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.

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.

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.

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