Why the S2 Resources (ASX:S2R) share price was on the move today

The S2 Resources Ltd (ASX: S2R) share price was up by almost 6% today before closing flat. Here's what was driving the early gains.

| 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

The S2 Resources Ltd (ASX: S2R) share price was up by nearly 6% in early morning trading today, before giving back its gains throughout the day to finish flat.

The share price movement comes following this morning's announcement of promising drill results at its Finish gold prospect.

Year-to-date, the S2 Resources share price is up 38%. By comparison the All Ordinaries Index (ASX: XAO) is up 1.7% so far in 2020.

What does S2 Resources do?

S2 Resources is a mineral resource exploration company. It seeks to identify early stage assets offering high growth potential. The company operates in three segments: Finland exploration activities, US exploration activities, and Australia exploration activities. Its projects include Polar Bear, Eundynie, and Norcott.

S2 Resources explores for copper, zinc, gold, nickel, and platinum metals. Share first began trading on the ASX in October 2015.

What did S2 Resources announce to send its share price higher today?

In this morning's ASX announcement, S2 reported on the results it has received from 3 of the 4 diamond holes drilled at its 100% owned Aarnivalkea prospect in Finland.

The diamond holes, drilled in October, were testing for extensions to the shallow gold mineralisation previously uncovered by S2. The drilling was intended to test "down-dip and down-plunge extensions" to the known mineralisation.

The best results came from hole FAVD0062, which intersected several mineralised zones, with the strongest located 110 metres down-dip from previous drilling. The drill results returned 6.85 metres at 11.8g/t gold from 223.0 metres downhole, including 4.0 metres at 18.1g/t from 223.0 metres downhole.

Commenting on the drill results, S2 Resources' CEO Matthew Keane said:

This high grade result reinforces S2's view of the prospectivity of our tenure in the Central Lapland Greenstone Belt. Aarnivalkea is a virgin gold discovery, completely masked by shallow glacial cover and located only 24 kilometres from Kittilä, Europe's largest producing gold mine. Lapland remains an integral part of S2's portfolio, and in addition to following up on these gold results, we also plan to commence base metal exploration in 2021 on our 100% owned Ruopas Project.

Should you invest $1,000 in Challenger Limited right now?

Before you buy Challenger Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Challenger Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Miner looking at a tablet.
Resources Shares

Up 73% since April, why Mineral Resources shares could keep charging higher

A leading expert says that Mineral Resources shares remain ‘heavily undervalued’. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Resources Shares

Guess which ASX 200 mining stock is sinking 7% following its quarterly update

Let's see how this miner performed during the third quarter.

Read more »

Miner looking at a tablet.
Resources Shares

What's the latest broker ratings on BHP shares?

There's an air of caution floating about BHP shares even with bullish ratings.

Read more »

A young African mine worker is standing with a smile in front of a large haul dump truck wearing his personal protective wear.
Resources Shares

BHP shares last traded at $50 in 2023. When will they get back there?

Let’s dig into the potential for BHP shares to rise.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 21% on 'exceptional' results

Investors are sending the ASX All Ords stock flying higher on Wednesday. But why?

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Resources Shares

Guess which prominent Super fund just offloaded its remaining Mineral Resources shares?

This super fund has had enough.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Broker names 10 ASX mining stocks set to outperform following Macquarie Conference

Twenty-two ASX mining companies presented at the annual Macquarie Conference last week.

Read more »

Miner holding cash which represents dividends.
Dividend Investing

Invested $8,000 in Fortescue shares 5 years ago? Guess how much passive income you've banked!

Fortescue is popular among passive income investors for paying two fully franked dividends per year, even during COVID.

Read more »