Australian miner S2 Resources has signed an earn-in agreement with Valkea Resources (formerly Outback Goldfields) to acquire a 51% interest in the Glenfine joint venture (JV) in central Victoria.

To earn the 51% interest, S2 must fund a total expenditure of A$200,000 within four years, with the option to withdraw under certain conditions.

Upon completion, S2 will assume Valkea's rights and obligations in the JV, with the remainder held by Predictive Discovery and Cape Clear Minerals.

Additionally, S2 will grant Valkea a 2% net smelter return royalty, which can be bought back for C$2m ($1.4m).

The deal follows S2’s recent earn-in agreements for three other Valkea projects in Victoria, expanding its exposure to highly prospective gold acreage in the region.

This marks the final step in a broader multifaceted transaction linked to the sale of S2’s Finnish assets to Valkea, which was announced last year.

The Glenfine JV spans 92km² and includes two granted exploration licences.

The area covers approximately 25 strike kilometres of the Avoca Fault and is within the historic Pitfield Plains goldfields.

The project is situated south of S2's recently acquired Silverspoon, Yeungroon and Ballarat West exploration projects.

As part of the agreement, S2 gains access to an extensive historical database and drill core. The company plans to relog the core and use 3D modelling to identify future drilling targets.

Historical exploration has focused on hard rock mineralisation within Cambrian turbidite meta-sediments, with the Glenfine dome featuring similar geology to the Stawell Gold Mine.

Notable drill results at Glenfine South have revealed multiple mineralised structures with significant gold grades.

The agreement is contingent on approvals from the TSX Venture Exchange and the Victorian minister under the Mineral Resources (Sustainable Development) Act 1990.