Rey confident despite tough market debutJune 5, 2006 -...

Rey confident despite tough market debut
June 5, 2006 - 7:26PM

Junior explorer Rey Resources Ltd had a rough first day of trading on the Australian Stock Exchange, but remains confident of the value of its projects in Australia, Chile and Peru.

Shares in the company opened on Monday at 20 cents, down five cents or 20 per cent on its issue price of 25 cents, before ending down 8.5 cents or 34 per cent at 16.5 cents.

But managing director Bruce Preston said Rey Resources' tough introduction to life as a public company was not a great concern.

"It could have been better, I guess, but that's the market," he said.

Mr Preston said there would soon be results coming out of the company's key Fenix copper project in Chile which would be of interest to the market.

Surface mapping at Fenix has identified seven zones of near surface copper mineralisation with grading of up to four per cent copper.

"The exciting thing is that they could all be connected at depth and we could have good sulphide mineralisation," he said.

"That's what they geophysics is telling us."

Rey Resources has two other copper projects in Chile, coal projects in Western Australia and gold tenements in Peru.

The company raised $3.3 million in its initial public offering and now plans to spend $1.5 million on exploration in South America and $800,000 in Western Australia.

Drilling will start at Fenix in July and a second stage drilling program is set to take place at the coal projects at Liveringa in the north west of Western Australia in July or August.

http://www.smh.com.au/news/Business/Rey-co...9359669931.html