Ann: MKR Targeting Near-Term Gold and Silver Production in Cobar, page-12

Summary (from https://newsrush.ai/m_50.html)

Manuka Resources Ltd (MKR)

MKR Targeting Near-Term Gold and Silver Production in Cobar

16 April 2024 9:14 AM | 6 Pages

Manuka Resources Limited announces near-term gold and silver production from its Cobar Basin Projects with significant investments and updates.

Summary

• Manuka Resources Limited is targeting near-term gold and silver production from its Mt Boppy Gold Mine and Wonawinta Silver Mine.
• An on-site processing facility for gold production at Mt Boppy is expected to significantly enhance economics, with a capital cost of A$10-15M.
• The Mt Boppy site is fully permitted, with the processing facilities scheduled for Q4 2024.
• An updated Reserve and production plan for the Wonawinta Silver Mine is targeted for release in May 2024.
• The company anticipates savings in ore haulage alone to be around A$6-7 million per year.
• Manuka has increased the gold resource from 31,000 ounces to 160,000 ounces since acquiring Mt Boppy in 2019.

Highlights

• Capital cost for on-site processing facilities
• Savings in ore haulage per year
• Gold resource increase since 2019
• Silver production in 2012-2013
• Silver production in 2022
• Total Resources at Wonawinta
• Installation and production start date for processing facilities
• Updated Reserve and production plan release for Wonawinta

Positives

• Ownership of two significant mining projects in the Cobar Basin.
• Enhanced economics and value from on-site processing facility.
• Fully permitted site for proposed processing plant and on-site production.
• Significant savings in ore haulage costs.
• Increased resource estimate significantly since acquisition.
• Opportunity to leverage buoyant gold and silver markets.

Negatives

• Capital expenditure of A$10-15M required for new processing facilities.
• Operational risks associated with transitioning to on-site processing.
• Dependence on gold and silver market prices for profitability.

Key Dates

• Q4 2024: Installation, commissioning, and production start for the on-site processing facilities at Mt Boppy.
• May 2024: Release of updated Reserve and production plan for Wonawinta Silver Mine.

Alerts

• Contains better than expected results: yes
• Contains worse than expected results: no
• Contains expected results: no
• Sentiment: positive