The S2 Resources share price soared 23% yesterday as gold drilling starts

The S2 Resources share price soared on Wednesday following an announcement that the company had commenced drilling on the large Paana tenement in Finland.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Wednesday, the S2 Resources Ltd (ASX: S2R) share price rose by 23.81% to $0.13 after the company announced that it had commenced drilling at its Finland site. 

What was in the announcement?

The company announced that initial diamond drilling had commenced at its 100% owned Aarnivalkea East gold target on the large Paana tenement in Finland. The mine is located 20km northwest of a 9 million ounce gold mine that is owned by another company.

The first drill test had revealed gold grades of up to 10.7 grams per tonne, accompanied by arsenic and bimuth, which can help in identifying a path to gold.

Drilling had been scheduled to start in March but had been delayed due to the effects of the coronavirus pandemic. The drilling is being undertaken by the company's European-based workers, with virtual oversight by its Australian personnel until they are able to resume international travel.

The initial drilling program will consist of approximately ten diamond core holes, these are to be drilled on 3–4 traverses across the previously identified trend. The initial drilling will take about 3–4 weeks to be completed. According to the announcement, the site can be accessed year round for follow up drilling. 

About the S2 Resources share price 

S2 resources is a greenfields gold and base metals explorer. The company has exploration activities in Australia and Finland. According to the company, its exploration is based in mine-friendly areas. The S2 team primarily consists of former directors from Sirius Resources, which had success in nickel exploration.

The company recently discovered two gold prospects in Finland, one of which is being drilled currently.

At the end of the March quarter, S2 resources had $7.3 million cash plus 31% ownership of Todd River Resources Ltd (ASX: TRT). The company continued drilling for gold in Finland while drilling for nickel at two sites in Western Australia.

The S2 Resources share price is up 97% from its 52 week low of $0.066, and while it is flat on the start of 2020 it is up 18% since this time last year.

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Three friends leaping in the air in joy with a dog on the ground.
Share Gainers

Can May's top 3 performing ASX 50 stocks repeat in June?

These three blue chip stocks led the pack in the month of May. Do brokers think they can back it…

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Broker Notes

Bell Potter names the best ASX 200 stocks to buy in June

The broker is feeling bullish on these names this month. Let's find out why.

Read more »

Woman relaxing and using her Apple device
Share Market News

Is the ASX 200 stock owner of 'Australia's most trusted brand' in your portfolio?

New research shows which companies Aussies trust the most 

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Broker Notes

Bell Potter says this ASX 200 share can rise 25%

Let's see what the broker is saying about this stock.

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Wednesday

Another good session is expected for Aussie investors today.

Read more »

Happy young woman saving money in a piggy bank.
Share Market News

Buy these ASX dividend shares to beat term deposits

These shares could be superior to term deposits according to analysts.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX was back to the races this Tuesday.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Opinions

Could Soul Patts shares hit $50 in 2025?

This company jumped more than 16% yesterday.

Read more »