Nativo Resources (LSE:NTVO) has resumed underground operations at its Bonanza gold mine in Peru, quickly encountering gold-bearing vein material within the first six metres of new development. Work is currently focused on a high-confidence target area within the Tesoro concession, where the company has begun selectively extracting and stockpiling mineralised rock to support near-term gold recovery.
Mining activities are being carried out by contractors Kuboc and Frasser, who are progressing narrow-vein development using high-precision techniques. The operation has achieved a 100% Half-Cast factor, a result that reduces dilution and helps maintain cost-efficient extraction. Early results from a structured sampling programme show a grade distribution weighted toward higher values, lending support to Nativo’s geological model and helping guide resource planning and the anticipated production ramp-up at Bonanza.
The company’s outlook remains constrained by weak financial fundamentals, including ongoing losses, negative equity, relatively high leverage compared with asset levels, and continued cash burn. Technical indicators provide some support following a strong short-term price rebound, though momentum appears stretched and the share price remains below the 200-day moving average. Valuation metrics also remain unfavourable due to negative earnings and the absence of dividend support.
More about Nativo Resources
Nativo Resources is a London-listed gold company focused on developing near-term mining and processing opportunities in Peru. Its strategy centres on primary gold mining, gold ore processing and tailings reprocessing, with growth expected from expanding operations on the Tesoro Gold Concession, including the Bonanza and Morrocota mines.
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