SHARES in the rebadged Pioneer Resources jumped over 70% today on gold hits from its Lignum Dam project in Western Australia.
Shares in the Perth-based explorer jumped from 3.4c to a high of 6.6c, before settling back to 5.8c by close of trade.
The first reverse circulation drilling program at the Lignum project returned a number of high-grade gold intersections. The company said six holes were drilled on two traverses at the Tregurtha prospect and five holes returned decent grades of gold mineralisation.
Best hits included 11m at 5.63 grams per tonne gold from 40m, including 4m at 13.37gpt, and 19m at 5.56gpt from 52m, including 7m at 12.53gpt.
Pioneer managing director David Crook said he was pleased that drilling at the project, 55km from Kalgoorlie, had returned results so quickly.
The company last month changed its name from Pioneer Nickel to reflect its expanded focus on a broader commodity base, including gold.
PIO Price at posting:
5.5¢ Sentiment: Hold Disclosure: Held
