Fosterville mine (see screenshot, the tenement is aqua blue). KL xhareholders must have been spewing.

This company is a vehicle for the team that discovered the deposit that launched Sirius Resources I have uncritically read, also they discovered Nova Bollinger.

But the chart, see the monthly volume accompanying the tender win at Fosterville, I am tempted tp buy a tranche then hope for lower to add but am disinclined to spend at the moment.

Monthly

 

[Dona Ferentes]

Commenting on the successful tender, S2’s Chief Executive Officer Matthew Keane said, “We are humbled to have been selected based our exploration track record and high focus on ESG. This is a highly prospective block situated in the historic and well-endowed Bendigo goldfields. It has real potential for “company making” discoveries and S2’s highly experienced team is excited to get on the ground and commence work. This is an accredited gold exploration team, having been responsible for multiple gold mine discoveries in the past, including Thunderbox and Baloo in Western Australia and Wahgnion in Burkina Faso, as well as the major Nova-Bollinger nickel-copper mine in Western Australia. This block is a valuable addition to S2’s existing portfolio of high quality gold and base metal projects in Australia and Finland”.

looks exciting

After raising $5million in a placement in August, S2 has approx. A$11.4 million cash plus a 13.5% shareholding in Todd River Resources valued at $4.9 million.

By the start of the Quarter, S2 was fully funded to undertake exploration on multiple fronts in Australia and Finland, with September quarter activities including:
o Ongoing diamond drilling at the Aarnivalkea gold prospect in Finland
o Imminent diamond drill testing of the Ruopas Isovaara nickel-copper-PGE target in Finland
o EM and soil geochemistry surveys in progress at the West Murchison nickel-copper-PGE project in Western Australia
o Ongoing reconnaissance drilling at Jillewarra in Western Australia
o Readying for the start of exploration at the belt-scale Koonenberry nickel-copper-PGE project in New South Wales

The Victorian gold tenements are very prospective, but maybe there will be further capital needed. I note they are farming out some of their Finnish activities, and they are describing as "non-core". Divestment/ sale?

 

[finicky]

They'll need heaps to effectively drill Fosterville, it's hard rock and slow going as demonstrated by the sluggish progress of CHN, CYL NML in the Bendigo region revival.
KL would have allocated a budget to dwarf anything S2R can do - which again makes S2R's success at tender strange. A jv with KL would seem good and natural but no idea whether it is an option.
Anyway, for non holders the price has pulled back as the surge is digested. Hopefully more down and I can buy a few. Impossible to value - though it's not at a relatively high P/B for an explorer, not a high market cap.

Weekly

 

[finicky]

Looking at the daily chart of S2R and it suggests to me a strong chance of further down to say 0.15.
FOMO has struck however and I have bid for a fair chunk @ 0.18 over the w/e. But I am going against the chart imo. There was a capital raising @ 0.12 back in August generating 40m shares but I suspect most of those would have settled by now.

I didn't know that S2R was spun out with the non core assets of Sirius Resources in 2015 as part of the friendly takeover by IGO targeting the Nova-Bollinger deposits. So S2R still retains some of the tenements from that era, including a couple that are not all that far from Nova-Bollinger in the Fraser Ranges. Almost all the senior management from Sirius days seem to be on the board or management of S2R, the key one I guess being Mark Bennett, Exec chair of S2R who is the ex M.D of Sirius.

So while I am primarily going for it for the Fosterville tenement, I am also following the management and as well their other projects look a hope, particularly the Northern Finland tenements in a greenstone belt that hosts a few majors. They have two jvs in Finland, one of them being with Kinross who are spending A$13m for a 70% interest, the other jv partner is spending A$5.5m.

Daily

 

[Sean K]

Looking at the daily chart of S2R and it suggests to me a strong chance of further down to say 0.15.
FOMO has struck however and I have bid for a fair chunk @ 0.18 over the w/e. But I am going against the chart imo. There was a capital raising @ 0.12 back in August generating 40m shares but I suspect most of those would have settled by now.

I didn't know that S2R was spun out with the non core assets of Sirius Resources in 2015 as part of the friendly takeover by IGO targeting the Nova-Bollinger deposits. So S2R still retains some of the tenements from that era, including a couple that are not all that far from Nova-Bollinger in the Fraser Ranges. Almost all the senior management from Sirius days seem to be on the board or management of S2R, the key one I guess being Mark Bennett, Exec chair of S2R who is the ex M.D of Sirius.

So while I am primarily going for it for the Fosterville tenement, I am also following the management and as well their other projects look a hope, particularly the Northern Finland tenements in a greenstone belt that hosts a few majors. They have two jvs in Finland, one of them being with Kinross who are spending A$13m for a 70% interest, the other jv partner is spending A$5.5m.

I owned Sirius at one stage prior to the Nova discovery...

Management have a pretty good record.

Should see a bump at 17c I think finicky.

How they got that Fosterville Block over Kirkland (assuming they bid) is a bit of a coup. I do see that they themselves got 3 blocks totalling 1,173km2 but further away from the mine. Spending $90m on exploration...

 

[finicky]

I don't understand how that happened but I got filled in the first hour of trading. Put in a bid for another chunk @ 0.155 in case I get 'lucky'. I thought I'd have leisurely time to ponder and maybe get cold feet today over my initial bid since on Sunday night there were like 450,000 shares in the bid queue in front of me, also @ 0.18. Only 250,000 shares have sold today so far according to Commsec. Anyway I'm pleased to have a stake in S2R.
Trying not to mention the size of my sales and purchases now as nobody else does it and maybe it's taken the wrong way. For me it is interesting information if I know the size of bidding and selling when someone is doing it, i.e how serious are they about it. Like someone says, "I added on today's dip" - that's only interesting if you know that is a fair bit more than $500 worth.

