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Exploration Strategy
Corporate Strategy
Pioneer Nickel Limited is a specialist nickel exploration company seeking to develop Nickel Sulphide deposits in the region of the Pioneer-Widgiemooltha-Depot Domes south and west of Kambalda, and the Acra-Silver Swan region northeast of Kalgoorlie, Western Australia.
Pioneer's aim is to leverage off its expertise in nickel project acquisition, by employing a modern, well funded exploration strategy involving systematic TEM and drill exploration of the acquired projects, to explore for Nickel Sulphides.
In addition, Pioneer will seek to develop strategic relationships with established nickel industry participants.
Total world nickel demand is approximately 1,200,000 tonnes per annum, with the annual rate of demand forecast to increase at 4-5% per annum. This will require nickel industry production growth of some 50,000 tonnes of new metal each year. Nickel, as a commodity, therefore has an excellent short to medium term outlook, being particularly driven by ever-increasing nickel demand in the Chinese stainless steel market.
In Western Australia, the nickel industry commenced with the 1966 Kambalda Nickel Sulphide discovery. The West Australian industry is now a top-four leader in the world market, with a fully integrated industry.
Pioneer has acquired the JH and BB Nickel Sulphide deposits from WMC Resources Limited, and as part of the acquisition, granted to WMC Resources Limited a first right to negotiate an ore purchase agreement.
Exploration Priority
The Directors of Pioneer believe that the discovery potential for the Company's Eastern Goldfields nickel projects is very strong, occurring as they do within mineralised Archaean komatiites that support operating Nickel Suphide mines in close proximity. The Eastern Goldfields has been recognised as a world-class nickel province since the 1966 Kambalda discovery, with individual mines typically ranging in size between 10,000 to 100,000 tonne of contained nickel metal.
The Directors will also seek exposure to geological provinces with the potential to host a world-class nickel mine with potential for 1,000,000 tonne of contained nickel metal. These tend to be hosted by post-Archaean layered mafic complexes, with the great world examples including the Proterozoic Voiseys Bay and Triassic Noril'sk deposits. This strategy for larger discoveries has led the Company to the Heazlewood project in Northwest Tasmania.
Eastern Goldfields Province, Western Australia
The Pioneer tenement portfolio provides a large landholding of 2,433km², predominantly over one of the best documented Eastern Goldfields komatiite Nickel Sulphide provinces, the Pioneer - Widgiemooltha - Depot Domes. These structures are easily accessed and are associated with excellent infrastructure.
The area is considered by the Independent Geologist to be very prospective and to have production potential for nickel and copper, with existing drill targets defined through the application of detailed Transient ElectroMagnetic ("TEM") and magnetic surveys in conjunction with innovative low detection limit surface geochemistry. This exploration methodology will continue as the strategy for future discoveries.
The area is also considered to be prospective for gold and Platinum Group Metals ("PGM").
Geophysical Exploration
Pioneer's exploration will target Nickel Sulphide deposits and utilise appropriate geochemical techniques to detect soil and bedrock anomalies that can generate TEM and drill targets.
Transient ElectroMagnetic Exploration
Nickel Sulphide mineralisation is a conductor, which is the mineralisation property detected in TEM surveys.
Surface TEM
The Emily Ann, Cosmos, Waterloo, and other Nickel Sulphide mines and deposits were all discovered in the past five years predominantly using surface ElectroMagnetic methods.
Surface TEM techniques include:
- Fixed Loop TEM ("FLTEM"); and
- Moving Loop TEM ("MLTEM")
These are used in conjunction, to locate conductors including massive Nickel Sulphide.
TEM surveys are planned at Acra, Pioneer and Wattle Dam immediately following Pioneer listing.
Down Hole TEM
Komatiite-hosted Nickel Sulphide mineralisation commonly has a "pipe-like" or "cigar" shaped geometry, with a spectacular down plunge continuity often in the order of 1,000m. High grade Nickel Sulphide shoots may have a limited horizontal extent, particularly when the plunge is steep. Silver Swan is the classic example of this ore style. When drilling Nickel Sulphide targets it is essential that Down Hole Transient ElectroMagnetic ("DHTEM") surveys be completed to test for EM conductors not actually intersected by the drill hole. DHTEM can detect conductors within 100m of the drill hole.
Director Allan Trench is an industry-acknowledged expert in this field. Pioneer is most fortunate to be able to draw on the expertise of Dr Trench in this highly specialised area of exploration.
Drilling
Conventional Reverse Circulation ("RC") and diamond drilling will be undertaken as necessary to test for high grade Nickel Sulphide.
Drilling will commence immediately upon listing at the Acra project, followed by Pioneer; and further drilling will be scheduled for Wattle Dam and Higginsville as TEM targets are generated.
