Manuka Resources Limited (ASX:MKR), owner of the Wonawinta Silver Mine and Mt Boppy Gold Mine in NSW’s Cobar Basin, has announced a maiden open pit ore reserve at its Mt Boppy project. The assessment of the Mt Boppy cutback project has resulted in the statement of a Probable Ore Reserve for the Mt Boppy Open pit of 290kt at 4.2g/t Au containing approximately 39,000oz gold. Mt Boppy was historically one of New South Wales’ richest gold mines with an estimated ~500,000 ounces of gold mined at ~15g/t Au.
The newly defined Probable Ore Reserve is expected to significantly boost Manuka’s Cobar Basin production strategy, which now comprises 19.0 million ounces of silver and increases to 47,000 ounces of gold. The company plans to process the ore mined from the Mt Boppy Open Pit at its existing Wonawinta Processing Plant, alongside silver-bearing ore from Wonawinta open pits. Manuka retains flexibility to fund the cutback via free cashflow from operations, debt or a Joint Venture/Profit Share arrangement.
The Mt Boppy Open Pit cutback project, upon execution, is projected to deliver a pre-tax NPV8 of A$43.2 million and an IRR of 64% to Manuka’s Cobar Basin production plan. The company also sees potential for additional gold ounces within the existing pit wall and a blasted bench on the pit floor. Manuka remains focused on near-pit and greenfields exploration to target high-grade mineralisation.
Manuka also reported that it remains on track to reach binding terms on a finance facility within the current quarter. This facility, along with the recently announced A$8 million underwritten entitlements offer, will support the restart of the Wonawinta mine.
