Microsoft Word - pioSeptember2015_quarterlyFINAL.docx
30 October 2015
Pioneer Resources Limited (ASX: PIO)
QUARTERLY ACTIVITIES REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2015
FAIRWATER Nickel Project (Fraser Range) - Diamond Drilling In Progress
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Up to 1000m of Diamond drill core to be drilled at the FWNi003 nickel prospect;
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To date, 2 holes have been completed, encountering ultramafic rocks;
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Drilling is expected to be completed by mid-November 2015.
ACRA Gold Project - High Grade Lode Gold at Kalpini South. Four Other Drill Targets
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Very high gold grades in drill core confirms the potential for lode gold at Kalpini South:
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KSDD001 0.2m at 116 g/t Au from 131m; and
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KSDD002 1.2m at 20.8 g/t Au from 145.71m, which included 0.2m at 84 g/t Au.
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Drilling is proposed for later this year at the Kalpini South Prospect, once Fairwater drilling is completed. The drilling plan includes:
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Up to 10,000m of RAB or aircore drilling to progressively test a suite of targets within a 3km radius of the Kalpini South Prospect;
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Up to 1,500m of RC drilling will target supergene gold at the Kalpini South and Kalpini Knight Prospects;
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Additional Diamond core drilling will test the Kalpini South high grade gold lode 'down plunge' of the known gold mineralisation.
BLAIR Nickel Project -Blair Dome Model Emerges
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The proposed Blair Dome model continues to be tested for robustness using existing geological information. Consistent with the new model, re-logged core from selected drill holes confirms that the N10 surface is a primary ultramafic footwall contact, which is a very positive factor when prioritising drill targets;
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Existing information, including soil geochemistry, RAB and aircore drilling and limited amounts of deeper drilling, support the revised model. The Company has engaged Newexco to review existing geophysical data.
CORPORATE - Cash Reserves means Field Activities will Continue
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At 30 September 2015 the Company had cash reserves of $1.43 million and no debt;
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Following the end of the quarter the Company issued 30,916,666 fully paid ordinary shares in the Company raising $463,750 before costs, to Clients of Bell Potter and other professional and sophisticated investors. In addition, and subject to shareholder approval, which will be sought at a general meeting later this year, Directors in the Company have subscribed for 4,083,333 shares which will raise a further $61,250. This brings the total raised to $525,000 before costs.
Figure 1: Pioneer Resources Limited Tenement Location Plan. Further tenement information is listed in Appendix 1.
The Company's exploration strategy is to focus on three key exploration assets, being the Fairwater Nickel Project in the Albany Fraser Orogen, the Blair Nickel Mine near Kambalda and the Acra Gold Project. All are within Western Australia. These projects are within close proximity to roads, towns and other infrastructure, including the mining hubs of Kalgoorlie, Kambalda and Norseman.
EXPLORATION REVIEW: SEPTEMBER 2015.
FAIRWATER NICKEL PROJECT
Pioneer 75%. Nickel and gold.
The Fairwater Project's nickel targets are located in interpreted Proterozoic-aged rocks between 100 and 130km south west of Sirius Resources' (ASX: SIR) Nova and Bollinger nickel discoveries, in the Albany-Fraser Orogen in south east Western Australia (Figure 1).
Diamond DRILLING UNDERWAY
A program of up to 5 Diamond core drill holes for a total of approximately 1,000m of drilling is under way and at the time of writing, two holes have been completed.
The Company is encouraged by the dominant ultramafic rock-type intersected in these holes. PXRF analyses, which are used to assist the geologist to identify strongly altered rocks, indicate that high magnesium serpentinites (after peridotite, a type of ultramafic rock) are present. An interpretation is that drill holes have intersected the flank of an ultramafic lopolith, which is thickening to the west, towards the centre of the proposed ultramafic intrusion. Hole 3 will be aimed towards the centre of the ultramafic structure.
Aircore holes FWAC051 and FWAC069 were two of 10 holes drilled earlier this year that returned anomalous geochemistry. The features of these anomalies include:
FWAC051:
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Strongly anomalous nickel geochemistry in near-fresh ultramafic rocks including 0.51% Ni at 33 to 34m; and 0.61% Ni at 44 to 45m (45m is the end of the drill hole);
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Petrographic identification of nickeliferous supergene sulphide mineral(s) millerite-violarite from the 44 to 45m interval;
FWAC069:
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Strongly anomalous nickel geochemistry within near-fresh ultramafic rock including 8m at 0.33% Ni from 30m depth with a maximum of 0.39% Ni;
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Anomalous associated metals including up to 336ppm Cu; and favourable Ni/Cr of 2.3.
The objectives of the current drilling program include:
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to intersect nickel sulphide mineralisation;
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to confirm that the ultramafic rocks are compositionally correct to host nickel sulphide mineralisation, even if sulphides are not intersected in this drilling (i.e. positive nickel sulphide vector information);
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to provide information about the nature of the emplacement of the ultramafic unit, which can have a bearing on the future exploration strategy; and
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to provide a platform for down hole EM surveys where necessary.
TIMETABLE
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Following a delay due to issues with drilling water supply, drilling should be complete by mid- November;
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Core orientation, marking up and logging will be completed on site, with core transported to Kalgoorlie for cutting and sampling; and
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Final laboratory assays are still expected towards the end of November 2015.
Figure 2: Fairwater Nickel Project: FWNi003 Prospect summary plan showing completed aircore drill holes (black dots) with proposed locations of the Diamond core holes for this program (subject to change) shown as orange dots. The underlying image is of aeromagnetic data which indicates the location of more-magnetic ultramafic rocks as warmer colours.
(Refer Note 1 on page 12 for further details)