Manuka Resources- The New kid on the block to Debut on ASX Next Month

Summary

• High exploration across the continent is among the top agenda of both the ASX-listed and non-listed gold mining companies.
• In the middle of skyrocketing gold prices, while some local miners are gearing up to secure high gold prices, some are emerging and marking their way to the market for capital.
• The prevailing sentiment around gold is making capital raising smooth for newbies with the emerging gold miner Manuka Resources clinching $7 million through an oversubscription and is ready to mark its presence under the ASX umbrella next month with the symbol of MKR.
• Manuka has identified near-term revenue opportunities via processing an existing load of nearly 500,000 tonnes of silver oxide stockpiles and has tapped the market for capital, which remained a major success with subscription closing way ahead of the deadline due to vast interest from the investing community.
• The miner plans to move ahead with infill program and fast track its exploration across its flagship Mt Boppy and Wonawinta Silver projects, both of which holds considerable JORC 2012 classified Mineral Resources.

Australia is emerging as the hub for gold exploration with many listed and non-listed gold mining companies ramping up operations to secure the high gold prices. The rise in gold price is also supporting the gold exploration investment, and the global turmoil along with strong buying of global gold-backed ETFs is making it sure that the exploration investment pipeline remains clot free.

To Know More, Do Read: Gold Retracement- Gold Exploration Once Again on Agenda- Ramelius and Gold Road

In the middle of gush for gold, a new kid on the block- Manuka Resources has emerged with its recent Initial Public Offering (or IPO) clinching $7 million through an oversubscription. The Company has raised public capital to move forward with the infill drill and fast track exploration at its flagship Mt Boppy gold and Wonawinta silver projects.

Manuka currently holds 100 per cent stake on both projects in the mineral-rich Cobar Basin, i.e., Mt Boppy gold project and Wonawinta silver project, with both hosting large mineral resources.

The recent equity raising by the Company indicates a market capitalisation of ~ $50 million and Manuka would issue 35 million shares at an issue price of $0.20 per share before making its debut on the exchange next month with the symbol of ‘MKR’.

Tenements Profile

• Manuka Mine Project

The Manuka mine is located in New South Wales, around 52km to the southwest to the Cobar Basin, and it is composed of one mining lease (ML1659) and seven granted exploration licences- EL6155, EL6302, EL6482, EL6623, EL7345, EL7515 and EL8498.

The prospect also contains an on-site infrastructure within the ML1659, about 80km to the south of the Cobar Basin.

Furthermore, the mining lease of the prospect falls entirely within Western Lands Lease (WLL6238) which is fully owned by the Company along with a Crown Licence LI 57250 over the Western Lands Lease, which provides it access to the water bores within the adjoining Wirlong Property to the south of WLL6238.

Manuka also holds an Environment Protection Licence (or EPL)- on which an annual fee and reporting requirements are conditional.

• Mt Boppy Gold Mine and Wonawinta Silver Project

The Company acquired the Mt Boppy project last June, and the prospect contains an open-pit, which has been sporadically operated since 1895. Furthermore, the prospect hosts JORC 2012 classified resource of 320,000 tonnes with an average grade of 3g/t of gold, containing 31,000 ounces of gold.

The prospect consists of seven mining leases and one exploration licence and is located ~ 45km east of the Cobar Basin. Just like Manuka mine, the Company owns several tenements and other licences concerning mining activities.

Both the prospect started in April 2020, and so far, Manuka managed to produce 800 ounces of gold (in carbon) and at present, is in the process of commissioning a modular elution circuit, which would allow the miner to produce gold doré on-site at the Wonawinta Silver Project.

The Wonawinta prospect of the Company comprises of a granted mining lease and holds a 52 million ounce of JORC 2012 classified Mineral Resource. Furthermore, the prospect is a 920 km² portfolio of highly prospective exploration tenements with a substantial processing plant, holding a processing capacity of 850,000 tonnes per annum.

Developments and Future Plans

Manuka acquired the Wonawinta Silver Project in August 2016, and since then, the Company has commissioned various technical reports and studies over the prospect related to accessibility, climate, infrastructure, and mineralisation, including a study to redefine existing silver Mineral Resources.

As of now, Manuka has identified near-term revenue opportunities via processing an existing load of nearly 500,000 tonnes of silver oxide stockpiles.

Furthermore, the Company has designed and completed a comprehensive plant refurbishment program to determine previous operational shortcomings, returning the prospect in a state of operational readiness during the first quarter of the year 2020.

In April 2020, Manuka started processing stockpiles gold ores from Mt Boppy at the Wonawinta Processing Plan and is currently processing gold loaded carbon offsite at a third-party facility, which would cease post the installation of the modular elution circuit.

For the future, Manuka has divided its short- to medium-term activity into three phases, which are as below:

• In Phase 1, Manuka plans to continue ore processing at the Wonawinta processing plant and mining ore from Mt Boppy over the next 12 months with an aim to recover ~ 22,000 to 24,000 ounce of gold.
• In Phase 2, the Company would start processing silver oxide stockpiles on-site during the second quarter of the year 2021.
• In Phase 3, Manuka would commence mining and processing the shallow silver oxide resource at Wonawinta during the first quarter of the year 2021.

In a nutshell, the ongoing sentiment around gold along with the ongoing gold exploration across the continent has allowed Manuka Resources to raise $7 million in an oversubscription for its future plans concerning Mt Boppy and Wonawinta prospects.

Furthermore, both prospects of the Company have been in a production stage; however, the miner is currently processing its ore through a third-party, which it plans to end in the near-term through the installation of a modular elution circuit on-site at the Wonawinta silver prospect.

Also Read: Gold Vaults to Highest Levels Since October 2012; Trade Trends and Data Divergence

For the exchange of $7 million, the miner would issue 35 million shares at an issue price of $0.20 per share and would mark its appearance next month on the exchange for secondary trading under the symbol of MKR.