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PIONEER RESOURCES LIMITED

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NOVO TO EXPLORE KANGAN GOLD PROJECT IN THE WEST PILBARA ACQUIRES RIGHT TO EARN UP TO A 70% INTEREST

ASX Announcement 18 September 2018 

Perth Western Australia, 18 September 2018: Pioneer Resources Limited ("Company" or "Pioneer", ASX: PIO) is pleased to announce a significant farm-out Agreement with Novo Resources Corp. (“Novo”, TSXV: NVO.V) which will fast track exploration at the Company’s 100%-held Kangan Gold Project (“Project”), located within the Pilbara of Western Australia.

Under the terms of binding agreements and subject to certain regulatory approvals, Novo will: 

  • Pay to Pioneer a signing fee of $200,000 cash; 
  • Issue 100,000 fully paid common shares in Novo (worth circa A$380,000 at current market prices); 
  • Sole fund $0.5 million of exploration expenditure within 2 years to achieve a 70% Earned Interest and then may elect to form a Joint Venture (JV); and 
  • Novo will continue to sole fund all JV expenditure prior to a “Decision to Mine” being made. 
  • Novo will also subscribe to A$1.0 million in Pioneer shares at $0.02 per share.

The Agreement meansthat future Kangan Gold Project exploration programmes will be managed by one of Canada’s most innovative and well-funded gold explorers and the key proponent of the Pilbara Conglomerate-Gold genesis model, driven by Dr Quinton Hennigh.

Pioneer’s Managing Director, David Crook, said: 

“Attracting Novo to the Project endorses the quality of the Kangan Gold Project. Novo has been active in the Pilbara region of WA since 2011 when it invested in the Beatons Creek Gold Project as well as tenements held by well-known mining explorationist, Mark Creasy. 

“Novo has steadily increased its position within the Pilbara as the Conglomerate Gold genesis model1 gained veracity and, most recently, has entered into this specific Agreement with Pioneer targeting the Kangan Project as a good fit with the prevailing exploration model”, he said.

Novo states that its major shareholders include Kirkland Lake, Eric Sprott, Mark Creasy and Newmont.

Kangan Project Provides Exposure to the Emerging West Pilbara Sediment-hosted Gold Province 

Interest in the Pilbara region for gold has surged as explorers engage with the exploration model proposed by Novo Resources Corp. President, Dr Quinton Hennigh1

The Model postulates: 

  • Some of Earth’s earliest land masses (cratons), including Kaapvaal (Southern Africa), Dharwar, Singhbhum and Bastar (Indian subcontinent), and Pilbara (Australia) existed as a single continent, referred to as Ur by some authors including Hennigh;
  • The remnants of the Ur continent have contributed approximately 1.85, 0.35 and 0.1 billion oz gold production, respectively, or about 39% of historic global gold production, estimated to be about 5.9 billion oz [World Gold Council, 2014]. About 75% of this gold has come from the Witwatersrand Basin; 
  • The hypothesis contends that huge quantities of gold were scavenged out of seawater by microbial mats starting at around 3.0-2.9 billion years before present (Ga), initiating a crustal gold depositional event. If this method of gold deposition extended throughout the proposed continent, the Pilbara region is under-represented as far as gold production is concerned.

Lithified sediments within the 3.0-2.9 Ga age (being the age of the Witwatersrand Supergroup in southern Africa, and the age-equivalent De Grey Group in the Pilbara) 2 are currently the targeted rock units receiving exploration interest in the Pilbara, and rocks of this age are mapped within Pioneer’s Kangan Project (Refer to GSWA 1:100,000 Satirist sheet.)

Click here to view the full announcement

PIONEER COMMENCES MINING OPERATIONS AT SINCLAIR CAESIUM MINE

ASX Announcement 13 September 2018 

Perth, Western Australia: 13 September 2018: Pioneer Resources Limited (the "Company" or “Pioneer”) (ASX: PIO) is pleased to announce that mining operations have commenced at the Company’s Sinclair Caesium Mine, located within the 100%-held Pioneer Dome Project, approximately 140km south of Kalgoorlie in Western Australia (Figure 4). 

The Company advises that extraction of overburden (Figure 1) from the upper reaches of the Sinclair Mine Stage 1 Pollucite Pit (Figure 2) is now underway, which will provide access to the deposit of the caesium mineral pollucite, located at depth of approximately 40 metres below surface. 

The Company’s primary focus for the Sinclair Mine is the extraction of the caesium (pollucite) deposit, which is expected to deliver significant revenue to Pioneer. 

The Sinclair Mine will however also yield a range of other minerals. The Sinclair Mine is Australia’s first commercial caesium producer, and one of only 3 in the world. Pioneer is delighted with the progress of the mining set-up to date. The Company’s mining contractor, Hampton Transport Services, recently completed mobilisation to site as well as preliminary site-works, pre-cursers to the commencement of full-scale mining at the Project.

