Manuka Resources Limited (ASX: MKR) has provided an update on its Cobar Basin silver and gold production strategy, including the restart of the Wonawinta processing plant. Manuka Resources is focused on its 100%-owned silver and gold assets located in the Cobar Basin. The company is advancing plans to bring the Wonawinta processing plant back into production.
Independent technical and legal due diligence has been completed and provided to prospective financiers. Manuka has received term sheets from multiple parties for refinancing existing debt and funding the restart of the Wonawinta Silver Mine. The company is 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 gold, to augment the Cobar Basin production plan.
The company notes that silver and gold prices remain strong, increasing the NPV of the Cobar Basin Production Plan to A$153 million. This figure reflects revised commodity price assumptions, with no changes to the physical parameters or operating cost structure of the project. Manuka aims to reach binding terms on a financing facility early in the third quarter and bring Wonawinta back into production in the new year.
Executive Chairman Dennis Karp commented that productive discussions are ongoing with prospective funders for their development strategy. The company is confident of securing a financing facility in the upcoming quarter and looks forward to providing further updates on financing progress and the Cobar Basin production strategy. The company also aims to report on the result of the re-optimisation and reassessment of the Mt Boppy Gold Mine open pit cut back during the upcoming quarter.
