February 27, 2012 / 4:23 PM / in 6 years

UPDATE 1-Batero, Trelawney resource estimates disappoint

TORONTO, Feb 27 (Reuters) - Shares of Canadian gold exploration companies Batero and Trelawney Mining were the biggest net losers on the TSX Venture Exchange early on Monday, as new resource estimates from both companies disappointed investors.

Shares of Vancouver-based Batero fell more than 30 percent to C$1.76 after the company reported an initial resource estimate for its 100-percent owned Batero-Quinchia gold project in Colombia.

The company said the project contains over 3.5 million ounces of gold in the indicated category and over 2.5 million ounces in the inferred category.

Batero said it expects to expand its resource through further drilling and it intends to proceed with a preliminary economic assessment on the project.

Separately, Toronto-based Trelawney outlined an updated resource estimate late on Friday for the Cote Lake deposit at its Chester project in northern Ontario.

Desjardins analyst Adam Melnyk cut his price target on Trelawney following the new estimate, arguing that the lower grades outlined in the report tempered the size of the resource increase at the site.

Melnyk lowered his target price on the company to C$5 from C$5.65, in a research note on Monday.

Shares of Trelawney were down almost 18 percent at C$2.45 on Monday morning on the TSX Venture Exchange.

$1=$1 Canadian Reporting By Euan Rocha; editing by Rob Wilson

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