Manuka Resources (ASX: MKR) is set to recommence production at its Wonawinta processing plant in the Cobar Basin, NSW, targeting Q1 2026. This initiative aims to capitalize on buoyant gold and silver markets. The production plan envisions extracting 13.2 million ounces of silver, alongside gold credits, from existing resources and stockpiles. The company plans to process 10.7 million tonnes of ore over a 10-year mine life, including 6.6 million tonnes of reserves. An initial capital investment of A$18.9 million will fund a 6-month refurbishment, including a deslime and dewatering circuit to enhance the plant’s throughput and leaching performance.
Manuka plans to blend gold ore from Mt Boppy stockpiles with silver ore during the initial two years to boost revenue. Average all-in sustaining costs (AISC) are projected at A$35 per silver ounce. Financial forecasts estimate an average annual EBITDA of A$22 million, with an NPV of A$101 million and an IRR of 109%.
In addition to its Cobar Basin activities, Manuka is advancing its Taranaki VTM project in New Zealand, a significant vanadium-rich iron sands resource. A pre-feasibility study completed in March 2025 highlights a US$1.26 billion NPV and a 39% IRR. The company is also seeking fast-track approvals in New Zealand for this project, which is deemed nationally significant. This project is designed to produce 4.9Mtpa of 56-57%Fe, inclusive of Vanadium and Titanium co-products.
Manuka’s strategy focuses on restarting near-term precious metal production in the Cobar Basin, while simultaneously progressing the Taranaki VTM project. These dual initiatives aim to create long-term, sustainable value for shareholders.
