REG - Nativo Resources Plc - Operational Update: Tesoro Gold Mine

Nativo ResourcesAnnouncement

21/10/2024 07:00

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RNS Number : 8552I  Nativo Resources Plc  21 October 2024

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

21 October 2024

 

Nativo Resources Plc

("Nativo" or the "Company")

 

Operational Update: Tesoro Gold Mine

Initial vein material recovered from Bonanza shaft yields high grade assay
results up to 27g/t

Nativo Resources plc (LON:NTVO), which has interests in precious metals mining
and production in Peru, provides the following update on the Tesoro Gold
Concession ("Tesoro"), in southern Peru, which is held by the Company's
50%-owned Peruvian joint venture, Boku Resources SAC ("Boku").

Boku continues with the mine development plan in preparation for production
and has now increased operations at the Bonanza mine's first shaft ("Bonanza")
to three shifts per day, which has seen progress accelerate. The principal
shaft now extends to over 22m in depth, following closely the orientation of
the Bonanza vein. The northwest and southeast sub level galleries, at 10m
depth, have been developed and currently extend horizontally to over 14m to
the NW and 20m to the SE, following the strike of the vein system
respectively.

In keeping with the heterogeneous development of the mineralised vein, which
pinches and swells both horizontally and vertically as is common for
mesothermal quartz vein gold deposits, the mine development plan has been
optimised for preparation of future multiple blocks, with each block averaging
20m long by 20m in height. The Company expects the optimised plan will both
accelerate, and ultimately increase production. The revision means each block
is estimated to contain 172t of vein material, with the first block in
preparation expected to average grades of between 6g/t to 12g/t Au with some
areas of the block reaching 27g/t.

Boku now believes that the gold oxidation zones could extend to up to 200m in
depth, with a neighbouring ASM operation extending to over 150m vertically,
meaning there could be potential for six to eight vertical blocks per
horizontal gallery at Bonanza. However, any such development of the mine to
this depth would require upgrading and mechanisation of mine infrastructure to
facilitate clean air circulation and the movement of people and rock material.

Vein material brought to surface as part of mine preparations undertaken in
September and October, measured over 22t after sorting. This material is
derived from the preparation of the shaft and galleries and does not represent
what will be achieved during the "production phase". The recovered material
has been analysed at a local metallurgical laboratory (Minares SAC), with the
results yielding an average grade of between 6g/t and 12g/t Au and maximum
results returning over 27g/t for the bulk samples.

The vein material recovered so far will be stockpiled at the central camp
until we finalise terms with a local producer, most likely once we establish
steady production in December.

Initial revenue will be reinvested to accelerate mine development and optimise
gold production.

Looking ahead, Boku plans to increase again the number of shifts working at
Bonanza from three to six, accelerating mine development and scaling
production volumes, potentially achieving between 8t and 12t of vein material
per day. The current development plan includes deepening the principal shaft
and opening a second, then third shaft at Bonanza, followed by opening a
second mine at La Dorada. The development at La Dorada will be similar to
Bonanza.

Across Tesoro, Boku has identified three further vein corridors for ASM mining
operations. The veins have existing ASM shafts, which have been sampled and
analysed, returning results with high-grade gold concentrations, similar to
Bonanza and La Dorada. These vein corridors are mapped to extend for up to 1km
each and can be exploited with multiple shafts, i.e., similar to the mining
plan for Bonanza and La Dorada.

The overall development plan for the concession forecasts achieving an
aggregated daily production rate, across all operations, of between 38.5t and
64t per day of vein material by December 2025.

As announced on 13 September 2024, the Company plans to scale gold production,
establish a gold ore processing plant for its own and third party vein
material, and, in the medium-term, to expand its operations to the
exploitation of gold rich tailings deposits.

 

Stephen Birrell, Chief Executive Officer of Nativo, commented:

"Tesoro continues to be an extremely exciting project for Nativo. I am pleased
to report on high-grade assay results of initial vein material recovered from
Bonanza, with findings demonstrating impressive grades of up to 27g/t.

We look forward to working with Boku to accelerate mine development operations
and increase production capacity, which will be supported by the reinvestment
of expected revenues from gold sales."

 

For further information please contact:

 Nativo Resources                           Via Vigo Consulting

 Stephen Birrell, Chief Executive Officer   nativo@vigoconsulting.com (mailto:nativo@vigoconsulting.com)

 Zeus (Nominated Adviser and Joint Broker)  Tel: +44 (0)20 3829 5000

 James Joyce

 James Bavister

 Isaac Hooper

 Peterhouse Capital limited (Joint Broker)  Tel: +44 (0)20 7469 0930

 Duncan Vasey

 Lucy Williams

Rose Greensmith

 Vigo Consulting (Investor Relations)       Tel: +44 (0)20 7390 0234

 Ben Simons                                 nativo@vigoconsulting.com (mailto:nativo@vigoconsulting.com)

 Peter Jacob

Anna Sutton

 

About Nativo Resources plc

 

Following the partial divestment of its assets in Argentina, Nativo entered
into a 50:50 joint venture in Peru in July 2024 with an experienced local
partner for precious metals (gold/silver) mining and processing of gold ore
(own and third party production) and the cleaning of known tailings deposits
containing Measured and Indicated resources of gold and silver. Through the
JV, known as Boku Resources, Nativo has secured an opportunity to scale
operations in Peru, owning 50% of the production and resources.

 

Initially, Boku is establishing formalised artisanal and small mining
operations on its 100% held Tesoro Gold concession, southern Peru, targeting
early cash flow generation by Q4 2024. The Company plans to establish its own
gold ore processing plant and, longer-term, to pursue its low capex strategies
to appraise and exploit tailings deposits to recover gold, and develop the Ana
Lucia Polymetallic concession.

 

Qualified Persons Statement

The scientific and technical information contained within this announcement
has been reviewed and approved by Dr Alberto Rios Carranza, a geologist with
over 27 years' experience, who holds a doctorate cum laude awarded by the
Polytechnical University of Madrid, Spain and who has published or co-authored
over 17 scientific papers on the mineralisation across Peru. Alberto is a
member of the Geological Society of Peru, the Colombian Society of Geology and
the Institute of Mining Engineers of Peru. He is a Qualified Person as defined
by the AIM Guidance Note on Mining and Oil & Gas Companies dated June
2009.

 

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Glossary

 

 Au   gold
 ASM  Artisanal and small mining

 g/t  grams per tonne

 Km   kilometers

 m    meters
 t    tonnes

 

 

 

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