Offtake and Funding Agreement 

In June 2018, Pioneer announced that it had entered into a binding Offtake and Funding Agreement with Cabot Specialty Fluids Ltd, a wholly owned subsidiary of Cabot Corporation (Cabot) (NYSE:CBT) (ASX announcement, 20 June 2018). Under the Agreement Cabot will buy 100% of the caesium ore from the Sinclair Mine, which will be shipped as a Direct Shipping Ore (DSO) product. 

Further, the Company recently announced it had received US$4.8 million (~AUD$6.5 million) from Cabot pursuant to the Offtake and Funding Agreement to fund the development and mining of the Sinclair Caesium Deposit (ASX announcement, 30 August 2018). 

Potassium Feldspar and other Minerals - Potential to Extend Mine Life 

Much of the overburden that requires extraction to provide access to the objective Sinclair Caesium Deposit is high quality potassium feldspar (refer to Figure 2 below and ASX Announcement, 30 July 2018). The potassium feldspar represents a potentially valuable secondary revenue stream for the mine, and it will be stockpiled on-site while the Company advances off-take discussions with end-users (see also Figure 3).

Potassium feldspar is a commercially valuable mineral used in the manufacture of high-end ceramics, sanitaryware and glassware, and variants may be used in the production of advanced “high-temperature” insulators and electro-ceramics.

The Company has provided an Exploration Target1 of 500,000t - 750,000t of potassium feldspar, estimated from surface to a vertical depth of 45 metres (refer to ASX announcement, 30 July 2018) targeting the AGrade ceramic product specification with key element grade ranges of:

Click here to view the full announcement

US$4.8 MILLION RECEIVED FROM CABOT FOR SINCLAIR CAESIUM MINE

ASX Announcement 30 August 2018 


Perth, Western Australia: 30 August 2018: Pioneer Resources Limited (the "Company" or “Pioneer”) (ASX: PIO), is pleased to advise that funds pursuant to the Offtake and Loan Facility Agreement have been received from Cabot Corporation (Cabot) (NYSE:CBT).

The funds are to be applied to the Stage 1 Sinclair Caesium Mine, located within the Company’s 100%- held Pioneer Dome Project, approximately 140km south of Kalgoorlie in Western Australia, which will be Australia’s first ever commercial pollucite (a caesium mineral) producer.

OFFTAKE AGREEMENT WITH CABOT SPECIALITY FLUIDS 

On 20 June 2018, Pioneer announced that it had entered into a binding Offtake and Loan Agreement with Cabot Specialty Fluids Ltd, a wholly owned subsidiary of Cabot, which included:

  • the provision to Pioneer of a US$4.8 million Loan Facility for the Sinclair Caesium Mine, repaid by the delivery of caesium ore; and 
  • the right of Cabot to acquire 100% of the caesium ore extracted from the Sinclair Mine.

Pioneer Managing Director David Crook said; 

“Further to our project update of the 29 August 2018, we are pleased to advise that we have now received US$4.8 million, which equates to approximately AUD$6.5 million, provided for under our Offtake and Loan Facility Agreement with Cabot. The funding is expected to fully cover mining operations at the Stage 1 Sinclair Mine, which will advance immediately.

Click here to view the full announcement

INCLAIR CAESIUM MINE – SITE PREPARATIONS UNDERWAY 

Mining Contractor Mobilising to Site

ASX Announcement 29 August 2018 


Perth, Western Australia: 29 August 2018: Pioneer Resources Limited (the "Company" or “Pioneer”) (ASX: PIO), is pleased to advise that site-works are underway at Pioneer’s Sinclair Caesium Mine, located within the Company’s 100%-held Pioneer Dome Project, approximately 140km south of Kalgoorlie in Western Australia.

All material regulatory approvals, licences and permits are in place for the commencement of mining activities.

Pioneer also advises that the appointed mining contractor, Hampton Transport Services (“Hampton”), is preparing to mobilise to the Sinclair Mine in readiness for the commencement of mining operations.

The Sinclair Mine is poised to become Australia’s first commercial caesium ore (pollucite) producer.

Mining Contractor Mobilising 

Hampton has commenced mobilisation preparations with the load and haul fleet expected on-site in early September. Mining is expected to take approximately four months with the shipping of crushed pollucite ore to Cabot Corporation under the binding Offtake Agreement (ASX release, 20 June 2018) to commence in January 2019.

Pioneer Managing Director David Crook said;

“Another major milestone has been reached for the Sinclair Mine with the commencement of Site preparation works setting up access to the open pit area to allow the mobilisation to site by Hampton, our mining contractor, as we continue to advance rapidly towards the commencement of Australia’s first commercial caesium mining operation.”

Click here to view the full announcement


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