Manuka’s $101M NPV Plan Targets 13.2 Million Ounces Silver Over 10 Years

Strategic Production Plan for Cobar Basin

Manuka Resources Limited (ASX: MKR) has laid out an ambitious 10-year mine plan for its Wonawinta Silver Mine and Mt Boppy Gold Mine, both located within the prolific Cobar Basin in New South Wales. The plan aims to produce a combined 13.2 million ounces of silver, supplemented by valuable gold credits, by processing existing stockpiles and mining open pits using the Wonawinta processing plant.

The company intends to restart production in early 2026, initially focusing on reclaiming and processing ore from stockpiles at both sites before commencing mining operations mid-year. This approach leverages Manuka’s existing infrastructure, including a 1Mtpa carbon-in-leach (CIL) processing plant at Wonawinta, which will be upgraded with a new deslime circuit to improve throughput and metal recoveries.

Robust Financial Outlook and Capital Investment

Financially, the project is forecast to generate an average EBITDA of A$22 million per annum at an all-in sustaining cost of A$35 per ounce of silver. The net present value (NPV) at an 8% discount rate stands at A$101 million, with an internal rate of return (IRR) of 109%, reflecting strong project economics underpinned by current precious metals prices.

The capital expenditure required to bring the plant back into production is estimated at A$18.9 million, including A$10.3 million dedicated to installing the deslime circuit and other plant refurbishments. Additional tailings dam lifts and sustaining capital are budgeted to support the 10.7 million tonnes of ore planned for processing over the mine life.

Resource and Reserve Base Supporting the Plan

The mine plan is supported by updated ore reserves and mineral resources. Wonawinta’s in-ground reserves total 6.2 million tonnes grading 56.4 g/t silver, complemented by 0.2 million tonnes of stockpiled ore at 60 g/t silver and 0.07 g/t gold. Mt Boppy contributes maiden reserves of 0.2 million tonnes at 1.1 g/t gold from stockpiles and tailings. The combined resource base includes measured, indicated, and inferred categories, with a cautious approach to inferred resources due to their lower geological confidence.

Importantly, previous processing trials at Wonawinta demonstrated a consistent gold credit of approximately 0.23 ounces of gold per ounce of silver, which has not yet been fully factored into the mine plan economics, representing potential upside to cash flows.

Operational and Environmental Readiness

Manuka plans to operate a day-night mining roster with a fleet of excavators and trucks sufficient to meet production targets. The processing plant upgrades include modular crushers, log washers, and hydrocyclones to optimize ore preparation and recovery. The company has also engaged environmental consultants and maintains all necessary approvals for mining, processing, and tailings management, with ongoing work to finalize tailings dam lift designs and rehabilitation plans.

Regional infrastructure and workforce availability are favorable, with accommodation facilities at both Wonawinta and Mt Boppy camps ready to support the anticipated increase in personnel.

Financing and Next Steps

Manuka is in advanced discussions with TransAsia Capital Private Limited and other financiers to refinance its existing debt facility and secure funding for the plant upgrade and restart. The company has secured an extension on its current facility to allow sufficient time to complete refinancing. BurnVoir Corporate Finance is advising on the process, with a final investment decision targeted for the third quarter of 2025.

The staged commissioning of the processing plant is scheduled to begin in the second half of 2025, with steady production expected from January 2026. The company’s strategic positioning within the Cobar Basin and the ability to process both silver and gold ores through a single facility provide significant optionality for future growth and value creation.