Pioneer Resources (ASX:PIO) has intersected more high grade gold drilling at Acra, just 60 kilometres north east of Kalgoorlie, including 11 metres grading 3.77g/t gold and 3 metres grading 5.44g/t gold.
With this, Pioneer's shares we believe should open stronger this morning, following on from earlier high grade hits mid year.
The new holes were drilled at Kalpini South along strike from earlier high grade gold drill hits in April that included: 10 metres at 6.38g/t gold from just 61 metres depth and 9 metres at 5.31g/t gold.
High grade gold has now been found over 100 metres of strike at Acra, and mineralisation is still open in all directions which bodes well for future exploration and resource definition.
Adding spice is that the high grade gold intersections to date have been found at a range of depths at Acra, which could yield a number of gold deposits, handily located to mining infrastructure nearby.
In fact, gold has been intersected from 61 metres to 128 metres in depth.
Next steps
This will include a drill out of Kalpini South, while drilling at Carmina South will define the orientation of mineralisation.
While at Mountain Maid, first drill holes will be completed; and at Jubilee East, where drilling will test for mineralisation continuity.
Analysis
These results are promising on top of the drill results in April at Kalpini South at Acra. The range of depths that gold was encountered at is also significant.
Significant intersections of gold mineralisation within fresh rock like the 11 metres at 3.77g/t gold intersection from 94 metres are along the road to identify commercial tonnages of gold ore at depth.
Now Pioneer only acquired the gold rights for the Acra in January this year, and has come up with the results from specifically exploring the project for gold with the benefit of these datasets.
Pioneer is also nicely cashed up for ongoing exploration with $3.8 million at September 30, which includes a receivable of $1.2 million due in March 2014. Against a Market Cap. of circa $9 million this places a value on its Acra gold project, Golden Ridge gold and nickel project and Fairwater nickel and gold project of a very undemanding $5.2 milion.
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