an investment in aggressive exploration...2005/07/28 · exploration david crook managing director...
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ASX: PIO
An Investment in Aggressive Exploration
David Crook Managing Director
July 2005
Disclaimer
The information contained in this presentation is not financial product advice. The presentation is for information purposes and is of a
general and summary nature only. Pioneer Nickel Limited gives nowarranties in relation to the statements and information in this
presentation. Investors should seek appropriate advice on their own objectives, financial situation and needs.
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Overview
Pioneer Nickel listed on the ASX in 2003 to develop under-explored nickel sulphide projects around the proven Kambalda and Goldfields regions of Western Australia.
Through aggressive exploration Pioneer aims to become a producer within three years.
Building for Success
• Advanced exploration projects near major nickel discoveries
• Tenement portfolio near established infrastructure
• Strong support from major nickel producer
• Immediate highly prospective drill targets– Acra – Jubilee actively exploring– Wattle Dam – targets adjacent to nickel sulphide mines– Pioneer – nickel sulphide intersections require follow-up– Ravensthorpe – potential to develop copper/gold ore
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Pioneer is Western Australia Focused
Ravensthorpe Cu-Au JV
Pioneer
Acra JV Wattle Dam
Experienced Board of Directors
Reg Gillard – ChairmanAn accountant with more than 30 years of experienceHolds a number of Board positions on ASX listed companies with particular focus on the resources sector
David Crook – Managing DirectorA geologist with 24 years experience in exploration, mining and managementHas held senior exploration and mining operations roles, including 7 years as exploration manager for Heron Resources Limited
Allan Trench – Non-Executive DirectorA mineral economist, geophysicist and business management consultant (previously McKinseys)Previously led nickel sulphide exploration teams for WMC Resources Held senior business advisory role with KCGM and now for Woodside.
Ian Buchhorn – Non-Executive DirectorA mineral economist and geologist with 30 years experience both in Australia and overseasCurrent Managing Director of Heron Resources Limited
Peter Langworthy – Non-Executive DirectorA geologist with 20 years experienceCurrently Exploration Manager of Jubilee Mines NL
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Experienced Technical Management
• David Crook – Managing DirectorA 24 year career in exploration, mining and management, with a good discovery record. Includes participation in the delineation of Radio Hill Mine, Gidgee Gold Mine and the Kalgoorlie Nickel Project deposits. Has held senior exploration and mining operations roles, including 7 years as exploration manager for Heron Resources Limited. Founding Managing Director of Pioneer Nickel Ltd.
• Clayton Davy’s - Exploration ManagerA Geologist with 12 years experience with a strong nickel sulphide field exploration focus.Industry experience includes 10 years with WMC (and Gold Fields) at its Norseman Gold and Kambalda Nickel and Gold operations, in exploration and mining roles. Had previously worked on the Widgiemooltha Dome, Kambalda and West Musgrave Nickel Provinces.
• Haydn Hadlow – Business Development ManagerHas an MSc in Economic Geology from University of WA, followed by nearly 20 years industry experience, including Chief Geologist of Kanowna Belle and Kundana Gold Mines, Black Swan Nickel Mine, and Thalanga Base Metals Mine. He has also been Technical Services Manager of Placer Dome’s Kalgoorlie West Operations, and Senior Geologist and Planning Team Leader of the Mount Isa Lead Mine. His aim is to help Pioneer Nickel grow from junior explorer to mid-tier producer.
Financial Snapshot
• Issued Shares 48.1m• Unlisted Options (25 cents) 10.8m• Share Price (as of 27/7/05) 17.5 cents• 12 Month Range 9.5 – 28.0 cents• Market Capitalisation $8.4m• Cash $1.6m ($1.9m)• Volume per Day ~160,000
Largest Shareholders
Jubilee Mines NL 13.5%Kurana Pty Ltd 9.6%Grosvenor Pirie Mgmt Ltd 4.3%ANZ Nominees 3.1%
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120.
5 °
-31 °
-30.5 °
-30 °
121
°
120
°
-31.5 °
122.
5 °
123
°
-33.5 °
-33 °
-32.5 °
-32 °
122
°
121.
