By Courtney Pearson
October 7, 2015
SPIN-off S2 Resources, which hopes to list on the ASX by mid-October, is confident that it will continue to build on the achievements of Sirius Resources.
Members of the Sirius Resources management team have moved to S2, with a pay cut, in attempts to emulate and surpass past successes.
“We want to do Sirius all over again, and we believe we can,” S2 Resources managing director and chief executive Mark Bennett told the WA Mining Club.
“We are in a much better position as Sirius mark one than Sirius mark two.”
S2 will begin a $1 million drilling program at the Baloo prospect which contained a “significant zone of gold mineralisation”.
“We’re in a highly unusual position starting at $22 million and potentially we will find ourselves with cash flow from [the] Baloo [prospect] one way or another,” Mr Bennett said.
The $22 million was expected to keep the company afloat for two to three years, with the potential for Baloo to provide short term cash flow. S2 was not looking to raise any money at the time of listing.
Baloo is part of the Polar Bear project, which spans an area of 151 square kilometres between Higginsville and Norseman.
The mineralisation at Baloo was up to 100m wide, 40m thick and was defined across a 700m strike length. Key intercepts included 7.6m at 8.35 grams per tonne of gold from 125.2m and 9.8m at 4.97g/t from 111.5m.
“We don’t just want to mine a little gold deposit near Kalgoorlie, we want to find something significant again: a company-maker,” Mr Bennett said.
S2 also has a 67 per cent stake in Swedish company Sakumpu, which has exploration reservations in Lapland, Finland, and in Sweden.
The company had received a number of incoming offers from other parties, both large and small, to partner with S2 which “unlocks a whole range of potential opportunities”, Mr Bennett said.