Manuka Resources (ASX:MKR) is set to revitalize its operations in the Cobar Basin with a 10-year mine plan focused on the Wonawinta Silver Mine and Mt Boppy Gold Mine. The plan aims to produce 13.2 million ounces of silver and a gold credit from existing stockpiles and open pits, utilizing the existing 1Mtpa Wonawinta Processing Plant. Production is slated to commence in Q1 2026, targeting an average EBITDA of A$22 million per annum at an average cost of A$35/oz silver, resulting in an NPV of A$101 million and an IRR of 109%.
The mine plan is underpinned by an updated Wonawinta Silver Reserve of 6.2Mt at 56g/t Ag (in-ground) and 0.2Mt at 60g/t Ag and 0.07g/t Au in ROM Stockpiles, plus a maiden Mt Boppy Gold Reserve of 0.2Mt at 1.1g/t Au. Pre-production capital/restart costs are estimated at A$18.9 million, including A$10.3 million for a deslime circuit to enhance mill throughput and leach performance.
Manuka is in advanced discussions with financiers to refinance existing debt and fund project capital, with current lender TransAsia extending the debt facility maturity to facilitate the process. The Wonawinta processing plant is strategically located within trucking distance of various high-grade precious and base metals deposits, providing significant commercial opportunities. The project forecasts average EBITDA of A$22M p.a. at an all-in sustaining cost of A$35/oz Silver, yielding an NPV of A$101M and an IRR of 109%.
Executive Chairman Dennis Karp emphasized leveraging existing processing plant and past experience to de-risk project execution and capitalize on buoyant precious metals markets. The company plans to continue talks with financiers to refinance debt and make a Final Investment Decision in Q3 2025. Silver and gold prices of A$50/oz and A$5,000/oz respectively have been used for the base case financial evaluation. The company’s financial advisors, BurnVoir Corporate Finance, are assisting with the refinancing process and to a Final Investment Decision.
