Nativo Resources has an option to evaluate the reprocessing of the Toma la Mano tailings deposit in Peru, aided by local partner Boku Resources. The project may alleviate environmental liabilities and generate income for communities. However, share prices have fallen since a recent consolidation, prompting concern, even as other ventures continue to show promise.
Nativo Resources (LON: NTVO) has secured an option to evaluate the reprocessing potential of the Toma la Mano tailings deposit in central Peru, supported by a local partner, Boku Resources, which they own 50%. This agreement permits a three-year period for a comprehensive technical evaluation. The nearby mine has a history of producing silver, copper, lead, and zinc, offering a chance for Nativo Resources to process the tailings while mitigating environmental liabilities.
The Toma la Mano tailings site is estimated to contain 1.8 million tonnes of tailings, yielding gold grades ranging from 0.1g/t to 1.7g/t, and silver from 10g/t to 37g/t. However, these figures must undergo verification before calculating a resource estimate. Nativo Resources also has the potential to pursue additional tailings projects across Peru that could aid local communities economically and address costly environmental concerns.
In addition to the tailings opportunities, Nativo Resources has interests in the Bonanza gold mine, where the company has successfully produced its first gold. Despite these developments, the company’s share price has been on a decline following a consolidation of shares, reducing 1,500 existing shares to one new share. While the board anticipated this consolidation would stabilize the stock price in the long run, it has led to a short-term price drop.
Prior to the consolidation, the share price stood at 2.25p, but has since decreased significantly, closing today at 1.675p, a 6.94% decline. Over the past six days, the share price has decreased by approximately 25%. While the share price may take time to stabilize, the company’s activities in Peru present potential opportunities worth monitoring.
Nativo Resources is actively exploring the reprocessing of the Toma la Mano tailings deposit in Peru, aiming to mitigate environmental liabilities while potentially generating revenue for local communities. Despite ongoing challenges with share price decline due to recent consolidations, the company’s ventures, including the Bonanza gold mine and future tailings projects, suggest a promising outlook for the future.
Original Source: ukinvestormagazine.co.uk
