LONDON (Alliance News) - Hunter Resources PLC saw its share price fall almost 10% Wednesday, despite saying it has started its Phase 1 exploration programme at the Pampamali project in Peru and first drilling is expected to commence by year end.
Hunter Resources shares were down 9.8% Wednesday early afternoon, trading at 1.15 pence.
The company had its shares suspended in December last year after it had failed to make a significant investment within the required timeframe after becoming an AIM investment company, but it was re-admitted to AIM in July after it completed the acquisition of Gold Hunter SAC, a company focused on developing high-grade gold, silver and base metal projects in Peru.
Pampamali is Gold Hunter's first project in Peru where it has the right to acquire up to an 80% interest. The Pampamali project consists of eight exploration concessions with a total area of 3,500 hectares and is located in central Peru.
In a statement Wednesday, Hunter Resources said it has seen encouraging results from its initial review and analysis of historical exploration work on the Pampamali project, and some zones identified high grade potential.
The company said a large number of additional mineralised veins have been identified from the mapping of the property by Gold Hunter, and these areas will be further mapped and sampled during the upcoming field programme.
"The excellent results from the initial review of this historical data on Pampamali helps fast track our exploration programme as well as our understanding of the controls and known mineralisation all of which will assist in identifying our first stage drilling target," said Executive Chairman Simon Hunt in a statement.
The company said drilling is targeted to commence by year end.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
