Nativo Resources has secured an option to evaluate the Toma la Mano tailings deposit in Peru, alongside exploring other projects. The share price has dropped following a recent consolidation. The agreement with Boku Resources facilitates a three-year technical evaluation. Potential environmental liabilities could be addressed through processing the tailings, which may be less costly than traditional mining.
Nativo Resources (LON: NTVO) has recently obtained an option to assess the reprocessing potential of the Toma la Mano tailings deposit in Peru, alongside exploring other tailings projects in the region. Despite the recent share consolidation, the company’s share price continues to decline, reflecting investor uncertainty.
The agreement with Boku Resources, a local partner in which Nativo holds a 50% stake, grants a three-year period for producing a comprehensive technical evaluation of the tailings. The Toma la Mano site, known for its previous output of silver, copper, lead, and zinc, has the potential to mitigate environmental liabilities through tailings processing.
Located in central Peru, the Toma la Mano tailings deposit is reported to contain approximately 1.8 million tonnes of tailings, with gold concentrations ranging from 0.1g/t to 1.7g/t, and silver concentrations from 10g/t to 37g/t. Validation of these figures will be necessary before any formal resource estimation can occur.
Nativo Resources may engage in additional agreements for other tailings deposits throughout Peru, offering local communities a chance for income generation while alleviating environmental concerns. The cost efficiency of processing tailings is expected to be significantly lower than traditional mining methods.
Currently, through Boku Resources, Nativo is also involved in the Bonanza gold mine, wherein the company has successfully produced its initial gold. However, the company’s share price remains under pressure following a consolidation event that converted 1,500 existing shares into one new share, leading to increased volatility.
Prior to the consolidation, the share price was 2.25p; it has since witnessed a decline of 6.94%, dropping to 1.675p, marking a one-quarter decrease over six days. Although a stabilization period is anticipated, investors are advised to monitor developments closely, particularly given the ongoing potential for new deals in Peru.
In summary, Nativo Resources is strategically positioned to evaluate and potentially reprocess tailings in Peru, specifically at the Toma la Mano site. The partnership with Boku Resources presents opportunities for additional projects, although recent share price volatility poses challenges. Investors should remain vigilant about the company’s future prospects as Nativo navigates through these developments in the Peruvian mining sector.
Original Source: ukinvestormagazine.co.uk
