Microsoft Word - PIO_Update_BlairV3.docx
27 January 2015
ASX/Media Announcement
PIONEER TO COMMENCE DRILLING AT BLAIR NICKEL MINE
Gossan discoveries highlight new potential for Nickel Sulphide mineralisation
Pioneer Resources Limited ("Pioneer" or the "Company" (ASX: PIO)) is pleased to announce plans for its next phase of drilling, to be conducted at its 100% owned Blair Nickel Mine, in Western Australia's Eastern Goldfields.
Drilling is planned to commence in February 2015, and is designed to confirm the presence of previously unrecognised ultramafic lava ("komatiite") channels which may host nickel sulphide mineralisation in close proximity to the historical Blair Nickel Mine.
Mapping and geochemistry from December 2014 and January 2015 provided new geological information and three new gossans were identified. The gossans exhibit elevated nickel and copper, and extremely elevated platinum/palladium (PGM) values - up to 1.89 g/t combined PGM, strongly suggesting they have a magmatic sulphide origin (see Table 1 for Selected Gossan Rock Chip Assay Results).
The forthcoming program of stratigraphic drill holes will test the resulting updated geological model for the near- Blair Mine area, which draws together elements from the recent geological mapping, geochemistry and the interpretation of high resolution aeromagnetic data.
The Company anticipates that results from the program will be released in March 2015. Gossan sample assay results included:
Table 1
Selected Gossan Rock Chip Assay Results
|
Location
|
Northing
|
Easting
|
Comment
|
Ni ppm
|
Cu ppm
|
Pd g/t
|
Pt g/t
|
Cr ppm
|
Fe
%
|
Zn ppm
|
G1
|
6579317
|
377121
|
Vuggy ironstone
|
733
|
247
|
1.462
|
0.431
|
5530
|
2.26
|
678
|
G2a
|
6579277
|
377193
|
Ironstone
|
2600
|
630
|
0.227
|
0.098
|
2730
|
33.3
|
62
|
G2b
|
6579273
|
377198
|
Rusi - vuggy silcrete
|
648
|
310
|
0.739
|
0.458
|
688
|
2.1
|
45
|
G3
|
6579277
|
377457
|
Massive ironstone
|
3946
|
1241
|
0.277
|
0.256
|
1882
|
49.19
|
184
|
Pioneer plans to drill a minimum of 50 RAB holes for 3,000m on traverses to pinpoint the base to the ultramafic rock sequence (refer figures 2 and 3) in areas of no outcrop, where soil geochemistry has proved ineffective. This will be followed by some 2,000m of RC drilling to test the nature of the basal contact along the 04 and 05 surfaces, and an EM conductor up-plunge of the Area 57 nickel shoot. A successful program will confirm the presence of fertile komatiite channels (elevated nickel, high magnesium, low chrome komatiite with copper and PGM anomalism), and down-hole EM surveys to test for conductive rocks which may include nickel sulphides, will follow.
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The accepted Kambalda-style nickel sulphide deposit model, which applies to the Blair Nickel Mine, describes the accumulation of nickel sulphides at the basal contact of komatiitic lava channels.
Often, as is the case throughout Kambalda, Widgiemooltha, Forrestania and other nickel mining camps, there are multiple fertile komatiite channels flanked by sequences of unmineralised komatiites and sediments within a reasonably close geographic area.
"During the past 15 years, we have seen companies such as Panoramic, Mincor, Independence and Western Areas have tremendous success in discovering new nickel ore bodies within clusters at their respective nickel projects. For a number of reasons the Blair Mine has never received close attention outside of the original discovery area, however recent work by Pioneer, since moving to outright ownership of the Blair mining lease in 2012, has highlighted new areas where we believe prospectivity is high," Pioneer's Managing Director Mr David Crook said.
On 28 November 2013 Pioneer announced a remnant and un-mined Mineral Resource estimate for the Blair Mine (Blair 01-03 surfaces) of 222,710t of nickel sulphide ore with a grade of 2.92% Ni, as summarised by category in Table 1 below:
Table 2. Mineral Resource Summary by Category: Blair Nickel Mine
Class
|
Tonnes
|
Ni
|
Ni Metal
|
(t)
|
(%)
|
(t)
|
Indicated
|
75,560
|
4.37
|
3,300
|
Inferred
|
147,150
|
2.18
|
3,210
|
Total
|
222,710
|
2.92
|
6,510
|
Note: Appropriate rounding applied
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 1. The Blair Nickel Mine is located approximately 35km south-east of Kalgoorlie, Western Australia.
