S2 to Spend A$6M to Earn 75% of 955km² Loch Lilly Multi-Commodity Project
S2 Resources has secured an earn-in agreement for up to 75% of the Loch Lilly-Kars project, a vast and largely unexplored multi-commodity exploration area in New South Wales with geological parallels to world-class mineral belts.
- Earn-in agreement for up to 75% interest in Loch Lilly-Kars project
- Project covers 955 square kilometres southeast of Broken Hill
- Geological similarities to Mt Read and Stavely volcanic belts
- Historical drilling limited, indicating significant exploration upside
- Planned systematic geophysical surveys and drill testing
A New Frontier in NSW Exploration
S2 Resources Ltd has announced a strategic earn-in agreement to acquire up to a 75% interest in the Loch Lilly-Kars project, a large-scale greenfields exploration venture located approximately 70 kilometres southeast of Broken Hill in far-western New South Wales. This project spans nearly 1,000 square kilometres and remains one of the most underexplored belts in the region, offering a compelling opportunity for discovery.
Geological Promise Rooted in World-Class Analogues
The Loch Lilly-Kars Belt (LLKB) is geologically significant due to its affinity with the Mt Read Volcanic Belt in Tasmania and the Stavely Volcanic Belt in Victoria. These belts are renowned for hosting world-class mineral deposits, including the Mt Lyell copper-gold mine and several major volcanogenic massive sulphide (VMS) deposits. The LLKB’s Neoproterozoic to mid-Palaeozoic volcanic and sedimentary rocks, concealed beneath substantial cover sequences, present a fertile ground for polymetallic VMS, porphyry copper-gold, orogenic gold, and magmatic nickel-copper mineralisation.
Historical Data Highlights Untapped Potential
Despite its size and potential, the Loch Lilly-Kars project has seen minimal drilling activity, with only 27 holes historically completed across the entire area. Limited previous drilling has intersected promising alteration zones and low-level copper anomalism, but no comprehensive exploration campaign has been undertaken. Recent radiometric dating and geochemical studies have identified porphyry intrusions with strong fertility signatures, suggesting a previously unrecognised potential for copper-gold porphyry deposits.
Structured Earn-In Agreement and Exploration Plans
The agreement with San Antonio Exploration Pty Ltd, associated with respected geoscientist Professor Tony Crawford, involves staged expenditure commitments totaling A$6 million over five years. S2 will initially spend A$3 million to earn a 51% interest, with an option to increase to 75% by spending an additional A$3 million. S2 will manage the joint venture, leveraging SAE’s technical expertise. The company plans to apply a suite of geophysical techniques tailored to the diverse target styles before commencing diamond drilling to test priority targets.
Secured Tenure and Collaborative Backing
The project tenure includes two granted exploration licences and two pending applications, all in good standing. The area is accessible via major highways and lies predominantly on pastoral leases with native title extinguished, simplifying access arrangements. The project benefits from recent government-supported initiatives and academic research, including data from Geoscience Australia and the Mineral Exploration Cooperative Research Centre, enhancing the understanding of this underexplored terrane.
Bottom Line?
S2 Resources’ methodical approach to unlocking the Loch Lilly-Kars Belt could redefine exploration prospects in NSW’s far west.
Questions in the middle?
- How will S2 validate and integrate the extensive historical data before drilling?
- What geophysical methods will prove most effective in this concealed terrain?
- Could early drilling results trigger partnerships or market re-rating?
