Nativo Resources Secures Tailing Deposit Opportunity in Peru

Nativo Resources has acquired the option to assess the Toma la Mano tailing deposit in Peru for potential reprocessing of materials. Involved in a partnership with Boku Resources, the company aims to reduce environmental liabilities. A recent share consolidation has led to a short-term decline in share price despite strategic growth opportunities in the region.

Nativo Resources, listed on the London Stock Exchange (LON: NTVO), has secured an option to evaluate the reprocessing potential of the Toma la Mano tailing deposit in Peru. The company is collaborating with its local partner, Boku Resources, which holds a 50% stake and will conduct a technical evaluation within three years. The agreement aims to process tailings and alleviate environmental liabilities associated with past mining activities.

The Toma la Mano tailing deposit, located in central Peru, is reported to contain approximately 1.8 million tonnes of tailings, exhibiting gold concentrations ranging from 0.1 g/t to 1.7 g/t, and silver concentrations between 10 g/t and 37 g/t. Validation of these figures is necessary before determining a formal resource estimate.

Nativo Resources is exploring other tailings projects in Peru, providing potential income opportunities for local communities while addressing environmental concerns at a lower processing cost compared to traditional mining. Furthermore, Nativo is already established in the region with its involvement in the Bonanza gold mine, which has recently commenced gold production.

The company’s share price has experienced a decline following a recent consolidation of shares at a ratio of 1,500 existing shares into one new share. The board anticipated that this measure would stabilize the share price, although it has led to a short-term decline. Prior to the consolidation, shares were valued at 2.25 pence, but have since decreased by 6.94% to approximately 1.675 pence, reflecting a 25% decline over six days.

While the share price may take additional time to stabilize, investors are encouraged to monitor Nativo Resources due to its possible advancement and further project opportunities in Peru.

In summary, Nativo Resources is positioning itself to capitalize on the reprocessing of the Toma la Mano tailing deposit while exploring additional projects in Peru. Despite the recent decline in share price following a consolidation aimed at greater stability, the company’s involvement in local mining and environmental remediation holds potential for recovery and growth in the future.

Original Source: ukinvestormagazine.co.uk