Nativo Resources PLC (AIM:NTVO, FRA:A3Z) shares shot up 22% in Monday's early dealing, rising to 0.38p, after it told investors that its Tesoro gold concession in southern Peru could host up to 195,434 ounces of contained gold.
It comes as the explorer published a maiden JORC-compliant Exploration Target across four vein systems at the project. The target covers the Bonanza, Tesoro, Tesoro_1 and Morrocota veins and spans 79,051 to 316,200 tonnes of material, with estimated contained gold ranging from 6,686 to 195,434 ounces.
The bulk of the upside sits in the Tesoro vein, which carries a target of 40,800 to 163,200 tonnes at grades of 4.89 to 31.6 grams per tonne, equivalent to 6,415 to 165,824 ounces of gold. Nativo said a total of 6,200 metres of outcropping vein has been mapped across the concession.
Chief executive Stephen Birrell said the target marked “an important step” in understanding Tesoro’s high-grade vein systems and provided a framework for the next phase of appraisal aimed at defining a JORC-compliant Mineral Resource Estimate.
The company cautioned that the Exploration Target is conceptual, based on limited data, and should not be treated as an indication of economic viability. Nativo’s nearest-term objective is to scale operations at Tesoro, with a focus on the Bonanza and Morrocota mines.