Figure 2: Stylised oblique geological model of the near-Blair Mine area showing the interpreted surface trace of
the ultramafic basal contact. The interpretation includes at least 3 areas of thickened, highly magnetic komatiite, which might represent channels, where marked.
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-
_
Discovery Gossan
"-'
z
E
z
E
o
-
ar
+
+
-
+ + •·\'·-•·!r·.
[l NickelSulphide Target Zone
/ Utl ramafic BasalContact
t::::J SAM EM Conductor
e Proposed RAB Hole
Proposed RC Drill Hole
U NickelGossan
Sedimentary Rocks
/ Banded Chert/Shale Low MgO Ultramafie High MgO Ultramafie
/ NickelSulphide
\..._
+'o + +
South57_01
+ + + +
+ + + +
•Basalt
Y Fault + + + +
Figure 3: Geologica! pian showing target zones that will be progressively tested. Priority targets are the proposed Blair 04 and Blair 05 surfaces, and the A57_02 target. Blue and orange dots show the planned drill hole locations.
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APPENDIX 1.
Rock chip assay results
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APPENDIX 2
JORC Code, 2012 Edition - Table 1 report
Section 1 - Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Golden Ridge - Blair Nickel Mine Project, Rock Chip Sampling.
Criteria
|
JORC Code explanation
|
Commentary
|
Sampling techniques
|
• Nature and quality of sampling (eg cut Faces, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down-hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
|
• Random Chips.
|
Sampling techniques
|
• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
|
• Numerous small chips taken from an outcrop provides greater representatively, rather than a single larger chip.
|
Sampling techniques
|
• Aspects of the determination of mineralisation that are Material to the Public
Report.
• In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
|
• Samples were collected for analysis by a commercial laboratory by a geologist while mapping.
• 3.0kg samples are submitted for analysis.
|
Drilling techniques
|
• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of Diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
|
• Not applicable to rock chip sampling
|
Drill sample recovery
|
• Method of recording and assessing core and chip sample recoveries and results assessed.
|
• Not applicable to rock chip sampling
|
Drill sample recovery
|
• Measures taken to maximise sample recovery and ensure representative nature of the samples.
|
• Not applicable to rock chip sampling
|
Drill sample recovery
|
• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
|
• Not applicable to rock chip sampling
|
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Criteria
|
JORC Code explanation
|
Commentary
|
Logging
|
• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
|
• Not applicable. Not used for Mineral Resource calculations
|
Logging
|
• Whether logging is qualitative or quantitative in nature. Core (or costean, Face, etc)
photography.
|
• Qualitative
|
Logging
|
• The total length and percentage of the relevant intersections logged.
|
• Not applicable to rock chip sampling
|
Sub-sampling techniques and sample preparation
|
• If core, whether cut or sawn and whether quarter, half or all core taken.
• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
• For all sample types, the nature, quality and appropriateness of the sample preparation technique.
|
• Not applicable to rock chip sampling
|
Sub-sampling techniques and sample preparation
|
• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
|
• Not applicable to rock chip sampling
|
Sub-sampling techniques and sample preparation
|
• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
|
• No
|
Sub-sampling techniques and sample preparation
|
• Whether sample sizes are appropriate to the grain size of the material being sampled.
|
• Not applicable to rock chip sampling
|
Quality of assay data and laboratory tests
|
• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
|
• Gold, platinum and palladium analysed by Intertek analysis code FA50/SAA.
• Base metal assays were by Intertek code 4A/OE.
• For Gold, platinum and palladium: The sample preparation and assay method (fire assay, mass spectrometer finish) is considered to be standard industry practice and is appropriate for the type of deposit. The fire assay technique is a near total
assay.
• For other elements: The sample preparation and assay method (4 acid digest ICP OES finish) is considered to be standard industry practice and is appropriate for the type of deposit. The 4 acid digest technique is a near total assay
|
Quality of assay data and laboratory tests
|
• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
|
• Not used
|
Quality of assay data and laboratory tests
|
• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
|
• Laboratory standards and blanks only.
|
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Criteria
|
JORC Code explanation
|
Commentary
|
Verification of sampling and assaying
|
• The verification of significant intersections by either independent or alternative company personnel.
• The use of twinned holes.
|
• Not applicable to rock chip sampling
|
Verification of sampling and assaying
|
• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
|
• Pioneer has a digital SQL database where information is stored.
