Manuka Resources Advances Toward Production Restart with Strong Cobar Basin Strategy

June 26, 2025 02:23 PM AEST | By Team Kalkine Media

Manuka Resources Advances Toward Production Restart with Strong Cobar Basin Strategy — Image source: Shutterstock

Financing in Focus to Restart Wonawinta

The company is actively engaging with multiple funding partners to refinance existing debt and enable the revival of the silver mine operations at Wonawinta. This move comes on the back of a comprehensive update to its 10-year production strategy, reinforcing its ambitions in the resource-rich Cobar Basin region. The completion of technical and legal due diligence positions the company well to secure funding and recommence operations early next year.

10-Year Cobar Basin Plan Aims High

Manuka Resources’ updated production blueprint outlines the mining and processing of 10.7 million tonnes of silver and gold material over the next decade. The plan is bolstered by the supportive price environment for both metals, enhancing the Net Present Value (NPV) of the project to approximately A$153 million. The company continues its feasibility assessments to refine the production model further, particularly evaluating a potential reduction in the Mt Boppy open pit size for operational synergy and cost efficiency.

Mt Boppy Re-Optimisation Offers Upside

A key component of the broader strategy is the re-optimisation of the Mt Boppy Gold Mine. The revised pit cut-back plan aims to unlock an additional 53.5 thousand ounces of gold, with results anticipated in the coming quarter. With an in-situ gold grade exceeding 4g/t, the cut-back is positioned as a potentially high-margin addition to the broader Cobar Basin operations.

ASX200 Watch: Sector Activity and Outlook

While Manuka Resources (ASX:MKR) is not a current constituent of the S&P/ASX 200, its forward-looking strategy and upcoming production ramp-up align with the kind of momentum seen in several resource-driven players within the ASX200. As the company moves toward finalising its funding and execution steps, broader market interest could follow, particularly given the current macro environment favouring precious metals.

As Manuka Resources aligns its financing and operational plans, market watchers and industry participants will be keeping a close eye on the company’s transition into its next phase of production. With strategic initiatives in place and the potential for strong returns from both silver and gold assets, the upcoming quarters may be pivotal for Manuka’s trajectory in the Australian resource sector.

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