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Pioneer Resources unveil encouraging drill results at Lignum Dam

Specialist exploration company Pioneer Resources (ASX Code: PIO) has expanded the Lignum Dam Gold Project after encouraging results were received from a drilling program recently completed at its flagship project, located 50km north of Kalgoorlie in Western Australia.

The results continue to confirm the emergence of a sizeable gold discovery, with recent drilling results extending the strike length of the Tregurtha Prospect to approximately 450m.

In addition for the Hughes Prospect, wide‐spaced orientation drilling has expanded the strike length of identified mineralisation to 300m.

Mineralisation at both prospects remains open along respective strike lengths, and at depth.

The December 2009 drilling program saw thirty‐three RC drill holes completed for 3,560 metres. Twenty‐three holes were drilled into the Tregurtha Prospect, and ten into the Hughes Prospect.

Drilling to the south of previously reported mineralisation has extended the strike of the prospect by approximately 130m, with hole LDRC036 returning 5m at 2.41g/t Au from 44m.

Drilling to the north also extended the mineralisation by a further 100m, with holes LDRC043 returning 16m at 1.27g/t Au from 40m and LDRC046 intersecting 1m at 10.30g/t Au from 85m. The mineralisation at Tregurtha remains open to the north with strong alteration and shearing evident in hole LDRC046.

Drill results from the Hughes Prospect located approximately 1km south‐east of Tregurtha returned significant
results including 20m at 2.21g/t Au from 32m in LDRC058 and 24m at 2.13g/t Au from 61m, and 22m at 2.77g/t Au from 88m (including 5m at 5.29g/t Au and 9m at 2.94g/t Au) from LDRC059.

Significant mineralisation has been identified over 300m of strike length based on drill sections 100m apart, and remains open along strike and to the east.

Pioneer Managing Director David Crook said the results were very pleasing and provided further confidence that Lignum Dam was emerging as a substantial gold project.

“The mineralisation at Tregurtha has now been outlined over a 450m strike length and still remains open to the north and at depth below 150m,” Mr Crook said.

“At Hughes we have mineralisation over a strike length of 300m, and it remains open.

"Encouragingly the results from LDRC059 show the potential for the broad zones of higher grade mineralisation as we see at Tregurtha.

"We have every reason to be optimistic about the future of Lignum Dam.”

Mr Crook said that Pioneer’s geologists would finalise the detailed interpretation of the current results and intended to recommence RC and diamond drilling on both prospects by early February.

The next results are expected to be available to the market during March 2010.

Disclosure: The author holds no positions in the company