Protestors stop Salazar’s drills in Ecuador

Salazar Resources (SRL-V) tumbled on the market after protestors ran over its gold and silver exploration operations in Ecuador.

While details of the incident are scant, the company announced that protestors destroyed drill core from three holes, and as a result of the incident, drilling has been halted.

The news sent the Vancouver-based junior down 10% or 29 to $2.61 on roughly 95,000 shares traded.

Salazar says the situation has improved and it could start drilling immediately but instead it will wait roughly three weeks before it does to ease the situation. It has removed its employees from the site to reduce risks of further confrontation.

Protestors weren’t from nearby communities, Salazar says, but from further away.The company, however, was not available for comment, and so the nature of the protestors grievances is not yet known.

Salazar says that it maintains support from over 90% of local community residents.

While its own community development officers are in the field working with stakeholders, it says the government is securing communities near the project and investigating the activities of the protest leaders.

We believe taking a short break at this point in time will be the best strategic decision for the long term success of the project, Salazars president and chief executive Fredy Salazar said in a statement. We have received strong reassurance from our community and with that support we are looking forward to resuming our exploration program in the very near future.”

The company had been in the midst of a 48 hole 9,000 metre drill program at the site. The drill core that was lost from holes 4 through 7 will be made up for by drilling twin holes once the campaign starts.