S2 RESOURCES LTD This program, concentrated in a six kilometre long corridor containing approximately 15 strike kilometres of folded and structurally repeated ultramafics, has confirmed the presence ofsignificant accumulations of prospective ultramafic stratigraphy - namely high magnesium cumulate channel facies ultramafics- with frequent occurrences of trace to disseminated sulphide mineralisation as summarised below. Trace sulphide is defined by sulphide minerals comprising up to 2% of the rock, and disseminated sulphide is defined by sulphide minerals comprising 2-10% of the rock. The sulphide minerals are logged as a variable mix of pyrrhotite (iron sulphide) and pentlandite (nickel sulphide).
Five holes (50 percent of holes drilled) intersected intervals of trace to disseminated sulphide mineralisation within and at the base of thick channelised ultramafic sequences
Two holes appear to have intersected the target horizon, which is the basal contact of the ultramafic, at the depths predicted by surface EM without intersecting conductive rocks that would explain the EM anomalies, suggesting that these holes may have narrowly missed the actual position of the conductors and will require down hole electromagnetic (DHEM) surveys to verify and resolve the position of these conductors to guide follow up drilling
Two holes intersected conductive black sulphidic shales at the downhole depth predicted by EM, so these conductors have been definitively tested but with a negative outcome
Although no new zones of massive sulphide were intersected in this program, the abundance of thick, high magnesium, channelised ultramafics with the frequent occurrence of trace to disseminated sulphide mineralisation is considered encouraging, attesting to the fertility of these rocks and the potential for the presence of massive nickel sulphide accumulations. The intervals of trace to disseminated sulphides described in this release are based on visual logging only and are described as a fine grained mix of pyrrhotite (iron sulphide) and pentlandite (nickel sulphide). The actual grade and width of these intervals is unknown and cannot be estimated until laboratory analyses have been completed. It is important to note that visual estimates of sulphide mineralisation are qualitative not quantitative, should not be considered a proxy or substitute for laboratory analysis, and should not be relied on to draw conclusions relating to potential economic value or in making investment decisions. It is anticipated that a fullset of definitive laboratory analyses will be available by late March.
Hole SPBD0371 targeting conductor PBC22-2a, a poorly constrained conductor located on the southern extension of the Halls Knoll ultramafic trend, passed through a thick sequence of basalt and intersected the target horizon (in this case the overturned basal contact of the high magnesium channel facies ultramafic) at a depth of 436 metres. This contact is interpreted to represent the structurally inverted basal contact of the same ultramafic package that hosts the Halls Knoll mineralisation to the north and conductor PBC22-1 - the potential near-miss in drill hole SPBD0370. Like hole SPBD0370, the basal contact was intersected within 10 metres of the modelled plate position but with no obvious source for the conductor.
Several sedimentary units were intersected within the basalt hangingwall sequence but they were neither sulphidic nor carbonaceous, so unlikely to be conductive. Like hole SPBD0370, the proximity of the basal contact with the modelled depth of the conductor, and the lack of any conductive rocks capable of explaining the conductor, suggest that the source of the EM anomaly may have been missed in this drill hole and may be located nearby. As with hole SPBD0370, a DHEM survey will be required to provide better spatial constraint on any nearby conductor, and to guide a follow up drill hole. The prospectivity of the area containing the PBC22-2a conductor is further enhanced by the presence of disseminated sulphides intersected up dip within the ultramafic sequence in hole SPBD0372, collared approximately 130 metres north and 145 metres east of SPBD0371. This hole intersected a 14 metre zone of trace to disseminated sulphides at the interpreted base of a high magnesium channelised ultramafic, approximately 120 metres down-dip from a previous intercept of 10.2 metres @ 0.44% Ni, 0.1% Cu, 0.25 g/t Pd and 0.1 g/t Pt from 60.8 metres in SPBD0008
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