Manuka turns Wonawinta back on as gold revenues begin

Wonawinta Moves From Recommissioning Into Gold Production

Manuka Resources Limited (ASX/NZX:MKR) has reached the operational milestone its recent capital raising was designed to support: the Wonawinta Processing Plant restarted gold production on 22 August after a five-month recommissioning programme.

During the September quarter, the plant processed 43,270 tonnes of Mt Boppy gold-bearing material at an average head grade of 0.81 grams per tonne. Recovery averaged 72%, leaving approximately 797 ounces of gold in circuit at quarter end. Refinery deliveries began in October, meaning the quarter captures the ramp-up rather than a full period of realised gold sales.

The transition has since accelerated. Manuka said it received its first gold revenues after quarter end, reached full gold processing capacity and had completed its third delivery to the ABC refinery by 29 October. The company also plans to move from an initial fortnightly sales cycle towards weekly gold sales. The earlier Wonawinta gold restart had marked the beginning of the same production ramp-up.

Silver Circuit Remains the Next Operating Test

Gold is the first stage of Manuka’s production strategy, with the company still working towards silver processing at Wonawinta. Installation and integration of the upgraded crushing and silver de-slime circuits continued during the quarter, with commissioning scheduled for early 2027 and combined gold and silver processing expected to follow.

The Wonawinta Probable Ore Reserve stands at 7.9 million tonnes grading 50.4 grams per tonne silver, containing approximately 12.8 million ounces of silver. Manuka said the reserve increased 28% in tonnes and continues to support its planned silver operation, although the production timetable remains dependent on the circuit commissioning process.

Capital Raising Buys Time but Leaves Little Room for Error

Manuka raised A$14.5 million through a placement of 207.1 million shares at A$0.07, followed by approximately A$334,000 through a share purchase plan at the same price. The funds were earmarked for the silver de-slime circuit, plant upgrades and working capital during the production ramp-up. The company attributed the additional funding requirement to higher freight, installation and construction costs and an approximately three-month extension to the original production timetable.

The balance sheet remains the harder number in the report. Manuka held A$581,000 in cash at 30 September, against A$60.1 million of borrowings. The Appendix 5B recorded net operating cash outflows of A$9.74 million and investing outflows of A$10.96 million for the quarter, producing an estimated 0.37 quarters of funding based on cash and stated unused facilities.

There is also a discrepancy within the filing: the financial position section refers to A$4.5 million of unused facilities, while the Appendix 5B lists A$3 million. Manuka said it does not expect the quarter’s operating outflow to continue because operating inflows began in October, and said it currently has the ability to raise more equity, although no further equity-raising steps had been taken since September.

Pipeline Ridge Offers a Possible Second Gold Feed Source

Exploration provides a potential extension to the Wonawinta story. Manuka completed 56 reverse-circulation holes at Pipeline Ridge, with all 3,133 fire assays received, and is now preparing geological modelling and an initial Mineral Resource Estimate. Reported intersections included 32 metres at 7.98 grams per tonne gold from 34 metres, 8 metres at 12.96 grams per tonne from 37 metres and 5 metres at 8.59 grams per tonne from 37 metres.

The earlier Pipeline Ridge drilling results also supported a maiden resource estimate, but Manuka cautioned that the latest intersections are downhole lengths and true widths are not yet known with sufficient confidence. A second phase of drilling to test mineralisation at depth and along strike is planned once preliminary modelling and resource work are complete. Any future ore feed from Pipeline Ridge would also require regulatory approvals.

For now, the immediate test is less geological than operational: whether Wonawinta can sustain throughput, recoveries and regular refinery receipts while Manuka funds the silver commissioning programme. The company’s stated runway assumes the pre-revenue quarter will not repeat, putting the burden on actual October cash receipts and subsequent weekly sales to validate that assumption.