THE DRILL SERGEANT: Pioneer Resources (ASX: PIO) has resumed drilling at the company’s Dome North lithium group located betwixt Kalgoorlie and the Port of Esperance in Western Australia.
Pioneer Resources is drilling at the project on a group of prospects where a suite of spodumene-pegmatites was recently discovered.
The latest drilling follows on from the company’s announcement in October of high-grade lithium drilling results from the Cade deposit.
Pioneer’s geology team has recently claimed discovery of three separate pegmatites containing the premium lithium mineral spodumene at the Northern Pioneer Dome.
First pass of drilling returned very encouraging lithium results beneath two of the pegmatites, and more recent work has highlighted four other targets for drilling.
This second drilling program will be completed in three parts:
Extensional drilling at the Cade deposit (to the North East and South) and at Spodumene Target 1;
First Pass drilling at Spodumene Target 3 where pegmatite outcrops, as well as other geochemical and geophysical targets; and
Diamond core drilling into the Cade spodumene deposit to provide samples for metallurgical testing.
In all, six targets will be tested during this campaign, with drilling expected to be completed before the end of the year with assay results expected to be available during January 2020.
“The first round of drilling, which identified the significant Cade spodumene deposit and other mineralised pegmatites, was an unqualified success,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.
“The current drilling campaign will extend on this success, testing a range of targets generated through mapping, soil geochemistry and ground geophysics, and is designed to enable the company to get a sense of the potential scale of the project.”
Having completed its first mining operation at the Sinclair caesium mine, and now being well-funded through the sale of pollucite, Pioneer is returning to being an active explorer with its stated focus being key global demand-driven commodities to provide its next mining opportunity.
Sale of the final shipment of crushed high-grade pollucite is scheduled for the end of November.
Total sales for the period from 1 July 2019 to 31 December 2019 are expected to total approximately US$4.8 million (approx. $7 million).
From a cash perspective, Pioneer held $5.7 million in cash at the end of October and a further $1 million is expected to be received from the remaining sales of high-grade pollucite.