Nativo Resources has acquired an option to evaluate the Toma la Mano tailings deposit for reprocessing and is considering further tailings projects in Peru. The initiative aims to mitigate environmental liabilities while providing local communities with income. However, the company’s share price continues to decline post-consolidation.
Nativo Resources, listed on the London Stock Exchange as LON: NTVO, has obtained an option to assess the possibility of reprocessing the Toma la Mano tailings deposit in Peru, alongside other prospective tailings projects in the region. Despite this opportunity, the company’s stock is experiencing a decline subsequent to a recent share consolidation.
The option agreement is facilitated through Nativo’s 50%-owned partner, Boku Resources, which is expected to complete a technical evaluation within three years. The Toma la Mano deposit, located in central Peru, has historically produced silver, copper, lead, and zinc, and Nativo Resources aims to process the tailings to mitigate environmental liabilities.
Initial records indicate that the Toma la Mano tailings deposit contains approximately 1.8 million tonnes of tailings, with gold grades ranging from 0.1g/t to 1.7g/t and silver grades from 10g/t to 37g/t. However, these figures will necessitate further verification prior to establishing a formal resource estimate.
Additionally, Nativo Resources is exploring further agreements concerning other tailings deposits in Peru, which could provide local communities with income while alleviating potentially significant environmental responsibilities. The cost of processing these tailings is expected to be considerably lower than traditional mining operations.
Nativo Resources, through Boku Resources, is also engaged in the Bonanza gold mine in Peru, where it has successfully produced its first gold. Unfortunately, the company’s share price has declined significantly following the consolidation of 1,500 shares into a single share, a decision intended to stabilize price volatility.
Prior to the consolidation, the consolidated share price was recorded at 2.25p; however, it has since further decreased by 6.94% to 1.675p, reflecting a 25% drop in value over the last six days. It may take time for the share price to stabilize, but investors should monitor developments related to Nativo Resources due to the potential for significant advancements in their projects in Peru.
In summary, Nativo Resources has secured a valuable option for the Toma la Mano tailings project in Peru, presenting potential benefits for both the environment and local communities. The company is committed to addressing environmental liabilities while exploring further contracts in the region. Despite current challenges with share price performance following a consolidation, the company’s initiatives may yield promising outcomes in the future.
Original Source: ukinvestormagazine.co.uk
