Manuka Resources has accelerated its transition to production at the Wonawinta Processing Plant, boosting its silver ore reserve by 28% and gearing up for gold and silver output starting mid-August 2026.
- 28% increase in Wonawinta Probable Ore Reserve to 7.9Mt containing 12.8Moz silver
- Final US$4 million drawdown secured under Nebari senior debt facility
- Over 50,000 tonnes of Mt Boppy gold ore stockpiled for imminent processing
- Initial Pipeline Ridge drilling completed; assay results expected late August
- Gold production expected mid-August, silver production to follow in October
Wonawinta Ore Reserve Expansion Strengthens Production Outlook
Manuka Resources (ASX:MKR) has significantly bolstered its silver production profile with a 28% increase in the Wonawinta Probable Ore Reserve, now standing at 7.9 million tonnes containing 12.8 million ounces of silver. This upgrade, announced post-quarter end, enhances confidence in the company’s imminent restart of precious metals production at its flagship Wonawinta Processing Plant.
The reserve boost complements the broader 51 million ounce Mineral Resource, underscoring Manuka’s strategy to become Australia’s largest primary silver producer. The Ore Reserve upgrade also supports a more robust production plan as the company moves from development to operational status.
Refurbishment and Equipment Delivery Drive Operational Readiness
During the June quarter, Manuka made substantial headway on refurbishing and commissioning the Wonawinta Processing Plant, a 1.0Mtpa carbon-in-leach facility designed for dual silver and gold streams. Key upgrades include newly fabricated crushing and deslime circuits sourced from South Africa, with shipments commenced in July and installation scheduled for the September quarter.
The deslime circuit upgrade is expected to enhance throughput and metallurgical performance by removing clay-rich materials before milling, a critical improvement for plant efficiency. Meanwhile, camp upgrades, workforce mobilisation, and site expansions have supported operational readiness, positioning Manuka for a smooth transition into production.
Mt Boppy Gold Ore Stockpiling and Early Production Plans
Manuka has hauled over 50,000 tonnes of gold-bearing ore from the Mt Boppy Gold Project to Wonawinta, establishing stockpiles in preparation for processing. This ore will underpin initial gold production expected to commence by mid-August 2026, ahead of silver production slated for October.
The Mt Boppy project remains a cornerstone of Manuka’s production strategy, providing early operating cashflow as the company ramps up. Recent sonic drilling on the Mt Boppy Main Waste Dump has yielded assay results still being validated, with final data expected in the September quarter to refine the production plan.
Pipeline Ridge Drilling Progress and Exploration Potential
Manuka completed an initial 3,133-metre reverse circulation drilling program at the Pipeline Ridge Gold Project during the quarter, targeting shallow oxide gold mineralisation suitable for open pit mining. Assay results are pending, with completion expected by late August 2026. The project holds an exploration target of 187,000 to 365,000 tonnes grading between 1.1 and 1.5 grams per tonne gold, though it remains uncertain if this will translate into a defined Mineral Resource.
Pipeline Ridge offers a potential near-term source of gold ore feed to the Wonawinta plant, which would increase production flexibility and extend mine life. The company continues to evaluate this and other exploration opportunities within its extensive Cobar Basin portfolio to support a multi-source precious metals production hub.
Financial Position and Funding Secured for Restart
Manuka secured the final US$4 million tranche of its US$30 million senior secured debt facility from Nebari Natural Resources Credit Fund II LP during the quarter, completing the funding required to restart the Wonawinta plant. As part of this, 8.2 million warrants were issued to Nebari, bringing its total warrant holdings to over 44 million.
The company ended the quarter with A$7.8 million in cash, total borrowings of A$52.5 million, and A$5 million in unused financing facilities. Quarterly expenditure focused on plant refurbishment, workforce mobilisation, and infrastructure upgrades, aligning with the company’s transition from care and maintenance to production and cashflow generation.
Strategic Outlook and Operational Milestones Ahead
Despite some equipment delivery delays pushing back recommissioning timelines, Manuka remains on track to commence sustained gold production in mid-August, followed by silver output in October. The company’s operational readiness team has expanded across all disciplines, supporting the ramp-up phase.
Manuka also continues to monitor its long-term strategic assets such as the Taranaki VTM Project in New Zealand, where regulatory and permitting pathways are being assessed amid evolving market conditions. Meanwhile, exploration efforts remain focused on extending mine life and maximising the Wonawinta plant’s utilisation through targeted drilling and resource growth initiatives.
Bottom Line?
Manuka’s progress towards production restart is tangible, but upcoming assay results and final plant commissioning will be critical to sustaining momentum and validating resource expansions.
Questions in the middle?
- Will the pending Pipeline Ridge assay results confirm a viable Mineral Resource to diversify ore feed?
- How will equipment delivery and commissioning timelines impact Manuka’s ability to meet its Q3 production targets?
- What strategic options might Manuka pursue to manage debt levels while scaling production?