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(Sharecast News) - Nativo Resources said on Thursday that it has signed final contracts to manage, complete and operate the part-built La Patona Gold Ore Processing Plant in southern Peru, with construction and commissioning targeted for the second half of 2026 at an estimated cost of $1.8m.
The AIM-traded company said it had secured agreements with the owner of the plant, located around 45 kilometres from its Tesoro Gold Concession in Acari, granting it, via its wholly owned Peruvian subsidiary, the right to manage, design, complete and operate the facility using existing permits.
Negotiations took longer than anticipated, delaying the start of site works by up to 15 weeks.
The 15-hectare processing plant would be developed as a dual circuit flotation and cyanidation operation incorporating a smelter to produce gold dor bars.
Phase 1 was designed for a total solids throughput of 220 tonnes per day, with the flotation circuit operating in series with a 70 tonnes per day cyanidation circuit and a pull ratio of 15 to maximise recovery.
Based on refined metallurgical plans and expected head grades of up to five grams of gold per tonne for flotation and a blended 23 to 25 grams per tonne gold for cyanidation, Nativo said the plant at full capacity was expected to recover between 1.4 and 1.7 kilograms of gold per day, subject to sufficient feedstock.
The design would allow for potential future expansion and throughput scale-up.
A specialist contractor would undertake the engineering, procurement and construction works, with three potential EPC contracts under consideration.
The firm said it would update the market once a contractor was appointed.
On-site metallurgy and assaying would be carried out in a purpose-built laboratory, including assaying of third-party ore.
Bernardino Alegra Aragn, Nativo's processing engineer, would oversee construction, commissioning and operations once the EPC contractor was selected.
The board said he would bring more than 30 years' experience in mineral processing engineering, having held senior roles with groups including Ausenco, FLSmidth, B2Gold and First Quantum Minerals.
Chief executive Stephen Birrell said the company was encouraged by progress at the plant and had "full confidence that the next phase of work will be expertly led by Bernardino Alegra Aragn", adding that the project represented "a compelling opportunity, particularly in light of the strong global demand for gold."
At 1121 GMT, shares in Nativo Resources were down 3.88% at 0.5p.
Reporting by Josh White for Sharecast.com.