Manuka Resources: Aiming for multi-year gold production to commence in June Quarter
March 22, 2023
Key Points
- Consistent with our recent Strategic Exploration Review[i], Manuka is recommencing Mt Boppy gold production, with a build-up targeting approximately 25koz per year Au for ~3 years;
- Preliminary evaluation has shown economic viability of treating a screened product at the Wonawinta plant, which stands ready to begin gold production; The programme underpins a ~3 year gold production scenario targeting 15-25koz per year, beginning in early April 2023;
- Bulk sampling for grade evaluation of the Mt Boppy waste rock dumps has been initiated, supporting positive metallurgical tests that have confirmed the amenability to cyanidation of the screened product;
- Manuka’s gold production strategy includes a number of measures to prolong mine life/increase annual production:
- Exploration programmes to underpin the development of a number of small opencast deposits;
- Re-entry into the Mt Boppy open cut scheduled for later 2023 subject to finalisation of economic mine planning to produce up to 45koz Au (included in current JORC resource[ii]) beneath the base of the pit;
- Recovery of 3-4koz Au in broken ore at the base of the pit;
- Mt Boppy Deeps drilling for the evaluation of an underground mine development is planned to start during H2 2023;
- Silver production has been deferred in favour of gold production, which yields far superior economics at the current Au/Ag price ratio.
About Manuka Resources Limited
Manuka Resources Limited (ASX: MKR) is an Australian mining and exploration company with key assets located in the Cobar Basin, central west New South Wales. In addition to its recent acquisition of Trans-Tasman Resources Limited owner of the Taranaki VTM Project, it is the 100% owner of two fully permitted mining projects, one gold and one silver, both within the Cobar Basin, which include the following:
- Gold - Mt Boppy Gold mine and neighbouring tenements, hosting an existing open pit resource[iii] of 281,850 tonnes grading 4.95g/t gold, based on a cut-off grade of 1.6g/t for material within its current open pit design and a cut-off grade of 3.0g/t for material below the current pit design. The Mt Boppy project having ceased current open pit mining activities in Q4 2021, is in advanced exploration as additional exploration is conducted beneath the pit floor and nearby prospects. In addition, Manuka has identified a number of stockpiles and tailings deposits which are being evaluated for economic processing.
- Silver - Wonawinta silver project, with mine, processing plant and neighbouring tenements, hosting 51 million ounces of silver in a JORC resource[iv] grading 42g/t silver at a cut-off grade of 20g/t silver. The Wonawinta processing plant has a nameplate capacity of >850,000 tonnes per year. The Company has recently completed a plant and metallurgical recovery optimisation.
There exists a number of highly prospective base metals exploration targets on Manuka’s ~1,150km2 tenement package within the Cobar Basin.
The Taranaki VTM Iron Sand Project recently released its maiden vanadium resource[v] which ranks it as one of the largest drilled vanadium projects globally. The Project has a granted mining licence and is in the lowest quartile of the iron ore production cost curve5. The Company awaits Environmental Approval before completing its Bankable Feasibility Study.
This announcement has been approved for release by the Board of Manuka Resources Limited.
For further information contact:
Dennis Karp
Executive Chairman
Manuka Resources Limited
0412 268 114
Media Contact
Angela East
M+C Partners
0428 432 025
Manuka Resources Limited
Level 4 Grafton Bond Building, 201 Kent St Sydney NSW Australia 2000
ABN 80 611 963 225
tel +612 7253 2020
Important Information
This report includes forward-looking statements and comments about future events, including the Company’s expectations about the performance of its businesses. Forward-looking words such as “expect”, “should”, “could”, “may”, “predict”, “plan”, “will”, “believe”, “forecast”, “estimate”, “target” or other similar expressions are intended to identify forward-looking statements. Such statements involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company and which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. Forward-looking statements are provided as a general guide only and should not be relied on as an indication or guarantee of future performance. Given these uncertainties, recipients are cautioned to not place undue reliance on any forward-looking statement. Subject to any continuing obligations under applicable law, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this report to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statement is based. No Limited Party or any other person makes any representation, or gives any assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in the report will occur.
[i] ASX Release 14 February 2023
[ii] ASX release 29 July 2022
[iii] Ibid
[iv] ASX release 1 April 2021
[v] ASX release 1 March 2023
