Annual Report 2005 - Pioneer Resources Limited

Project ReviewAcra Joint Venture ProjectACRA JOINT VENTURE PROJECT(including Boomerang Lake and Jubilee Projects)• Pioneer 100% (nickel, gold, base metals).• Jubilee Mines NL (“Jubilee”) right to earn 75% through cashand sole funding exploration totalling $6.9 million.• Heron Resources Limited retains nickel laterite ore.The Acra Joint Venture Project comprises a portfolio of tenements thatcover approximately 786 square kilometres. The project providesPioneer with a dominant tenement position along the Emu Fault,covering a 140km strike length of highly prospective ultramafic unitsthat have been demonstrated to host both high tenor massive anddisseminated nickel sulphides at a number of locations. Areas of theproject are also considered prospective for gold and base metals.Pioneer and Jubilee have agreed to terms that will see the Lady of theLake Project included into the Acra Project, adding a further 73 squarekilometres of tenure.PROJECT STATUSBaseline data sets for the project have been compiled, with newgeological, geochemical and geophysical data collected. This hasculminated in the construction of a revised geological model for theproject area including the Acra and Jubilee Prospects. Explorationactivities have since focussed on testing the model using reversecirculation and diamond drilling, to locate highly magnesian ultramaficchannels and the position of the basal ultramafic contact. To facilitatedrill hole targeting, a three dimensional geochemical model has alsobeen developed.SURFACE SURVEYSProgrammes of soil sampling, MLTEM and geological mapping wereundertaken at the Tassie Well (Zinc), Boomerang Lake and Acra-JubileeProspects.Surface geochemistry and MLTEM surveys have in-filled and extendedearlier Pioneer surveys, highlighting areas for further work, particularlyin the Jubilee and Acra Prospect areas.Samples of old drill hole spoil were collected from RAB holes at theJubilee Prospect, located approximately 3.5km north west of Acra, thatwere previously assayed for gold. Results have outlined a significantcoincident Ni and Cu anomaly in the vicinity of the Jubilee Gossan withfour very anomalous samples returning between 0.49 and 1.19% Ni,with between 212 and 815ppm Cu.410 000mE412 000mE414 000mEJubileeNi GossanAnomalous Historic RABas detailed in text0.27m at 4.37% Ni4200ppm Cu6622 000mN 33m at 0.51% Ni6622 000mNNi-Cu-PGEgeochemical anomaly19m at 0.54% Ni16m at 0.61% NiNickel SulphideUltramaficSedimentsMafic RockFaultsThrust FaultsNi Geochemical Anomaly42m at 0.56% NiPioneer Nickel Annual Report 2005410 000mE412 000mE414 000mEFIG.4 ACRA-JUBILEE REVISED GEOLOGICAL MODEL & SIGNIFICANT INTERSECTIONS8