Manuka Projects 13.2Moz Silver, 35koz Gold with 1,092% IRR in Updated PFS

Robust Economics Drive Renewed Confidence

Manuka Resources Limited (ASX, MKR) has delivered a compelling update to its Cobar Basin projects, highlighting a significant increase in project value with a Pre-Feasibility Study (PFS) that forecasts an NPV8 of A$805 million and an extraordinary internal rate of return (IRR) of 1,092%. These figures are based on conservative assumptions of US$95 per ounce for silver and US$4,800 per ounce for gold, well below current spot prices, underscoring the project's resilience and upside potential.

The 10-year mine plan encompasses production from both the Wonawinta Silver Mine and the Mt Boppy Gold Mine, aiming to extract 13.2 million ounces of silver and 35,000 ounces of gold. This production will be sourced from existing stockpiles and open pits, leveraging the company’s existing 1Mtpa carbon-in-leach (CIL) processing plant with modest capital expenditure upgrades.

Operational Readiness and Funding in Place

Manuka is poised to recommence processing at Wonawinta in the first half of 2026, with plant upgrades focused on installing a new desliming circuit to address previous operational bottlenecks caused by fine clays. This upgrade is expected to enhance throughput and metal recoveries, particularly silver, while maintaining low operating costs. The mine plan forecasts an average EBITDA of A$127 million per annum at a C1 cost of A$34.4 per ounce of silver, inclusive of gold credits.

Financially, the company has raised A$15 million in October 2025 and is finalising a binding agreement for a US$22.5 million debt facility with Nebari Natural Resources Credit Fund. This funding package is designed to fully support the project through to production and profitability, mitigating execution risk and positioning Manuka as a well-capitalised junior miner.

Strategic Positioning in the Cobar Basin

The Wonawinta processing plant is a strategic asset within trucking distance of multiple high-grade precious and base metal deposits in the prolific Cobar Basin. This offers Manuka significant commercial optionality, including the potential to process ore from nearby stranded deposits that lack standalone processing infrastructure. The company’s ongoing exploration drilling at Mt Boppy targets extensions to historically high-grade gold mineralisation, with assay results expected in the current quarter.

Importantly, Manuka remains fully unhedged, providing shareholders with direct leverage to any further appreciation in precious metals prices. The mine plan also incorporates a conservative approach by excluding potential gold credits from Wonawinta open pit ore, which could represent upside to project cash flows if realised.

Environmental and Regulatory Compliance

Both Wonawinta and Mt Boppy operate under existing mining leases with current environmental and development approvals in place. Recent environmental audits confirm that the sites are maintained with low risk to the environment, and ongoing compliance efforts are focused on administrative improvements. The company has planned tailings storage facility lifts and infrastructure upgrades aligned with the mine plan, ensuring sustainable operations.

Manuka’s approach to waste rock management, particularly potentially acid-forming material at Mt Boppy, demonstrates a proactive stance on environmental stewardship, with designated emplacement and capping strategies to mitigate risks.

Looking Ahead

With a clear implementation schedule targeting financial close and final investment decision in Q1 2026, Manuka aims to be in production by late Q2 2026. The company’s strategy to blend stockpiled silver and gold ores, coupled with processing plant upgrades, sets a foundation for robust cash flow generation. Further exploration success and resource conversion could extend mine life and enhance project economics, while ongoing optimisation of mining and processing operations may improve margins.