Pioneer holds a large geographically focused gold and nickel tenement portfolio, and benefits from supporting infrastructure, with a primary focus on projects within 75 kilometres of Kalgoorlie Boulder.
Notably, Pioneer is well funded with $6.4 million in net cash and receivables (December Quarter 2012) which enables Pioneer to fund exploration at the company's Kalgoorlie and Fraser Range based projects. The $6.4 million in cash equates to $0.012 per share. With Pioneer last trading at $0.029 - for a market cap. of $15 million - the company is therefore leveraged to any exploration success.
Share Price: $0.029
Issued Shares: 510 million
Market Cap.: $15 million
Cash: $6.4 million in net cash and receivables (December 2012)
EV: $8.6 million
KEY INVESTMENT POINTS:
- Kalgoorlie focused
- Additional Fraser Range exposure
- Supporting infrastructure
- Strong funding position
- Experienced management
Craig McGown - Chairman. An investment banker with over 35 years' experience consulting to companies in Australia and internationally, particularly in the natural resources sector. The former Chairman of DJ Carmichael and currently with New Holland Capital.
David Crook - Managing Director. Founding Managing Director since 2003. A geologist with over 30 years' experience in the mining industry, including senior exploration, mining and management roles with a number of Australian and international companies. 20 years' experience in the Kalgoorlie District.
Allan Trench - Non-Executive Director. A mineral economist, geophysicist and business management consultant. Professor CET at UWA and Curtin Graduate Business School. Perth representative CRU Strategies.
Wayne Spilsbury - Non-Executive Director. A geologist with over 35 years of experience including 28 years with Teck Cominco Limited - former General Manager, Exploration - Asia Pacific. Has worked on gold and base metal projects in Western Canada, the United States, Asia and Australia.
2012: STRATEGIC ACHIEVEMENTS
As part of Pioneer's regrouping in 2012, the company achieved significant goals highlighted by the sale of the Western Mt Jewell project for $8 million cash. The company identified replacement projects - which it achieved through internal exploration and by acquisitions.
Pioneer recently acquired (75%) of the Wildcard Fairwater Project, which covers an extensive 1,422 square kilometres of tenements in the Albany-Fraser Province of Western Australia - and is located around 100 kilometres from Sirius Resources' (ASX: SIR) recent Nova and Bollinger discoveries.
Near term news from the Wildcard project will include the results of an airborne geophysical survey (VTEM max) over nickel sulphide targets.
Worth noting there are nickel anomalies adjacent to the Archaean-Proterozoic structural contact, and also a gold anomaly in the Archaean - with substantial additional ground pegged.
Picture: Pioneer's Wildcard is 100kms from Nova and Bollinger.
Acra Gold Project:
Pioneer moved to 100% of the gold rights for the strategically very important Acra Gold Project, which has scale to be a 'company-maker'. The project has a 20 kilometre long zone of gold targets, coincident with large structures.
The Project consists of anomalies confirmed by modern geochemistry, clusters of older drill holes that intersected gold, and nugget patches. The next drilling is about to start at the Jubilee East Prospect, a 4 kilometres long target, where the first program of air-core drilling returned 15 metres at 17g/t gold (see announcement January 2013).
Acra is Pioneer's priority gold project for 2013. It is worth stressing that previous 'large budget' explorers have all focussed on nickel during the past 20 years at Acra. Pioneer is the first modern explorer to hold the amalgamated project with a primary focus on gold.
Picture: Acra Gold Project.
Golden Ridge Gold and Nickel Project:
Not to be forgotten the other major accomplishment during 2012 included moving to 100% of the Golden Ridge Gold and Nickel Project, which is located just 20 kilometres from Kalgoorlie, which is well-supported by infrastructure.
Golden Ridge is highly prospective and has four advancing nickel targets which include Norton, Blair South, Anomaly 11 and Duplex Hill. Partly tested gold targets are Flying Squirrel, Gold Star, Flying Ant, Goat and Mick's Hill.
Adding further to the projects credentials, neighbouring tenements include the Superpit (Barrick-Normandy), New Celebration (Alacia), Golden Ridge (McPherson's Reward) and the Daisy Milano Gold mines (owned by Silver Lake Resources (ASX: SLR)).
Golden Ridge provides advanced gold targets, with Phase 1 of 10,000 metres drilled in October 2012. Hole GRB0205 delivered: 15 metres at 1.60g/t gold, including 6 metres at 3.49g/t gold. The results confirmed and extended targets.
Picture: Drilling at Golden Ridge
2013: THE WAY AHEAD
In the June quarter 2013, Pioneer is planning to be a very active explorer, which includes drilling and geophysics at the Acra Gold Project, along with drilling at the Golden Ridge Gold and Nickel Project.
Pioneer also plans to conduct exploration at the Fairwater Project in the Albany-Fraser Province, which will begin with soil analysis and then be followed by EM work.
Pioneer has significant cash reserves to conduct an exploration program in a world-class gold and nickel province in Western Australia.
The $6.4 million in net cash and receivables (December 2012) equates to $0.012 per share.
The company last traded at $0.029 - for a market cap. of $15 million - and the company is therefore leveraged to any exploration success. This provides for an Enterprise Value of just $9 million.
Pioneer is currently active at the Acra and Golden Ridge Projects, and importantly has a pipeline of subordinate prospects.
With near term news from exploration from its gold projects, along with airborne geophysical survey (VTEM max) results over nickel sulphide targets from Wildcard in the Albany-Fraser Province - the current valuation is attractive with an upcoming exploration program and strong news flow.
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