Pioneer Resources encounters pegmatite in first holes at recently discovered Dome North

Pioneer Resources’ (ASX: PIO) maiden drilling program is now underway at the Dome North area of its Pioneer Dome project, with initial holes encountering pegmatite where outcrop rock chips returned up to 3.70% lithium.

At target two, the first hole hit pegmatite down dip of where 17 rock chips assayed between 1.65% lithium and 3.70% lithium.

Pegmatite was intersected from 175m down hole with mineralisation continuing 136m until the hole terminated at 311m.

However, Pioneer noted that the hole was angled, and the apparent huge width was “exaggerated”.

Two more holes were also drilled from a different angle and according to Pioneer, provided a better indication of the pegmatite’s true width.

In the following two holes, pegmatite widths ranged from 5m up to 29m.

The company noted indications of spodumene mineralisation were present in all pegmatites it intersected.

Pioneer managing director David Crook said the company was “excited” with what it has observed in the first few drill holes of its current program.

Pioneer Dome project

Last month, Pioneer revealed the results of a rock chip sampling program at two targets within the North Dome area.

At target one, which is about 200m long, seven rock chips assayed between 1.40% and 1.99% lithium. Meanwhile, at target two, rock chip assays ranged from 1.65% to 3.70% lithium across 300m of strike.

A further two targets at the prospect revealed rock chip assays between 1.53% and 2.63% lithium.

Pioneer owns 100% of the Pioneer Dome project, which is about 130km south of Kalgoorlie and in proximity to requisite infrastructure including rail, gas, water and the Goldfields to Esperance highway.

According to Pioneer, the project is located within the region’s growing lithium corridor, which now hosts several lithium operations including Galaxy Resources’ (ASX: GXY) Mt Cattlin mine, Alita Resources’ (ASX: A40) Bald Hill operation, and Gangfeng and Mineral Resources’ (ASX: MIN) Mt Marion asset.

In addition to its prospectivity for lithium, the project hosts the Sinclair caesium mine, which has been operating since December last year.

During the June quarter, about 19,000t of pollucite ore was extracted from the stage one open pit with an average grade of 9.1% caesium oxide.

Today’s news pushed Pioneer’s share price up more than 26% to trade at $0.019 by midday.