The company is in the midst of building a fit-for-purpose processing and gold production facility at the Mount Boppy site for a cost of AU$11.6 million, a strategy it disclosed to the public last April.
Previously, ore produced at Mount Boppy was taken 150 kilometres south to Manuka’s carbon-in-leach plant at the Wonawinta silver mine. A 400 kilowatt ball mill is now being relocated from Wonawinta to Mount Boppy,
According to Manuka, Mount Boppy, which is located in New South Wales’ Cobar Basin, will be a high-margin operation with an average EBITDA of AU$19 million per year over an initial period of five years.
The company has already saved AU$850,000 following its AU$266,000 purchase of a new InLine Pressure Jig and Intensive Leach Reactor from Gekko Systems via auction; its original budget was AU$1.1 million.
Manuka said both items are currently undergoing refurbishment at Gekko Systems.
Mount Boppy is a historic mining site, and was formerly one of the largest gold producers in Australia. The company states on its website that underground mining at the property started in 1901 and last until 1923, with 417,000 ounces of gold from ore produced at a notional grade of 15 grams per tonne (g/t) gold.
The company is currently looking at ways to the increase milling capacity at Mount Boppy and to accelerate the mine’s gold production; it plans to keep investors updated in the coming months.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Manuka Resources is a client of the Investing News Network. This article is not paid-for content.
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