Annual Report 2005 - Pioneer Resources Limited

Project ReviewRavensthorpe Joint Venture ProjectRAVENSTHORPEJOINT VENTURE PROJECT• Galaxy Resources Limited 100%(copper, gold).• Pioneer right to earn 75% in allminerals through spending$0.50 million.The Ravensthorpe Joint VentureProject is located near the town ofRavensthorpe, Western Australia. The projectcovers approximately 23.5 square kilometres.FIG.6 ELVERDTON-DESMOND MINEWORKINGS WITH COPPER METAL CONTOURSMetal contours : Metres x % Cu0 - 2 m% 6 - 8 m%2 - 4 m% > 8 m%4 - 6 m%ELVERDTON SHAFTThe project presents an excellent opportunity for Pioneerto diversify into copper and gold exploration and adds anadvanced project to Pioneer’s tenement portfolio.The project contains the district’s four principle historical copper mines:the Elverdton, Mount Desmond, Mount Cattlin and Marion Martin,which together produced nearly 50% of Western Australia’s copper between1899 and 1971.PROJECT STATUSSince production ceased in 1971, no mining and very little exploration has been undertaken on the jointventure tenements, however there is currently a mining renaissance occurring in Ravensthorpe. BHP-Billiton isconstructing its $1.8 billion Ravensthorpe Nickel Operations nickel laterite facility and Tectonic Resources NL is conducting afeasibility study for its 605,000oz Phillips River Gold Project. Pioneer’s operations at Ravensthorpe will benefit from therevitalised mining culture and new infrastructure.Pioneer has compiled data from mine plans into a digital database and 3D-computerised model. Analysis is ongoing,however it is evident that the project has potential for several styles of mineralisation including:• Down plunge extensions to the copper-bearing structures;• Mineralisation along strike from current workings;• Lower grade mineralisation that envelopes high grade shoots;• Near-surface copper carbonate resources; and• Gold co-mineralisation.Pioneer Nickel Annual Report 200510