“Encouraging” assay results from recent drilling at the Leo Dam prospect has led Pioneer Nickel Ltd to announce it will continue exploratory work despite a depressed nickel market.
The company has also lifted its equity from 51 per cent to 53.6 per cent in the Golden Ridge joint venture – Leo Dam is part of the venture – with Australian Mines Ltd.
Leo Dam is 1.5 kilometres north-east of the Blair nickel mine, operated by Australian Mines, 35 kilometres south-east of Kalgoorlie.
Pioneer's managing director, David Crook, said that because of the very significant results continuing activity at Leo Dam will remain a priority.
“The Company has a first class nickel sulphide target within a stones throw of a nickel sulphide mine. While the current nickel price is relatively depressed, the mid-term prognosis is better and Pioneer plans to be in a position to take full advantage of this excellent opportunity when the market improves,” Mr Crook said.
He said the strong nickel, copper, platinum and palladium assay results from drilling at Leo Dam were “an excellent sign” that nickel sulphides were present and the broad nature of the intercepts “suggests that a significant zone of cloud sulphides may be present”.
The mineralisation has been defined on three drill hole cross sections over a strike of about 350 metres. The strike remains open to the north and south, Mr Crook said.
The next phase of work will include further drilling to establish the length of the strike and electromagnetic surveys, he said.