Manuka Resources (ASX:MKR) is aiming to restart gold production at its Mt Boppy mine in NSW, Australia in the June quarter, targeting around 25,000oz each year for three years.
Highlights:
Manuka is recommencing Mt Boppy gold production, with a build-up targeting approximately 25koz per year Au for ~three years;
• Preliminary evaluation has shown economic viability of treating a screened product at the Wonawinta plant, which stands ready to begin gold production; The programme underpins a ~three year gold production scenario targeting 15-25koz per year, beginning in early April 2023;
• Bulk sampling for grade evaluation of the Mt Boppy waste rock dumps has been initiated, supporting positive metallurgical tests that have confirmed the amenability to cyanidation of the screened product;
• Manuka’s gold production strategy includes a number of measures to prolong mine life/increase annual production:
o Exploration programmes to underpin the development of a number of small opencast deposits;
o Re-entry into the Mt Boppy open cut scheduled for later 2023 subject to finalization of economic mine planning to produce up to 45koz Au (included in current JORC resource2) beneath the base of the pit;
o Recovery of 3-4koz Au in broken ore at the base of the pit;
• Mt Boppy Deeps drilling for the evaluation of an underground mine
development is planned to start during H2 2023;
• Silver production has been deferred in favour of gold production, which yields far superior economics at the current Au/Ag price ratio.
The Mt Boppy Gold mine and neighbouring tenements, host an existing open pit resource of 281,850t grading 4.95g/t gold, based on a cut-off grade of 1.6g/t for material within its current open pit design and a cut-off grade of 3.0g/t for material below the current pit design.
The Mt Boppy project having ceased current open pit mining activities in Q4 2021, is in advanced exploration as additional exploration is conducted beneath the pit floor and nearby prospects. In addition, Manuka has identified a number of stockpiles and tailings deposits which are being evaluated for economic processing.
For further information please visit: https://www.manukaresources.com.au/
