PGR.L Share News (PGR)

AIM-listed explorer Premier Gold Resources slumped on Monday after the group admitted little progress had been made in the Kyrgyz Republic following what it described as a "frustrating" year. In 2013, losses for the year totalled £1.53m, on par with 2012. Cash at the year-end point had risen to £0.27m, up from £0.18m 12 months earlier. The group explained that during the year it had been unable to undertake any activity in the field, which it said was due to "resistance from factions of local groups seeking to hold up the work programme at Cholokkaindy [in Kyrhyz] illegally". It said this was the "result of a fundamental lack of understanding as to the impact that the development of mining operation would have upon local communities". Furthermore, the political disruptions experienced by the Kyrgyz government has slowed down the company's efforts to resolve its local issues. "What is apparent is the extent of the local influence held by the disruptive factions within their community; and indeed the unwillingness of the PanfilovAkim to simply ignore their objections," the group added. "Equally it is apparent that the governor's office is cautious as to the extent to which it exerts political influence over local communities."The group urged shareholders to remind themselves of "the prospective anomalies and structures already recognised at Cholokkaindy, which bear the hallmarks of a substantial gold deposit which would, if developed, be a highly valuable asset". It said the Kyrgyz government had continued to indicate that it was committed to helping the company find a resolution to the problems and favoured an approach of engagement and public dialogue with local communities.The share price fell 41.18% to 0.05p by 13:14.NR