Echo Energy PLC (AIM:ECHO) fell over 14% on Friday morning after updating on progress at its joint-owned Tesoro gold project in Peru.
Development of the ‘Bonanza’ vein has begun, Echo said Friday, for which mapping shows average widths of between 0.15 and 0.20 metres, making it the richer of the two systems at the site.
Some material has already been milled from this and sent to an independent laboratory to assess gold grades, with results expected early next month.
Echo added plans were in place to mine two blocks in the vein system, which are expected to begin within the next 15 weeks.
Some 13,000 kilograms of material has so far been taken from the vein during preparations, with Echo noting this would be sold for funds to further develop Tesoro.
Shares fell 14.3% on Friday.