S2 Resources Ltd (S2R) has cleared a significant hurdle at its Jillewarra joint venture in Western Australia, with the Department of Mines, Petroleum and Exploration granting two key exploration licences. The approval of E51/1955 and E51/1956 secures the company's hold over 35 kilometres of strike length within the Karbah shear zone, a structure geologically linked to major regional gold deposits.

This development follows the company’s recent progression of the project, building on a June 15 update that had flagged the pending grants. With the ground now secured, S2 is moving to initiate its first systematic exploration campaign. Drilling environmental approvals are currently being processed, with management aiming to begin a 30,000-metre aircore drilling program in July. This initial "sighter" phase is designed to characterize the geology, depth of cover, and geochemical footprint of the shear zone across a 60-kilometre strike corridor.

"The Company anticipates that the initial reconnaissance aircore drilling that it intends to undertake in the period between granting of the ELA's and the earn-in deadline will be sufficient to meet the earn-in requirement."

— Mark Bennett, Executive Chairman

The company is working toward an earn-in agreement with Black Raven Mining, which requires a total expenditure of A$5 million by October 2, 2026, to secure an initial 51% interest. Having spent approximately A$3.8 million as of the end of May, the upcoming drilling activity is intended to satisfy the remaining financial obligation to firm up the interest. Beyond the Jillewarra ground, the explorer maintains a diverse project pipeline that includes the Loch Lilly copper-gold project in New South Wales.

Following the announcement, shares in the company closed at $0.056 on June 25, representing a 1.75% decline on the day. Investors will be watching for the results of a recently completed detailed aeromagnetic survey, expected in July, which will be integrated with the upcoming drill data to refine future geological maps and target generation for the broader undercover district.

Read the full announcement: Jillewarra JV - Tenements granted, drilling imminent