Nativo Resources (LON: NTVO) has secured an option to evaluate the potential to reprocess the Toma la Mano tailing deposit and there are other potential tailings projects in Peru. The share price continues to decline following the share consolidation.
The agreement is via the local, 50%-owned partner Boku Resources, which has three-years to produce a technical evaluation. The nearby mine produced silver, copper, lead and zinc. Nativo Resources would process the tailings and help to remove the environmental liability
The Toma la Mano tailing deposit is in central Peru. Records suggest that the tailings deposit has 1.8Mt of tailings with 0.1g/t-1.7g/t of gold and 10g/t-37g/t of silver. These will have to be verified before a resource estimate can be calculated.
AIM-quoted Nativo Resources could do further deals for other tailings deposits in Peru, where the local communities can generate income and get rid of a potentially costly environmental liability. The processing will be much lower cost than mining the metals.
Via Boku Resources, Nativo Resources is already involved in the Bonanza gold mine in Peru, and it has produced its first gold.
The share price continues to decline following the consolidation of 1,500 existing shares into one new share. The board believed that this would help to make the share price less volatile. They may still be true in the longer-term, but it was always likely to lead to a short-term dip in the price.
The consolidated share price on the day before the consolidation was 2.25p and it has declined since then. Today, the share price has fallen a further 6.94% to 1.675p. That means that the share price has fallen by one-quarter over the past six days.
The share price may take a little longer to settle down, but the shares are worth keeping an eye on because of the potential for further progress with deals in Peru.