REG - Nativo Resources Plc - Operational Updates

Nativo ResourcesAnnouncement

22/05/2025 07:00

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RNS Number : 6588J  Nativo Resources Plc  22 May 2025

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.

 

22 May 2025

 

Nativo Resources Plc

 

("Nativo" or the "Company")

 

Operational Updates

Nativo Resources plc (LON:NTVO), which has interests in gold mines in Peru, is
pleased to provide the following operational updates.

 

Bonanza and Morrocota gold mines

 

The pause in operations earlier this year (as announced on 18 February 2025)
at the Bonanza Gold Mine on the Tesoro Gold Concession, following extreme
weather conditions, has provided an opportunity for the Company to optimise
the mine plan with a view to improving productivity and grades when mining
resumes.

 

As part of this process, an engineering and geological contract has been
awarded to Inveritas Global Holdings ("IGH"), a leading engineering and
geological consultancy in Peru. IGH is well-established in the mining sector
and specialises in providing comprehensive solutions and outsourcing of
employees to mining projects across Peru and internationally.

 

The contract deliverables include an audit of work to date, a mine-based
estimate of resources for the Bonanza and Morrocota mines, and a mine plan for
restarting commercial production at Bonanza and initiating commercial
production at Morrocota.

 

Subject to the near-term completion of these workstreams, the Company intends
to engage a contract mining firm to optimise operational costs and maximise
daily mining tonnages. Considering these steps, the Company is targeting the
restarting of operations at Bonanza in July and commencing operations at
Morrocota from August. A further announcement will be made once the contract
has been awarded.

 

Gold ore processing plant

 

As announced on 14 October 2024, the Company, via its 50%-owned Peruvian joint
venture Boku Resources SAC ("Boku"), has secured permits for the establishment
and operation of its own gold ore processing plant ("La Patona Project") and
entered into an option agreement with the landholder for use of its land.
Management has since reviewed and reduced the capital requirements and
timescales for the La Patona Project, with the revised plan estimated to take
five months and cost $500,000. If commissioned, the plant will enable the
Company to reduce logistics costs and retain a higher margin from production,
whilst also offering the opportunity to scale the plant and process third
party vein material from other artisanal miners, unlocking additional
cashflow.

 

Toma la Mano tailings project

 

As announced on 6 March 2025, Boku has secured an option agreement to evaluate
the opportunity to recover and sell gold and silver from the Toma La Mano
tailings dump and redeposit the tailings in line with legislation - the first
of several similar identified tailings dumps. Following a request for tender,
feasibility study proposals have now been submitted, and management expects to
award a contract in June. This will include a resource estimate, detailed
metallurgical analysis to report on recovery rates and process optimisation.

 

Stephen Birrell, Chief Executive Officer, commented:

 

"Having got Bonanza up and running in December, it was disappointing to have
had to pause activity in February, effectively foregoing half a year of cash
flow development. This has however catalysed an improved, more cost-effective
road map for our mining operations. This should allow us to resume activity in
July with a lower cost, higher margin operation, and bring the neighbouring
Morrocota mine on stream with the same approach, benefitting from economies of
scale.

 

In parallel, we're making good engineering progress on the planned gold ore
processing plant, for which we have materially reduced the cost and
build-time. We also look forward to awarding a feasibility study contract on
our first tailings project very soon.

 

Being an early-stage junior mining company is not without its challenges, but
we are overcoming those one by one, putting the building blocks in place to
create value from gold and silver mining and processing activities in Peru,
supported by highly favourable commodity prices."

 

For further information please contact:

 Nativo Resources                                   Via Vigo Consulting

 Stephen Birrell, Chief Executive Officer           nativo@vigoconsulting.com (mailto:nativo@vigoconsulting.com)
 Zeus Capital (Nominated Adviser and Joint Broker)

 James Joyce                                        Tel: +44 (0)20 3829 5000

 James Bavister
 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

 

Nativo has interests in gold mining and exploration projects in Peru.

 

Through a 50:50 joint venture established in July 2024 with an experienced
local partner ("Boku"), Nativo secured an opportunity to scale operations at
the Tesoro Gold Concession, owning 50% of the production and resources.
Production and sales of ore to a local gold ore processing plant began in late
December 2024.

 

In March 2025, Nativo acquired directly a 100% interest in the Morrocota Gold
Mine, proximal to the Tesoro Gold Concession.

 

Longer-term, the Company plans to establish its own gold ore processing plant
to retain a higher margin from production at its mines.

 

In March 2025, Boku also secured an option agreement to evaluate the
opportunity to recover and sell gold and silver from the Toma La Mano tailings
dump in the Ancash region and redeposit the tailings in line with legislation.
The Company is investigating other similar regional tailings opportunities.

 

Follow us on social media:

 

LinkedIn: https://uk.linkedin.com/company/nativoresources-plc
(https://uk.linkedin.com/company/nativoresources-plc)

X: https://x.com/nativoresources (https://x.com/nativoresources)

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