Stellar Resources drops on challenges at Welsh project

Shares in Stellar Resources plunged by a third after the gold explorer said it was facing exploration challenges at its joint venture in north Wales.The stock dropped 0.2p or 33.6% to 0.36p at 16:08 in London after Stellar said an independent technical review by SRK had shown erratically distributed gold grades and low mineralisation continuity at the Dolgellau gold belt licence, which includes the historic Clogau St David's, Gwynfynydd, and Castell Carn Dochan gold mines.The company said exploring, modelling and estimating the gold present would be tough without using different methods of exploration and detailed sampling.It added: "In the light of the large number of regional and local-scale exploration targets generated by this recent review, the company in consultation with SRK is currently developing a detailed exploration programme and budget for 2015 and beyond." Strip Tinning