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Mt Thirsty South Project

Introduction

Mt Thirsty Project location

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Mt Thirsty Project aerogmagnetic imagery and cobalt-in-soil geochemistry

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Mt Thirsty South cobalt-nickel-manganese project is located approximately 20km NNW of Norseman, Western Australia. Pioneer holds a 100% interest in the project.

The Mt Thirsty South Project is comprised of a single exploration licence with an area of 114km².

Pioneer's project is immediately south of the Mt Thirsty Joint venture Project ("MTJV") (Barra Resources Limited (ASX: BAR) and Fission Energy Limited (ASX: FIS)) where a mineral resource of 29 million tonnes at 0.56% Ni, 0.12% Co, and 0.88% Mn has been established. The MTJV is currently completing a pre-feasibility study to treat the resource through atmospheric leaching processes.

Pioneer has flown a low-level, detailed aeromagnetic survey of the area which shows the various facies of the Mt Thirsty ultramafic sequence; and field checking by Pioneer's geologists has been completed. A 3km long demagnetised zone is interpreted as the pervasively weathered extension of the olivine cumulate-textured peridotite which hosts the MTJV's deposit.

During 2008, Pioneer completed an 86 hole 3,248m RAB drill program on drill lines 400m apart with hole spacings along the lines 80m apart closing to 40m over prospective areas.

Significant results of the drill program are given in the table below.

Mt Thirsty South RAB Drilling: Significant Assay Results
Hole ID East (m) North (m) EOH (m) Dip From (m) To (m) Interval (m) Co (ppm) Ni (%) Mn (%)
MTB0025 371,739 6,444,405 66 -90 33 52 19 890 0.34 0.53
MTB0026 371,658 6,444,401 86 -90 32 48 16 1,000 0.43 0.79
MTB0037 371,739 6,443,999 59 -90 7 13 6 2,747 0.21 4.31
Including 3 4,634 0.26 5.80
MTB0054 371,586 6,443,598 49 -90 8 15 7 925 0.62 0.49
MTB0065 371,666 6,443,200 45 -90 8 12 4 863 0.40 0.66
MTB0068 371,742 6,445,198 54 -90 22 27 5 842 0.46 0.45
MTB0070 371,581 6,445,201 54 -90 22 26 4 1,181 0.45 0.94
MTB0075 371,777 6,444,398 75 -90 32 38 6 1,532 0.35 1.04
MTB0076 371,697 6,444,402 65 -90 34 36 2 1,243 0.41 0.50
  • Drill hole collar positions determined by hand held GPS receiver MGDA94-51 datum
  • Analytical results: Kalassay Group. Technique is pressed powder XRF
  • Intersection grade based on composite and some single metre samples
  • Length weighted average grade reported
  • Intercepts are "down-hole" metres. No estimate regarding true thickness is made or implied.

Given the broad spacing of the drilling the results indicate the same tenor of mineralisation within the Pioneer project as in the MTJV area.

Pioneer will continue monitoring the treatment options for lateritic ore styles. Test work reported by the MTJV provides encouragement for the application of moderate temperature, ambient pressure leaching using weak acid solution to recover acceptable proportions of the key payable metals. This could mean that an eventual treatment plant would have a much lower construction cost when compared to PAL alternatives.