Manuka Resources (ASX:MKR) has flagged an additional 39,000 ounces of gold to its Cobar Basin production plan, after releasing a maiden open pit ore reserve for the Mt Boppy Mine in New South Wales.
The ore reserve study resulted in a probable ore reserve of 290,000 tonnes @ 4.2g/t gold containing 39,000 ounces of gold. The company says there are potential additional ounces which have been identified in the existing pit wall and in a blasted bench located on the pit floor.
Manuka, which has a market capitalisation of $37.51 million, says the ore mined from the Mt Boppy open pit is proposed to be hauled to and processed at the Wonawinta processing plant along with silver bearing ore mined from open pits located at Wonawinta.
Executive Chairman Dennis Karp says the 39,000 ounces of gold is a “significant” addition to the production strategy, with the company retaining a flexibility to fund the cutback via free cashflow from operations, debt or a joint venture/profit share arrangement.
Mt Boppy’s open pit cutback project, upon execution, is forecast to deliver a pre-tax net present value of $43.2 million and an internal rate of return of 64% to the production plan.
The Cobar Basin production strategy now comprises 19 million ounces of silver and increases to 47,000 ounces of gold.
Mt Boppy was historically one of New South Wales richest gold mines, with an estimated 500,000 ounces of gold mined at 15 grams per tonne gold.
Under Manuka’s ownership, open pit mining at the project restarted between 2020-21, with over 560,000 tonnes of ore at 3g/t gold being mined from the pit and hauled to Wonawinta.
Manuka Resources is a gold and silver-focused company with assets located in the Cobar Basin region of New South Wales. The Cobar Basin hosts some of Australia’s oldest and deepest operating mines and has long been an established mining region with support services and infrastructure to hand.
Write to Aaliyah Rogan at Mining.com.au
Images: Manuka Resources
