Annual Report 2005 - Pioneer Resources Limited

Project ReviewPioneer Project360000 mE380000 mEPIONEER PROJECT• Pioneer 100% (nickel, gold).6440000 mN 6460000 mN 6480000 mN0 5 10kilometresE15/573HHE63/753JHHH BBFIG.8 PIONEER JH TENEMENT MAPPioneer JH Project TenementOther Project TenementGreenstone including ultramaficRecent SedimentsGranitePioneer ProspectNiS DepositNORSEMANThe Pioneer Project is located 125km south east of Kalgoorlie and covers an area ofapproximately 70 square kilometres. The project includes 22 strike kilometres ofultramafic units, interpreted by Pioneer to be the southern equivalent of theWidgiemooltha Greenstone Belt, which hosts many nickel sulphide mines anddeposits.Within Pioneer’s tenement area, nickel sulphide mineralisation was first identified atthe JH and BB Prospects during the 1970s.PROJECT STATUSPioneer has completed drilling to test the nature of nickel sulphide mineralisationpresent at the JH and BB Prospects. Structurally remobilised, disseminated andmassive nickel sulphide mineralisation was intersected in several zones.REVERSE CIRCULATION AND DIAMOND DRILLINGPioneer has completed drilling totalling 8 RC holes for 1,468m and 2 diamond holesfor 399.4m during the year. Whilst some holes intersected nickel sulphidemineralisation, other drill holes encountered flanking sheet flow ultramafic andintercalated sedimentary units, effectively delineating the margin of the prospectiveultramafic channel. Significant results are included in Table 3.TABLE 3: SIGNIFICANT Ni RESULTS FROM RC AND DIAMOND DRILLING:PIONEER PROJECTHOLE ID PROSPECT NORTH EAST FROM TO INTERCEPT Ni Cu(m) (m) (m) (m) (m) (%) (ppm)PND001 JH 6,461,814 371,674 68.88 69.00 0.12 2.08 22,700and 73.25 77.00 3.75 1.04 758including 75.87 76.25 0.38 3.91 3,160PNR001 JH 6,461,555 371,796 172.00 174.00 2.00 0.46 157PNR002 JH 6,461,406 371,861 90.00 92.00 2.00 0.87 293PNR003 BB 6,460,655 371,949 68.00 72.00 4.00 0.47 113GRID COORDINATES ARE GDA94-51Pioneer Nickel Annual Report 200512