Highlights
Dennis Karp, Manuka’s Executive Chairman, commented:
“The execution of our plan to restart gold operations at Mt Boppy is well underway.
The opportunistic purchasing of selected second-hand processing equipment is consistent with our low capex strategy that includes the leveraging and repurposing of existing assets including the Wonawinta 400kW ball mill, diesel generators, 48-man accommodation camp and mobile screening plant.
We look forward to providing regular updates to the markets as we progress towards first gold production at Mt Boppy.
Background
The Mt Boppy gold mine is an existing gold operation comprising a brownfields open pit and associated historic ROM stockpiles, rock dumps and tailings.
In April 2024, Manuka announced a strategy whereby a fit-for-purpose processing and gold production facility would be established at Mt Boppy for a capital cost A$11.6M to generate an average EBITDA of ~A$19M per annum over an initial 5-year period2.
A sonic drilling program over the Main Rock Dump and Tailings Storage Facility 3 (“TSF3”) was completed in late 2023 which improved confidence in Resource3 grade and ore type distribution and underpins the updated production strategy.
Previously, ore mined by Manuka at Mt Boppy had been hauled 150km to the CIL process plant located at Wonawinta at a cost of ~A$27/t. The updated strategy of on- site processing is expected to save in the order of A$7M per annum.
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