Manuka Resources Limited (ASX:MKR) has provided an update on its Cobar Basin silver and gold production strategy, including the planned restart of the Wonawinta processing plant. Manuka Resources is an Australian mining company focused on silver and gold projects. The company’s primary focus is the Cobar Basin in central New South Wales.
Independent technical and legal due diligence has been completed and provided to prospective financiers. The company has received term sheets from multiple parties regarding refinancing existing debt and funding the Wonawinta Silver Mine restart. The company is currently evaluating these offers, aiming to finalise binding terms for a financing facility early in the third quarter of this year. Current silver and gold spot prices have increased the net present value (NPV) of the Cobar Basin production plan to A$153 million.
Manuka is also assessing the feasibility of a cut-back of the Mt Boppy open pit, which has a mineral resource of 0.4Mt at 4.23g/t Au for 53.5koz of gold. This assessment aims to potentially augment and add significant value to the Cobar Basin Production Plan. The Mt Boppy Gold Mine, historically one of New South Wales’ richest gold mines, is located 50km east of Cobar. The company aims to report on the result of the re-optimisation and reassessment of Mt Boppy Gold Mine open pit cut back during the upcoming quarter.
Executive Chairman Dennis Karp stated that the company has moved rapidly to enter discussions with potential funders following the release of their updated Cobar Basin production plan. He expressed confidence in securing a financing facility in the coming quarter and bringing Wonawinta back into production in the new year. Karp added that the Mt Boppy Gold Mine cut-back opportunity presents a potentially high-margin gold operation.
