Nativo Resources has acquired an option to assess the Toma la Mano tailing deposit in Peru, focusing on reprocessing for environmental safety. Despite a decline in share prices post-consolidation, the company is poised for potential future projects and has established partnerships to enhance its mining activities.
Nativo Resources (LON: NTVO) has obtained an option to evaluate the reprocessing of the Toma la Mano tailing deposit, alongside other potential tailings projects in Peru. This development occurs amidst a decline in the company’s share price following a share consolidation effort intended to stabilize volatility.
The agreement involves a local partner, Boku Resources, which holds 50% stake and is tasked with producing a technical evaluation within three years. The Toma la Mano deposit, located in central Peru, historically yielded silver, copper, lead, and zinc, hence Nativo Resources aims to reprocess these tailings while addressing environmental liabilities.
Records indicate that the Toma la Mano tailing deposit consists of approximately 1.8 million tonnes of tailings, with gold content ranging from 0.1g/t to 1.7g/t and silver content from 10g/t to 37g/t. Verification of these records is essential prior to establishing a resource estimate. Additionally, there are possibilities for Nativo Resources to pursue other tailings deposits in Peru, which could aid local communities in generating income and mitigating environmental concerns.
As part of its activities via Boku Resources, Nativo Resources is also currently engaged with the Bonanza gold mine in Peru, where it has successfully produced its first gold. The share consolidation involved converting 1,500 existing shares into a single new share, initially set to reduce volatility, though this has resulted in short-term price dips.
The pre-consolidation share price stood at 2.25 pence and has since decreased by about 6.94%, currently priced at 1.675 pence. It represents a decline of approximately 25% over the last six days. While the share price may need time to stabilize, the potential for Nativo Resources to forge additional agreements in Peru warrants close observation.
In summary, Nativo Resources has secured a promising opportunity to evaluate the reprocessing of the Toma la Mano tailing deposit, marking significant progress in managing environmental liabilities while potentially aiding local communities economically. Despite the recent decline in share prices due to consolidation efforts, the company has the infrastructure and partnerships in place to pursue further developments within Peru’s resource sector.
Original Source: ukinvestormagazine.co.uk
