Manuka Resources (ASX: $MKR) announces near-term gold and silver production targets

Manuka Resources Limited (ASX: $MKR) has announced its plans to target near-term gold and silver production from its Cobar Basin projects. The company, which is the 100% owner of the Mt Boppy Gold Mine and Wonawinta Silver Mine, aims to establish on-site processing at Mt Boppy and update Reserves at Wonawinta to support its production goals.

Executive Commentary on Near-Term Production Targets

Mt Boppy has historically been one of the richest gold mines in New South Wales, having produced circa 500,000oz of Gold at 15 g/t. Indeed, since acquiring Mt Boppy in June 2019, production performance has largely exceeded our initial forecasts, notwithstanding the fact that we have processed Mt Boppy ore through the Wonawinta Processing Plant. Our decision to transition to on-site processing at Mt Boppy will increase operational flexibility and deliver lower operating costs. We estimate that the savings in ore haulage alone will be in the order of A$6-7 million per year. The step-change in cost base supports a robust business case for the continued near-term processing of gold bearing rock dumps and tailings and deliver cashflows to fund aggressive brownfields exploration at Mt Boppy and at near-mine prospects such as Pipeline Ridge. With gold and silver markets buoyant, we are excited by the immediate opportunity to re-establish ourselves as an ASX precious metals producer in the Cobar Basin, whilst progressing in parallel the development of our world-class Taranaki VTM Iron Sands Project in New Zealand.

Summary of Manuka Resources' Announcement

Manuka Resources Limited (ASX: $MKR) is targeting near-term gold and silver production from its Cobar Basin projects. The company plans to establish on-site processing at Mt Boppy, with the aim of enhancing operational flexibility and reducing operating costs. The capital cost of the on-site processing facilities is estimated to be in the order of A$10-15M, with installation, commissioning, and gold dore production expected to commence in calendar Q4 2024. Additionally, an updated Reserve and production plan for the Wonawinta Silver Mine is targeted for release in May 2024. Manuka's ambitions include aggressive brownfields exploration at Mt Boppy and near-mine prospects, while also progressing the development of the Taranaki VTM Iron Sands Project in New Zealand. The company is excited about the immediate opportunity to re-establish itself as an ASX precious metals producer in the Cobar Basin, given the buoyant gold and silver markets.