CV of Mark Bennett, exec chair

 

[Sean K]

I don't understand how that happened but I got filled in the first hour of trading. Put in a bid for another chunk @ 0.155 in case I get 'lucky'. I thought I'd have leisurely time to ponder and maybe get cold feet today over my initial bid since on Sunday night there were like 450,000 shares in the bid queue in front of me, also @ 0.18. Only 250,000 shares have sold today so far according to Commsec. Anyway I'm pleased to have a stake in S2R.
Trying not to mention the size of my sales and purchases now as nobody else does it and maybe it's taken the wrong way. For me it is interesting information if I know the size of bidding and selling when someone is doing it, i.e how serious are they about it. Like someone says, "I added on today's dip" - that's only interesting if you know that is a fair bit more than $500 worth.

CV of Mark Bennett, exec chair

View attachment 133833

Impressive CV. Would seriously consider this just based on management.

I think most people don't say how much they've invested because it's $ and we have this strange tendency to not tell people how much we make, earn, have or have not. Not sure if that's just an Australian thing or universal. I do note a lot of rampers on HC saying they bought $xxxxx worth of something, but I've always assumed they were just Uber drivers having a play with themselves.

 

[Sean K]

Impressive CV. Would seriously consider this just based on management.

I think most people don't say how much they've invested because it's $ and we have this strange tendency to not tell people how much we make, earn, have or have not. Not sure if that's just an Australian thing or universal. I do note a lot of rampers on HC saying they bought $xxxxx worth of something, but I've always assumed they were just Uber drivers having a play with themselves.

Oh, @finicky I'm not saying you're an Uber driver on HC by the way, you're obviously not. Sorry if that was interpreted. I actually really appreciate you been so honest with your trading volumes. I've got no doubt about your trading, and it does put things in perspective, thanks.

 

[finicky]

C'mon mate you know somehow I'm whacking off waiting for Uber pick-ups, questiin is how? How .. ?

 

[Sean K]

Got a nice bouncy bouncy at 17 @finicky

 

[Dona Ferentes]

C'mon mate.... question is how? How .. ?

I suspect a second and deeper market crash in 2022. <= 2021 was a typo

Ha ha

 

[finicky]

Held an 8% gain today in the midst of a pretty lacklustre day for goldies.

 

[finicky]

Met the offer and tacked on some @ 0.175
Note to self: stop buying stuff unless you sell something else to fund it.
Still favouring the possibility of a lower share price and have left the bid sitting @ 0.155

Daily

 

[Sean K]

Met the bid and tacked on some @ 0.175
Note to self: stop buying stuff unless you sell something else to fund it.
Still favouring the possibility of a lower share price and have left the bid sitting @ 0.155

Daily

Well, this could go anywhere finicky. You're buying the management and the chance they have ground similar to Fosterville. As you know, Fosterville is pretty special and wasn't discovered for a very, very long time while laying under our noses. This might be a strap in and wait 10 years proposal and who cares what the sp does in the mean time.

 

[finicky]

@Sean K something secondary to like about the Fosterville tenement (Block 4) is that most of it is not under Murray Basin sedimentary cover. This should make it easier to sniff something out with geochem and cheaper to drill. Also S2R's 'wrap around' tenement has the fault going through it that is a 'control' of the Fosterville deposit.
As shown by the Finland jvs this company is not averse to exchanging some ownership of its tenements for exploration funding - KL is the so obvious natural partner, just speculation and hope. This company reminds me of Chalice (CHN) a bit.

 

[finicky]

The newly listed spin-off of Chalice Mines' (CHN) Bendigo North and other gold tenements under the name Falcon Metals (FAL) has taken as its founding non exec chairman, the storied and illustrious Mark Bennett (ex Sirius Resources M.D). Mark Bennett is 'our' (S2R's) exec Chairman. Some sort of cooperation seems a prospect here or otherwise it is a strange coincidence. Falcon has lots of money for a junior.

Not seen on this ST daily chart but the zone 20-25c has been a past resistance level and this past month or so has seen it hesitate in the zone and then pull back with low volume. Now we see a bar outside the downtrend line of the consolidation.

Daily

 

[finicky]

My fourth pick for the 2022 comp and again the confidence level is lower than for my other picks of KCN and KWR. It is mostly for the management as described in previous posts and the super prospective Block 4 Fosterville tenement which has I believe the same controlling rock types and fault structures as the Fosterville mine running the length of it.

The share price is already at a high level since the granting of Block 4 and I am not at all sure of how much drilling progress they will be able to make over 12 months to make this a good competition entry.

More when there is news

 

[Sean K]

@finicky interesting connection with FAL. Could be something in that down the track. Although, crystal ball gazing, Kirkland is likely to snap up either of these two if they find something remotely like Fosterville within trucking of their mill. Perhaps.

 

[Sean K]

And, I didn't realise Creasy owned 19% of them, I missed that last time I looked at their last presentation. That adds even more thickness to the plot.

 

[Sean K]

I've only glanced at their other projects but am really only following this for the GFP. Seems like they're a while away from drilling around Fosterville @finicky Tell them to hurry up will you. Ta.

Looks like that support is holding up well.