Can Manuka Resources Unlock Mt Boppy’s Gold Potential to Boost Cobar Basin Revival?

Financing Momentum Builds for Wonawinta Restart

Manuka Resources Limited (ASX, MKR) has taken significant strides toward reviving its silver and gold operations in the prolific Cobar Basin. The company has completed independent technical and legal due diligence, a critical step in securing funding to refinance existing debt and restart the Wonawinta processing plant. Multiple term sheets have been received from prospective financiers, signaling strong market interest in backing the project.

The planned restart of the Wonawinta plant, which processes approximately 1 million tonnes per annum, is targeted for the first quarter of 2026. The capital expenditure required is estimated at A$18.9 million. At a conservative silver price of A$50 per ounce and an all-in sustaining cost of A$35 per ounce, the project is forecast to deliver an average annual EBITDA of A$22 million, with an impressive internal rate of return (IRR) of 109% and a net present value (NPV) of A$101 million.

Cobar Basin Production Plan Enhanced by Current Market Prices

Manuka’s updated 10-year production plan encompasses mining and processing 10.7 million tonnes containing 19.2 million ounces of silver, supplemented by gold credits. The plan is underpinned by 61% reserves, providing a robust foundation for production forecasts. Notably, current spot prices for silver and gold have increased the NPV of the Cobar Basin production plan to A$153 million, reflecting the project’s enhanced economic potential amid a favourable commodities market.

Mt Boppy Gold Mine Cut-Back Study Could Add Significant Value

In parallel with financing efforts, Manuka is assessing the feasibility of a cut-back at the Mt Boppy Gold Mine, located 50 kilometres east of Cobar. This open pit contains a mineral resource of 0.4 million tonnes at 4.23 grams per tonne gold, equating to approximately 53,500 ounces of gold. Historically one of New South Wales’ richest gold mines, Mt Boppy’s in-ground resource remains open at depth and along strike, suggesting further upside potential.

The company halted production at Mt Boppy in 2021 due to pit flooding and wall instability caused by severe weather. The current re-optimisation study aims to determine if the open pit can be safely and economically expanded to recover this high-grade gold resource. If successful, the cut-back would augment the Cobar Basin production plan and add significant value to Manuka’s portfolio.

Strategic Shareholding Moves and Next Steps

Manuka also announced that security shares held by GAM Company Pty Ltd have been acquired by prominent investor and existing shareholder Antanas Guoga, with associated convertible notes extinguished. This move may strengthen shareholder support as the company advances its development strategy.

Looking ahead, Manuka aims to finalise binding financing terms early in the third quarter of 2025 and provide an update on the Mt Boppy cut-back feasibility study in the upcoming quarter. These developments will be critical in shaping the company’s trajectory as it seeks to capitalise on strong precious metals markets and operational assets in the Cobar Basin.