flying but no interest on hc, page-17

Fis is even getting a wrap from PIO

MT THIRSTY SOUTH PROJECT HITS PIONEER NICKEL’S EXPLORATION PLANS
Pioneer Nickel Limited (ASX: PIO) is pleased to provide investors with initial details of its Mt
Thirsty South cobalt-nickel-manganese project, located approximately 20km NNW of Norseman,
Western Australia. Pioneer holds a 100% interest in the project.
The Mt Thirsty South Project comprises a single exploration licence application with an area of
114km2. The tenement is expected to be granted within the next few weeks, following which drilling
will commence.
Pioneer’s project is the immediate southern extension of the Mt Thirsty Joint Venture Project
(“MTJV”) (Barra Resources Limited (ASX: BAR) and Fission Energy Limited (ASX: FIS)) where a
resource of 21 million tonne of 0.62% Ni, 0.14% Co and 1.01% Mn is reported (FIS announcement
21 April 2008). In its announcement, Fission Energy states that it has agreed to pay vendors $8.0
million for an effective 50% interest in the MTJV and anticipates completion of a feasibility study by
4Q 2008. Joint Venture drilling occurs to approximately 280m N of Pioneer’s northern tenement
boundary.
Pioneer has flown a low-level, detailed aeromagnetic survey of the area which shows the various
facies of the Mt Thirsty ultramafic sequence; and field checking by Pioneer’s geologists has been
completed. A 3km long demagnetised zone, highlighted on the accompanying figure, is interpreted
as the pervasively weathered extension of the olivine cumulate-textured peridotite which hosts the
MTJV’s deposit.
Commenting on the announcement, Pioneer Nickel’s Managing Director, Mr David Crook said the
preliminary evaluation of Mt Thirsty South was very encouraging.
“Because strike continuity is usually a feature of lateritic deposits, the horizon within our tenement is
considered very prospective for cobalt-nickel-manganese mineralisation,” said Mr Crook.
“Results from previous explorers, who completed traverses of soil sampling on lines 600-800m
apart, are clearly anomalous with elevated cobalt, nickel and manganese values over the targeted
unit,” he said.
“We’re excited about getting involved with Mt Thirsty South and this further proves the importance
of maintaining a pipeline of exploration projects.”
First pass appraisal drilling and sampling results will be reported during the June 2008 quarter.
These drill holes will be the first to test the prospective horizon within Pioneer’s tenement.
Pioneer has been monitoring the development of treatment options for “lateritic” ore styles and is
attracted by this project. Test work reported by Fission Energy provides encouragement for the
application of moderate temperature, ambient pressure leaching using a weak acid solution to
recover acceptable proportions of key payable metals. This could mean that an eventual treatment
plant would have a much lower construction cost when compared with PAL alternative