Mt Boppy Gold Project Faces Funding and Geotechnical Hurdles Despite Strong Economics

Mt Boppy’s Revival Adds Significant Gold to Manuka’s Portfolio

Manuka Resources Limited (ASX – MKR) has reasserted its confidence in the Mt Boppy Open Pit project by confirming a maiden Probable Ore Reserve of 290,000 tonnes grading 4.2 grams per tonne gold, translating to approximately 39,000 ounces of gold. This addition bolsters Manuka’s Cobar Basin production strategy, which already includes significant silver and gold resources.

The Mt Boppy mine, historically one of New South Wales’ richest gold producers, has been the subject of a comprehensive pre-feasibility study. This study evaluated the feasibility of a cutback to the existing open pit to access higher-grade resources beneath the pit floor. The results are promising, with the project delivering a pre-tax net present value (NPV8) of A$43.2 million and an internal rate of return (IRR) of 64%, underscoring its economic viability.

Integration with Wonawinta and Operational Plans

Ore mined from Mt Boppy will be transported approximately 150 kilometres to Manuka’s existing Wonawinta Processing Plant, where it will be processed alongside silver-bearing ore from nearby open pits. This integrated approach leverages existing infrastructure, reducing capital expenditure and operational complexity.

The mining plan anticipates an initial mining rate of 4.5 million tonnes per annum, focusing first on waste removal before transitioning to high-grade ore extraction. The project includes detailed operational considerations such as pit dewatering, geotechnical slope management, and haulage logistics, reflecting a mature planning stage.

Robust Technical and Environmental Foundations

The Ore Reserve declaration follows rigorous technical assessments, including updated mineral resource estimates, metallurgical test work, and environmental approvals. The resource model is supported by extensive drilling data and sampling, with classification under the JORC Code (2012 Edition) standards. Environmental management plans address the handling of potentially acid-forming waste rock, ensuring compliance with regulatory requirements and community expectations.

Manuka holds all necessary mining leases and approvals, with a Native Title Agreement in place, and notes no sensitive land classifications within the project area. Infrastructure at Mt Boppy includes grid power, water supply, accommodation, and workshop facilities, with planned upgrades to support the cutback project.

Financial Flexibility and Exploration Upside

Manuka’s Executive Chairman Dennis Karp highlighted the company’s flexibility in funding the Mt Boppy cutback, whether through free cash flow from Wonawinta operations, debt financing, or joint venture arrangements. The company recently announced an A$8 million underwritten entitlement offer and is progressing toward securing a finance facility to support the restart of Wonawinta.

Beyond the immediate Ore Reserve, exploration efforts are targeting near-pit and greenfield high-grade mineralisation, with geological models suggesting multiple mineralised pods within the structural corridor. This exploration upside could further enhance the value and longevity of Manuka’s Cobar Basin assets.