5 °
RavensthorpeRavensthorpeRavensthorpeRavensthorpeRavensthorpeRavensthorpeRavensthorpeRavensthorpeRavensthorpe
HigginsvilleHigginsvilleHigginsvilleHigginsvilleHigginsvilleHigginsvilleHigginsvilleHigginsvilleHigginsville
Maggie Hays Lake JVMaggie Hays Lake JVMaggie Hays Lake JVMaggie Hays Lake JVMaggie Hays Lake JVMaggie Hays Lake JVMaggie Hays Lake JVMaggie Hays Lake JVMaggie Hays Lake JV
Ravensthorpe Cu-Au JVRavensthorpe Cu-Au JVRavensthorpe Cu-Au JVRavensthorpe Cu-Au JVRavensthorpe Cu-Au JVRavensthorpe Cu-Au JVRavensthorpe Cu-Au JVRavensthorpe Cu-Au JVRavensthorpe Cu-Au JV
Aerodrome JVAerodrome JVAerodrome JVAerodrome JVAerodrome JVAerodrome JVAerodrome JVAerodrome JVAerodrome JV
EsperanceEsperanceEsperanceEsperanceEsperanceEsperanceEsperanceEsperanceEsperance
NorsemanNorsemanNorsemanNorsemanNorsemanNorsemanNorsemanNorsemanNorseman
KambaldaKambaldaKambaldaKambaldaKambaldaKambaldaKambaldaKambaldaKambalda
Silver Swan NWSilver Swan NWSilver Swan NWSilver Swan NWSilver Swan NWSilver Swan NWSilver Swan NWSilver Swan NWSilver Swan NW
Larkinville JVLarkinville JVLarkinville JVLarkinville JVLarkinville JVLarkinville JVLarkinville JVLarkinville JVLarkinville JV
MenziesMenziesMenziesMenziesMenziesMenziesMenziesMenziesMenzies
CoolgardieCoolgardieCoolgardieCoolgardieCoolgardieCoolgardieCoolgardieCoolgardieCoolgardie
PioneerPioneerPioneerPioneerPioneerPioneerPioneerPioneerPioneer
Acra JVAcra JVAcra JVAcra JVAcra JVAcra JVAcra JVAcra JVAcra JV
Wattle DamWattle DamWattle DamWattle DamWattle DamWattle DamWattle DamWattle DamWattle Dam
KalgoorlieKalgoorlieKalgoorlieKalgoorlieKalgoorlieKalgoorlieKalgoorlieKalgoorlieKalgoorlie
800 40
kilometres
Pe rth
Ka lgoorlie
We are exploring 4 projects on a high priority basis: This Quarter
Wattle Dam ProjectNiS at 1A NDH EM 1A S
1000m planned August 2005
Pioneer JH ProjectNickel Sulphides intersected
800m planned September 2005
Acra JV ProjectJBM Managers
3,363.3 metres drilledVery active on-going programmes
Ravensthorpe JV ProjectJV HOA Signed
Drilling planned and scheduled to start immediately on grant of tenement
Aggressive Exploration –Acra Joint Venture Project
• Project covers 140km strike length of ultramafic sequence
• Jubilee earning up to a 75% interest by spending $6.9 million. To date have spent $1.2 million
• High tenor and disseminated nickel sulphides identified over 700m strike
• Nickel Sulphide and Gold targets are being drilled
N67
0000
0 m
N
350000 mE 400000 mE
6650
000
mN
6750
000
mN
0 15 30
kilometres
6
Geological Model Developed
Geological Model Developed
7
Clear Focus for Drilling
MgO colored by Ni with red Ni shells > 4000 ppm
• Pioneer owns 100%
• Excellent prospectivity – North Widgiemooltha Greenstone Belt
• 1,000m of drilling planned to test strong nickel sulphide indicators
Aggressive Exploration –Wattle Dam Project
355000 mE 360000 mE 36
6525
000
mN
6530
000
mN
6535
000
mN
350000 mE
6540
000
mN
6545
000
mN
0 2.5 5
kilometres
8
Immediate Drill Targets
Immediate Drill Targets
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• Pioneer owns 100%
• 800m RC and diamond drilling programme planned
• Target is down plunge of nickel sulphide intersections
Aggressive Exploration –Pioneer Project
380000 mE360000 mE 400000 mE
4200
00 m
N64
4000
0 m
N64
6000
0 m
N64
8000
0 m
N
0 5 10
kilometres
Immediate Drill Target
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• 23.7 square kilometres near Ravensthorpe
• Consistent with acquisition strategy following Acra JV
• Ravensthorpe region hosted historic Cu and Au mining. Up to closure of the mines in 1971 Ravensthorpe had accounted for half of all WA’s copper production.
• Pioneer earning 75% by spending $500,000 over 5 years.
• Pioneer will focus exploration on areas of significant past Cu/Au production
Recent Acquisition –Ravensthorpe Cu-Au JV Project
105
kilometres0
Summary of Ravensthorpe Area Geology
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Summary of Ravensthorpe Area Geology
•• Host rock: Archaean Annabelle Volcanics Host rock: Archaean Annabelle Volcanics •• Intruded by Intruded by ManyutupManyutup Tonalite Tonalite •• ShearShear--hosted disseminated to semihosted disseminated to semi--
massive, chalcopyritemassive, chalcopyrite--goldgold--pyritepyrite--pyrrhotitepyrrhotite--magnetitemagnetite--silver mineralisationsilver mineralisation
•• Various ore deposit models proposed, Various ore deposit models proposed, including: including:
1.1. porphyry Cuporphyry Cu--Au (Au (SofoulisSofoulis 1958, Savage 1958, Savage 1992), 1992),
2.2. syntectonicsyntectonic--synmetamorphicsynmetamorphic Archaean Archaean lodelode--gold style (Witt 1995), and gold style (Witt 1995), and
3.3. subsub--seafloor volcanogenic (Witt 1998)seafloor volcanogenic (Witt 1998)
Three Historical Underground Cu-Au MinesElverdton-Mt Desmond
• 12km SE of Ravensthorpe
• mined from 1901-1918 as several small ùnderground mines
• re-opened as a single underground operation in 1957 by RCM
• ?70,000tpa Elverdton concentrator.
