Echo Energy PLC on Friday said that Boku Resources SAC has initiated the development of the primary Bonanza vein of the Tesoro Gold Concession in southern Peru.

The Latin America-focused exploration company, which formerly operated under the name Nativo Resources, operates the Tesoro Gold Concession under a 50%-owned joint venture with Boku Resources.

The Bonanza vein is deemed the richer of the two mapped veins, both of which have been mapped at surface and in discrete shafts, down to circa 10 metres. The second vein is called Dorada.

Some vein material recovered from the shaft development has been milled and panned at the site, which has demonstrated the presence of gold. Samples of the material have been sent to an independent certified laboratory to quantify gold grade, with results expected in early October.

Chief Executive Officer Stephen Birrell said: ‘I have just returned from a very successful visit to the Tesoro Mine, meeting with the mine manager, mining engineer and miners. Progress in ’preparing the mine to mine’ is on track, and we are looking forward to Boku receiving early revenue from the ore recovered during the shaft preparation process. We also took the opportunity to meet with our joint venture partners at Boku and held meetings on further potential projects under discussion.’

To date, miners have recovered a 13,000 kilogram bulk sample of vein material, which will be sold to a commercial processor. The proceeds will be used to further develop Tesoro.

Shares in Echo Energy were down 14% at 0.0030 pence each in London on Friday afternoon.

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