Pioneer has engaged Mining Plus to design a method to extract the high value pollucite mineralisation from the Sinclair Zone. The illustration shows the pollucite (oranges (medium grade) and pinks (high grade)), the proposed adit (green) and initial cross-cuts (blue) from which stopes will be developed.

Drill Hole Collar Locations at the Sinclair Caesium Zone. Pollucite has been intersected in marked holes. Drilling commenced in late April, will test for extensions in both a northerly and southerly direction.

Pioneer 100%

The Pioneer Dome Project is located near Norseman in Western Australia, approximately 130 km south of Kalgoorlie and 200 km north of the Port of Esperance. Access is excellent with the Goldfields Highway and Esperance railway, and water and gas pipelines passing through the Project.

The Company has now accumulated approximately 341 km² of tenements along the 20 km strike length of the eastern periphery of the Pioneer Dome. The Project was recognised as having potential for lithium mineralisation following a review of historic exploration reports which recorded numerous pegmatite intersections in nickel or gold‐focussed drilling completed since the 1960s. The prospectivity model was further enhanced by colloquial records of lepidolite, tantalite and tourmaline in prospector scale workings, which are some of the characteristic minerals of a zoned pegmatites complex. The Project is comprised of six exploration licences plus a mining lease which has been pegged over the Sinclair Caesium Zone. Pioneer Dome is highly prospective for a traditional LCT system - at least 13 clusters of pegmatites have been identified along a 20 km strike length.

LCT pegmatites, thought to be late time intrusions related to s-type granite intrusions, exhibit characteristic zonation of a range of economically important rare-element minerals such as lithium (in spodumene), tantalum, niobium and tin. This same type of pegmatite that hosts the Greenbushes mine, is similar to that intersected in drilling at the Company’s optioned Mavis and Raleigh Lithium Projects (Ontario, Canada); and that which Pioneer is targeting at its 100% held Phillips River, Donnelly and Pioneer Dome Lithium Projects.

Project demonstrates strong potential for the discovery of a significant spodumene deposit and will be a focus for future drilling – such a discovery would be a major value driver.

Pioneer has also made a world class Caesium discovery at the Sinclair Zone within the project area and the development of this deposit is a key focus.

Latest Drill Results

Sinclair High-Grade Caesium Exploration Target

  • PDRC015: 6m at 29.37% Cs₂O from 47m (highest grade of 32.46% Cs₂O from 50m)
  • PDRCD068: 3.85m at 27.78% Cs₂O from 44.35m (highest grade of 29.53% Cs₂O from 46m)
  • PDRCD071: 6.35m at 18.60% Cs₂O from 41.4m (highest grade of 30.37% Cs₂O from 42m)
  • PDRC074: 7m at 17.12% Cs₂O from 49m (highest grade of 25.44% Cs₂O from 54m)
  • PDRC083: 12m at 15.77% Cs₂O from 43m (highest grade of 26.84% Cs₂O from 47m)
  • PDRC084: 4m at 14.53% Cs₂O from 50m (highest grade of 16.20% Cs₂O from 52m)

Predominantly Lithium Alumina-Silicates (likely to include spodumene and/or petalite)

  • PDRC059: 3m at 2.85% Li₂O from 38m (highest grade of 3.18% Li₂O from 38m)
  • PDRC067: 11m at 2.63% Li₂O from 44m (highest grade of 4.59% Li₂O from 46m)
  • PDRC076: 5m at 2.22% Li₂O from 47m (highest grade of 3.01% Li₂O from 51m)
  • PDRC085: 6m at 3.66% Li₂O from 47m (highest grade of 4.42% Li₂O from 51m)
  • PDRC102: 6m at 1.16% Li₂O from 30m

Predominantly Lithium-bearing Sheet Silicates (lithium-muscovite and lepidolite)

  • PDRCD069: 13m at 1.57% Li₂O from 45.25m
  • PDRC070: 12m at 2.2% Li₂O from 44m
  • PDRCD071: 12.95m at 1.81% Li₂O from 43.4m
  • PDRCD072: 8.65m at 3.01% Li₂O from 40m
  • PDRC073: 13m at 2.13% Li₂O from 39m
  • PDRCD075: 13m at 1.49% Li₂O from 46m
  • PDRC077: 13m at 1.89% Li₂O from 52m
  • PDRC079: 14m at 2.32% Li₂O from 46m
  • PDRC082: 11m at 1.86% Li₂O from 53m

Sinclair Zone - Caesium Project

Highlights

  • The Sinclair Zone is a world class Pollucite discovery at the Pioneer Dome Project
  • Pollucite is a rare, high value Caesium mineral
  • The Sinclair Zone is the world’s 3rd largest known pollucite deposit and Pioneer is committed to its rapid development
  • The Company has announced a maiden Mineral Resource for the Resource Statement for Sinclair Zone of: 10,500t of pollucite at 17.1% Cs O in the Measured category (announcement, 22 March 2017)
  • Mining Lease M26/665 application has been pegged
  • Mine planning and Metallurgical testwork underway
  • Extraction of a 5,000t high grade pollucite bulk sample planned for second half of 2017
  • Discussions with potential off-take partners are ongoing
  • Next phase of drilling to commence in the current quarter
  • Pollucite intersections and strong mineralisation vectors remain open or untested north and south of the Sinclair Zone

About Pollucite

Lepidolite Development Strategy

Pioneer has a Farm-in Agreement with Lepidico Ltd (ASX: LPD) to advance the PEG009 Lepidolite target at Pioneer Dome. The Farm-in provides Pioneer with a solution to unlock the Project’s significant potential Lepidolite value. Lepidolite mineralisation from Pioneer Dome has been assessed as being suitable for extraction via Lepidico’s L-Max® process, which produces lithium carbonate directly from lepidolite.

Highlights

  • Pioneer Dome Lepidolite mineralisation produced a high specification battery-grade lithium carbonate grading 99.7% using L-Max® technology
  • L-Max® achieved 93.9% lithium extraction and 93.3% caesium extraction from a flotation concentrate
  • estimated lithium recovery to the final lithium carbonate product of 90%
  • PDRC070: 12m at 2.22% Li₂O from 44m
  • PDRCD072: 8.65m at 3.01% Li₂O from 40m
  • PDRC073: 13m at 2.13% Li₂O from 39m
  • PDRC079: 14m at 2.32% Li₂O from 46m
  • PDRC090: 8m at 2.62% Li₂O from 51m
  • PDRC091: 13m at 2.03% Li₂O from 55m
  • PDRC095: 6m at 2.95% Li₂O from 49m

May 2017