• The Company uses a range of consultants to load and validate data, and appraise quality control samples.
|
Verification of sampling and assaying
|
• Discuss any adjustment to assay data.
|
• Pioneer has not adjusted any assay data.
|
Location of data points
|
• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
|
• Locations were ascertained using a hand-held GPS with an accuracy of +-5 metres.
|
Location of data points
|
• Specification of the grid system used.
|
• MGA94 (Zone 51)
|
Location of data points
|
• Quality and adequacy of topographic control.
|
• Hand-held GPS does not measure RL accurately. Surface is assumed to be flat.
|
Data spacing and distribution
|
• Data spacing for reporting of Exploration Results.
|
• Random
|
Data spacing and distribution
|
• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
|
• Not applicable. Not used for Mineral Resource calculations
|
Data spacing and distribution
|
• Whether sample compositing has been applied.
|
• No
|
Orientation of data in relation to geological structure
|
• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
|
• Not applicable to rock chip sampling
|
Sample security
|
• The measures taken to ensure sample security.
|
• Not applicable to rock chip sampling
|
Audits or reviews
|
• The results of any audits or reviews of sampling techniques and data.
|
• Sampling techniques for assays have not been specifically audited but follow common practice in the Western Australian gold industry.
• The assay data and quality control samples are periodically audited by an independent consultant.
|
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Section 2 - Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
|
Mineral tenement and land tenure status
|
• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites
|
• The mapping and sampling reported herein of the near- Blair Nickel Mine is entirely within M26/220 which is a granted Mining Lease.
• The tenement is located approximately 35km ESE of Kalgoorlie WA.
• Golden Ridge North Kalgoorlie Pty Ltd, a wholly-owned subsidiary of Pioneer Resources Limited is the registered holder of the tenement and holds a 100% unencumbered interest in all minerals within the tenement.
|
Mineral tenement and land tenure status
|
• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
|
• At the time of this Statement M26/200 is in Good Standing. To the best of the Company's knowledge, other than industry standard permits to operate there are no impediments to Pioneer's operations within the tenement.
|
Exploration done by other parties
|
• Acknowledgment and appraisal of exploration by other parties.
|
• Data from earlier an announcement by the Company is referenced. This announcement was lodged on ASX on 28 November 2013, entitled Mineral Resource estimate for the Blair Nickel Mine.
|
Geology
|
• Deposit type, geological setting and style of mineralisation.
|
• The Blair Nickel Mine and exploration targets are Kambalda-style nickel sulphide deposits.
• The mineralisation is hosted within a suite of komatiite rock.
|
Drill hole
Information
|
• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes, including easting and northing of the drill hole collar, elevation or RL
(Reduced Level - elevation above sea level in metres) of the drill hole collar, dip and azimuth of the hole, down hole length and interception depth plus hole length.
• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
|
• Refer to Appendix 1 of this announcement.
• Assays included are considered material. Those omitted are not considered material.
|
Data aggregation methods
|
• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation
should be stated and some typical examples of such aggregations should be shown in detail.
• The assumptions used for any reporting of metal equivalent values should be clearly stated.
|
• Assays are reported as received.
|
Relationship between mineralisation
|
• These relationships are particularly important in the reporting of Exploration
Results.
• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
|
• Not applicable to rock chip samples, which are point data
|
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Criteria JORC Code explanation Commentary
|
widths and
intercept lengths
|
• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').
|
Diagrams
|
• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
|
• Refer to figures in this report.
|
Balanced reporting
|
• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
|
• Comprehensive reporting of rock chip details has been provided in Appendix 1
|
Other substantive exploration data
|
• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
|
• All meaningful and material exploration data has been reported.
|
Further work
|
• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
|
• Traverses of stratigraphic RAB drilling and individual RC drill holes are planned.
|
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Competent Person
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) and the Australian Institute of Geoscientists. Mr Crook and/or consultants to the Company have sufficient experience which is relevant to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Additional information in respect of geochemical data and interpretations was provided by Dr Nigel Brand and information in respect of geology was supplied by Mr Don Huntly. Mr Crook, Dr Brand and Mr Huntly 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.
Glossary:
"g/t" means grams per tonne (used for precious metals) and is equivalent to ppm. "ppm" means 1 part per million by weight.
"Aircore" and "RAB" are cost-effective drilling technique used to test the regolith (near surface unconsolidated and weathered rock) for plumes of trace-level mineralisation.
"EM" means electromagnetic, a type of geophysical survey designed to locate conductive geological units which might include nickel sulphides.
"RC" means reverse circulation, a drilling technique that is used to return uncontaminated pulverised rock samples through a central tube inside the drill pipes. RC samples can be used in industry-standard Mineral Resource estimates.
"N", "S", "E", or "W" refer to the compass orientations north, south, east or west respectively. Elements:
"Cu" copper, "Mg" magnesium, "Ni" nickel, "Pd" palladium, "Pt" platinum, "PGM" platinum group metals (in this case Pd+Pd), "Zn" zinc
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