S2 will spend A$200,000 ($127,068) over four years to earn a 51% interest.

Wedoany.com Report-Feb 25, Australian company S2 Resources has entered an earn-in agreement with Valkea Resources, previously known as Outback Goldfields, to secure a 51% stake in the Glenfine joint venture located in central Victoria. Under the terms, S2 will invest A$200,000 over four years to earn this interest, with the flexibility to exit if specific conditions arise. Once completed, S2 will take on Valkea’s responsibilities and rights in the joint venture, alongside partners Predictive Discovery and Cape Clear Minerals, who hold the remaining shares. S2 will also provide Valkea with a 2% net smelter return royalty, which Valkea can repurchase for C$2 million, equivalent to $1.4 million.

This arrangement builds on S2’s recent agreements for three other Valkea projects in Victoria, broadening its foothold in a region known for promising gold prospects. It also concludes a larger transaction tied to S2’s sale of Finnish assets to Valkea, announced in the previous year. The Glenfine joint venture covers 92 km² and includes two approved exploration licenses. The site stretches across 25 strike kilometers of the Avoca Fault, within the historic Pitfield Plains goldfields, and lies south of S2’s newly acquired Silverspoon, Yeungroon, and Ballarat West projects.

Through this deal, S2 gains access to a detailed historical database and drill core. The company intends to reassess the core and apply 3D modeling to pinpoint targets for future drilling. Past exploration in the area has targeted hard rock mineralization in Cambrian turbidite meta-sediments, with the Glenfine dome sharing geological traits with the Stawell Gold Mine. Drilling at Glenfine South has uncovered several mineralized structures yielding notable gold grades. The agreement awaits approval from the TSX Venture Exchange and the Victorian minister, as required under the Mineral Resources (Sustainable Development) Act 1990.

The Glenfine project strengthens S2’s position in Victoria’s gold exploration landscape, leveraging historical data and modern techniques to evaluate its potential. This move aligns with the company’s strategy to expand its portfolio in a region recognized for its mineral wealth, while maintaining a structured approach to investment and development.