5 November 2013
ASX/Media Announcement
Exploration Update:
Fairwater Project - Albany-Fraser Orogen
Ground Fixed Loop EM Survey Highlights Priority Nickel-Copper Target
Additional Nickel Targets Identified
Pioneer Resources Limited ("Pioneer" or the "Company" (ASX: PIO)) is pleased to provide an update of its recent nickel exploration activities at the Fairwater Project.
Pioneer's Fairwater nickel targets are located between 100 and 130km south west of Sirius Resources' (ASX:SIR) world class Nova and Bollinger Nickel-Copper Deposits. Pioneer holds a 75% interest at Fairwater, which covers approximately 650 km2 of the Albany-Fraser Orogen.
Exploration targets have been developed using geophysical remote sensing, existing geochemistry and geo-chronological information, with priority targets characterised by:
• Magnetic highs which may represent mafic or ultramafic rock units;
• Coincidental anomalous nickel (supported by chrome and copper) geochemistry as both confirmatory indicators of mafic or ultramafic rocks and potential for nickel mineralisation; and
• Proterozoic aged stratigraphy.
The FWN001 Prospect is the first of 5 geophysical/geochemistry prospects (FW001-FWN005) that will be progressively explored by Pioneer.
FWN001: Ground EM Generates a Priority Nickel Drill Target
Ground electromagnetic (FLEM) surveys were completed in October 2013 at the FWN001 Prospect to follow- up previously reported airborne VTEM anomalies (T1 - T3).
Pioneer's geophysicist describes the T3 conductive target as being reasonably well-constrained and provides a recommendation for future drill testing.
The T3 data was effectively modelled as a sub-vertical conductor with a shallow northerly plunge. The modelled conductance is relatively high at approximately 2500 Siemens, which places the conductive source into the category of potential massive sulphides.
The FLEM data from the T1 and T2 targets confirmed the original near-surface airborne VTEM anomalies, but there was no clear evidence for conductive bodies at depth within either survey area.
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Project Background - Strong Nickel Sulphide and Gold Prospectvity
Fraser Range nickel sulphide deposits are classed as 'mafic intrusive hosted', a class of deposit that includes Voisey's Bay in Canada and Radio Hill in Western Australia, amongst others. This style of deposit occurs within areas where tectonic events have resulted in zones of crustal thinning, often adjacent to major crustal sutures.
The Fairwater project covers Proterozoic-aged (1.8-1.65 Ba) Biranup Zone rocks of the Albany-Fraser Orogen where it is tectonically emplaced against the Archaean aged (>2.5 Ba) Yilgarn Craton.
Elsewhere within the Project, targeting using available geochemistry data has identified a further four nickel prospects comprising Proterozoic-aged structures with coincident nickel geochemistry and magnetic spikes; and six large areas with anomalous gold geochemistry. These will be progressively evaluated.
Figure 1: The Fairwater Project area and simplified pre-Mesozoic geology (Modified from Geological Survey of Western Australia (2011))
FWN005
FWN004
FWN002-3
FWN001 (T1-3)
Figure 2: Fairwater FWN001 Prospect showing T1-T3 Prospects.
Background shows aeromagnetic Image, with insets being channel 35 FLEM conductance imagery.
Dots represent Pioneer nickel soil geochemistry results.
T1
T2
T3
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OUTLOOK
The Company is very encouraged by the identification of a strongly conductive bedrock source during the T3
FLEM survey within the FWN001 Prospect. The presence of conductive stratigraphy (which might include nickel sulphides) reinforces the potential for a nickel discovery within the Project.
Progressive exploration activities will continue at the Fairwater Project throughout December-January 2013-
14. Specifically, a soil geochemistry sampling program comprising 2,500 samples is scheduled for this period. The sequence of ongoing exploration activities into 2014 will include:
• Soil sampling of the FWN002-FWN004 nickel targets shown in Figure 1 above.
• Surface EM surveys of subsequent nickel-copper anomalies; and
• Stratigraphic drilling of ground EM conductors, including T3, and others as warranted. ENDS
Managing Director
Pioneer Resources Limited
For further information please contact:
David Crook James Moses
Managing Director Media and Investor Relations
Pioneer Resources Limited Mandate Corporate
T: +61 8 9322 6974 M: +61 420 991 574
E: [email protected]E: [email protected]
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Figure 3: Target T3 FLEM model: Primary field vectors shown in EW section are parallel to conductor. Proposed drill hole.
Figures 4a, 4b: Line 6390900mN Z Component Linear Scale
The information in this report that relates to Exploration Results is based on information supplied to and compiled by Mr David Crook. Mr Crook is a full time employee of Pioneer Resources Limited and a member of The Australasian Institute of Mining and Metallurgy (member 105893). Mr Crook has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Information and interpretations in respect of geophysical data was provided by Mr Ben Jones, and information in respect of geology was supplied by Mr Don Huntly. Mr Crook, Mr Huntly and Mr Jones consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.
Caution Regarding Forward Looking Information
This document may contain forward looking statements concerning the projects owned by the Company. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions.
Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward- looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among
other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes.
Forward looking statements in this document are based on the Company's beliefs, opinions and estimates of the Company
as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.
There can be no assurance that the Company's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to confirm the presence of additional mineral
deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company's mineral properties. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.
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