Nativo Resources has gained an option for reprocessing the Toma la Mano tailing deposit in Peru and may evaluate additional projects. The share price has declined following a consolidation, which aimed to stabilize its volatility. Ongoing activities indicate potential for future progress in the region.
Nativo Resources (LON: NTVO) has obtained an option to assess the reprocessing feasibility of the Toma la Mano tailing deposit. Additional tailings projects in Peru may also be explored. The company’s share price has seen a continued decline following a recent share consolidation.
The option agreement is established through Nativo’s 50%-owned partner, Boku Resources, which is tasked with producing a technical evaluation within three years. The nearby mine has historically yielded silver, copper, lead, and zinc, while Nativo aims to process tailings and mitigate environmental liabilities associated with them.
Located in central Peru, the Toma la Mano tailing deposit is reported to contain 1.8 million tonnes of tailings, with gold grades ranging from 0.1g/t to 1.7g/t and silver grades between 10g/t to 37g/t. Verification of these figures is required before any official resource estimate can be conducted.
Nativo Resources holds the potential to secure additional tailings deposits in Peru, benefiting local communities while alleviating costly environmental issues. Processing tailings presents a lower-cost alternative to traditional metal mining.
Through Boku Resources, Nativo is also working with the Bonanza gold mine in Peru, where it has successfully produced its initial gold. However, the share price continues to decline, influenced by the consolidation of 1,500 existing shares into one, intended to stabilize volatility in the long run.
Since the consolidation’s announcement, the share price dropped from 2.25p to 1.675p, reflecting a 6.94% decrease in value. In total, shares have lost about a quarter of their value over six days. While short-term fluctuations are expected, Nativo’s ongoing activities in Peru warrant close monitoring for potential future developments.
Nativo Resources has secured an option to evaluate the Toma la Mano tailings deposit and may explore further opportunities in Peru while addressing environmental concerns. Its share price has been affected by a recent consolidation, reflecting a significant short-term decline. Despite these challenges, the company’s ongoing projects present potential for growth and community benefits.
Original Source: ukinvestormagazine.co.uk
