PIONEER RESOURCES LIMITED - ASX: PIO

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Description

Pioneer is a specialist exploration company with a strategically located tenement portfolio, largely located within 200km of Kalgoorlie WA. The Company believes that medium to long-term growth will be delivered via genuine discovery, and following recent successes at its emerging and expanding Mt Jewell Gold Project, the Company's priority has shifted towards this emerging gold project.

Mt Jewell Gold Project

• Located 55km N of Kalgoorlie, WA.
• Tregurtha and Hughes gold deposits identified.
• Substantial additional acreage acquired.
• New gold targets identified along proven gold trends.
• 9,954m of Mineral Resource definition drilling, and 6,022m of target generation RAB drilling completed during 2009-2010 year.
• Metallurgical appraisal of 5 potential ore samples, with results showing high recoveries using conventional CIP gold extraction technology.

Following tenement acquisitions during the year, the Mt Jewell Gold Project now comprises approximately 750km² of tenements covering a number of geological and structural environments considered favourable for gold mineralisation.

The project benefits from established infrastructure due to its close proximity to the mining centre of Kalgoorlie WA, with access via sealed road, and with gas, rail and electricity nearby. A number of major gold mines operate in the area, including Paddington, Kanowna Belle and the Kalgoorlie Superpit.

RC drilling, which commenced in September 2009, resulted in the discovery of the Tregurtha and Hughes gold deposits. Here, gold mineralisation is located entirely within zones of sheared and altered Granodiorite, a geological setting which is analogous that of the Federal and Golden Cities Gold Mines, hosted in the nearby Scotia Granodiorite.

Acra Joint Venture Project (Xstrata Nickel Australia (XNA) earning 80%)

All exploration costs are fully funded by Xstrata Nickel Australasia. The Acra JV Project is located near Kurnalpi, approximately 65km NE of Kalgoorlie, WA. The Joint Venture completed a surface geophysical EM survey that tested the ‘Western Ultramafic Unit’ at the Jubilee West Prospect. The survey was undertaken to provide improved target resolution for future drilling, and modelling is in progress. The joint venture recently reported a drilling intersection of 9.55m at 0.98% Ni and 362ppm Cu from the Jubilee West Prospect. An additional surface EM survey is planned for completion during the December 2010 quarter. This will test for conductive bodies which may include massive nickel sulphides NW along strike from the Jubilee West Prospect.

The project provided a dominant tenement position along the EMU fault covering approximately 140km length of prospective ultramafic units that host high tenor massive and disseminated nickel sulphide mineralisation. Existing nickel sulphide prospects occur at ACRA, and Jubilee.

Last year XNA identified a mineralised intact basal contact at the new Jubilee West Prospect that returned

* JBDD0014 0.1m at 2.58% Ni from 553.72m

This intersection is significant because it is the first time an intact nickel sulphide intersection with the project area has been made. Recent drilling at Jubilee West intersected 9.55m at 0.98% Ni, including 0.85m at 3.05% Ni.

Mt Thirsty South Project

The Mt Thirsty South Project is located approximately 20km NNW of the township of Norseman and 150km S of Kalgoorlie. The company is targeting cobalt, nickel and manganese mineralisation within lateritised ultramafic rocks. The project is 100% owned by Pioneer. The project covers the immediate southern extension of the Mt Thirsty Joint Venture Project ("MTJV") (Barra Resources Limited (ASX: BAR) and Fission Energy Limited (ASX: FIS)) where a resource of 21 million tone of 0.62% Ni, 0.14% Co and 1.01% Mn is reported (FIS announcement 21 April 2008).

RAB Drilling by Pioneer has identified anomalous cobalt nickel mineralisation within a similar geological horison including:

* 6m at 1,532ppm Co, 0.35% Ni, 1.04% Mn
* 3m at 4,634ppm Co, 0.26% Ni, 5.80% Mn

On receipt of environmental approvals, traverses of shallow drill holes will determine the prospectivity of ultramafic rocks extending on to Pioneer’s tenements. Areas of favourable geology will be tested with an EM survey to locate conductors which may include massive nickel sulphides.

Golden Ridge (Pioneer 56%, Australian Mines Limited 44%.)

Each Company contributes to exploration expenditure on a pro-rata basis. The Golden Ridge JV Project is located 30km SE of Kalgoorlie and is prospective for nickel sulphide deposits.

The joint venture completed a series of geophysical EM surveys which tested for the presence of conductive bodies which may include lenses of massive nickel sulphides. Six prospective areas were surveyed. These included targets near the Blair Mine, at Anomalies 11 and 20SW (where disseminated nickeliferous sulphides occur) and new targets along the Central Ultramafic Unit. Preliminary data imagery show’s that a number of conductors have been detected, and comprehensive modelling of data is currently being undertaken by Southern Geoscience Consultants.

Selective drilling of conductors with the highest potential for massive nickel sulphides will follow during 2011.

Other JV & Royalty

Pioneer and Ramelius Resources Limited have entered into a series of agreements which, collectively, has resulted in a large project, managed by Ramelius, that has areas prospective for nickel and gold. The project is located approximately 60km SW of Kalgoorlie.

The Project is located at the northern end of the Widgiemooltha Greenstone Belt with ultramafic units interpreted to correlate with the host units of the Mt Edwards, Widgiemooltha, Miitel and Redross Nickel Sulphide Mines. The area is also prospective for gold and tantalite mineralisation is recorded. Ramelius is very active in the Wattle Dam District where it has a gold mining operation and an aggressive exploration program for both nickel and gold.

In an announcement by Ramelius in early June 2007, a drill hole was reported as having intercepted 32 metres at 2.0/t Gold from 12 metres depth at the centre of a 700 metre long anomalous zone within the West Larkinville JV Project.

Pioneer Joint Venture Project

Pioneer recently announced that it had sold an 80% interest in the Pioneer Project to Panoramic Resources Limited.

The project is located approximately 30 km NNW of Norseman and 140km S of Kalgoorlie and contains ultramafic stratigraphy that correlates with the mine sequences at Miitel, Redross and Mt Edwards Nickel Sulphide mines. Panoramic are actively exploring the surrounding ground for nickel sulphide mineralisation.

Panoramic reports that it conducted a ‘blanket’ moving loop EM survey earlier this year covering known occurrences of ultramafic rocks. The survey detected a number of conductive bodies. Four conductors with the highest potential for massive nickel sulphide mineralisation have been selected for drilling, scheduled for the March 2011 quarter.

Pioneer retains a 20% free carried to decision to mine on the project.

Mine For

cobalt, copper, manganese, nickel

Location of operation(s)

Western Australia

Address

21 Ord St
WEST PERTH, WA, AUSTRALIA

Phone

(61 8) 9322 6974

Email

Website

http://www.pioneerresources.com.au

Last Updated

4/5/2011