Pioneer Resources (ASX: PIO) has completed a 1,200 metre rotary air blast drilling program at the Juglah Dome Gold Project in Western Australia and is expecting to receive the results within a week.
These are the company’s first drill holes into the new gold project, which is located some 5 kilometres southeast of Integra Mining’s (ASX: IGR) Majestic Gold Deposit, which has intersected 49 metres at 7.89 grams per tonne (g/t) of gold from 63 metres, including 11 metres at 23g/t.
Exploration will begin again in the first quarter of 2012, and will initially comprise:
- 10,000 metres of rotary air blast drilling to test five Juglah Dome gold prospects; - 15,000 metres of rotary air blast drilling to test gold targets within the Mt Jewell Gold Project, including three new Hillsborough prospects; and - Diamond core drilling and column-leach testing for the Tregurtha and Hughes Prospects.
Earlier this month, Pioneer announced it had raised A$1.5 million through the placement of 60 million shares at $0.025 per share to continue exploration and feasibility activities for its Mt Jewell Gold Project, also in Western Australia.
Funds will also be used for inaugural drilling programs for the Juglah Dome Gold Project and for other targets that may produce the next significant gold discovery.
Part two of the capital raising is a share purchase plan to raise a further $1 million under which existing shareholders may acquire up to $15,000 (up to 600,000) of ordinary shares at $0.025 per share.
PIO Price at posting:
2.9¢ Sentiment: LT Buy Disclosure: Held