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Project Exploration Potential
Potential for:
• Broad halo of lower-grade copper and gold mineralisation amenable to open pit mining, both oxide and sulphide
• Strike extensions and lodes parallel to previously exploited narrow high-grade ore positions
• Down plunge extensions to high-grade shoots below 200m• The presence of gold throughout the system• Discovery of further mineralised lodes in the region
Copper Assays (only)Elverdton-Desmond Costeans (1000ft N - 1600ft N) circa 1970’s
Approx. “Strike Length = 533ft (164m)Approx. Average “Width” = 64ft (19.6m)Approx. Average Grade = 0.80% Cu
.90.40.40.60.60
.80
.35.75.801.00.60
1.001.50
.70
.80
.90
.801.10
.70
.40
.702.40
.90
.40
1.00.90
1.00.90
.551.95
.30
.80
.70
.70
.451.201.20
.60
.40
.35
.501.10
.651.25
.70
.40
.85
.65
.701.00
.35
.40
.50
.75
.45
.90
.60 .701.701.12
.90
.80
.50
.90
.80
.901.10
.85
.75
.90
.60
.901.60
.831.602.201.60.60
1.10.30.40.30.40
.65.50.72
1.001.45.75.95.40.30.50.40.30
Av = 0.73%Cu
Av = 0.94%Cu
Av = 0.76%Cu
Av = 0.79%Cu
Av = 0.82%Cu50 feet
(15.24m)
700ft E
600ft E
500ft E
“Strike Length” = 533ft (164m)
Elverdton-Desmond: Potential for Open Pit
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Central Fault Block poorly tested
Desmond Shaft
Potential southernstrike extensions
faulted off andpoorly tested
Potential northernstrike extensions
not tested
To PLP surfaceworkings
400m
ElverdtonShaft
5ft (1.5m) @ 3.75% Cuat -500ft (-152m)
Vertical depth
ES25
Fig. 3
Fig. 5
Fig. 1
200 feet
(61m)
200ft E
1000ft E
Le gen d
C ro ss-cutting F ault
D ia mo nd D rill Ho le U /G
D ia mo nd D rill Ho le S urfa ce
105 0ft N C ross Se ction
S urfa ce Cos te en
A A’
Elverdton - Desmond: No. 3 Level -350 feet (-107m)
Elverdton-Desmond: Potential for Open Pit and Strike Extensions
Costeans average 20m at 0.8% Cu. DH Section 12m at 2.1%Cu
North end terminates at major shear zone
South end terminated by fault
Central Zone ore was “lost”
Elverdton - DesmondCross Section 1050ft N
Potential Width of Mineralised Shear
137’ (42m)
– 0 –
-100
-200
-300
-400
50 feet
(15.24m)
Oldworkings
Costean (all assays)74’ (23m) @ 0.82%incl. 47’ (14m) @ 1.05%
? Mineralised Zone(no assays recorded)
Projection ofMain Lode
2 LEVEL
3 LEVEL
7’6” (2.3m) @ 8.5%Cu
Projection ofFootwall
Mineralisation
40’(12.2m) @ 2.1%Cu
Mineralised Zone(no assays recorded)
?
?
??
?
?
F
F
ES 5
Elverdton-Desmond: Potential for Open Pit
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Elverdton No.2 Level -249ft (-76m)Copy of Level Plan from Phillips River Gold & Copper Co. 31/1/1911
500ft E
400ft E
ElverdtonShaft
230ft
(70m)
50 feet
(15.24m)
Width (in) Width (m) Cu% Au dwts Au g/tMax Values 78” 2.0m 16.24% 8.0 12.4 g/tMin Values 12” 0.3m 1.27% 0.0 0.0 g/tAVERAGE 42” 1.1m 9.40% 3.0 4.6 g/t
Elverdton-Desmond: Gold Potential
Elverdton-Desmond: Down Plunge Potential
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Elverdton-Desmond: Down Plunge Potential
AA’
850m
N
1.5m3.5%Cu
●● ●
●
1.0m 9.4%Cu
10.5m at 1.40%Cu(incl. 0.7m at 6.0%Cu)
2.5m2.2%Cu1.4m
3.0%Cu
●
Elverdton ShaftDesmond Shaft
Milestones to Monitor
Acra JV ProjectFurther Drilling Planned; Significant Budget Allocation
Wattle DamNickel Sulphide Targets Scheduled for Drilling August 2005
PioneerDrilling to Test Nickel Sulphide Targets Scheduled September 2005
Ravensthorpe Western Copper JVDrilling will commence immediately key tenement is granted
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ASX: PIO
David CrookManaging Director
45 Brookman St, Kalgoorlie WA
Ph: (08) 9091 6974
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