Manuka Targeting Near-Term Gold and Silver Production from its Cobar Basin Projects

The Mt Boppy Gold Mine is located within the prolific Cobar Basin of New South Wales. Since acquiring Mt Boppy in 2019, Manuka Resources Limited (ASX:MKR, the “Company”) has increased the Resource from 31,000 ounces of gold to 160,000 ounces (see Table 1 below) and produced in excess of 45,000 ounces of gold from ore that has been trucked to and processed through the 850,000tpa CIL plant located at Manuka’s Wonawinta Silver Project, approximately 150km south of Mt Boppy.

Highlights

• Manuka is the 100% owner of the Mt Boppy Gold Mine and Wonawinta Silver Mine, both located in the prolific Cobar Basin of western New South Wales.
• To date, ore mined by Manuka at Mt Boppy has been processed through the 850ktpa processing plant located at Wonawinta, some 150km south of Mt Boppy.
• Based on results received from the sonic-drilling program over the gold-bearing rock dumps and tailings at Mt Boppy, the Company has determined that the establishment of a fit-for-purpose, on-site crush-screen-mill-float-intensive cyanidation facility capable of processing approximately 200,000 tonnes p.a. will materially enhance the economics of the Mt. Boppy Mine and the value of near- mine prospects.
• Manuka anticipates the capital cost of the on-site processing facilities to be in the order of A$10-15M (annual ore haulage alone from Mt Boppy to Wonawinta would equate to ~50% of this capital cost). The processing facilities are scheduled to be installed, commissioned and producing gold dore in calendar Q4 2024. The Mt Boppy site is fully permitted for the proposed processing plant and on-site production.
• An updated Reserve and production plan for the Wonawinta Silver Mine (currently on care and maintenance) is targeted for release in May 2024.

Manuka’s Executive Chairman, Dennis Karp, commented:

“Mt Boppy has historically been one of the richest gold mines in New South Wales, having produced circa 500,000oz of Gold at 15 g/t. Indeed, since acquiring Mt Boppy in June 2019, production performance has largely exceeded our initial forecasts, notwithstanding the fact that we have processed Mt Boppy ore through the Wonawinta Processing Plant.

Our decision to transition to on-site processing at Mt Boppy will increase operational flexibility and deliver lower operating costs. We estimate that the savings in ore haulage alone will be in the order of A$6-7 million per year. The step-change in cost base supports a robust business case for the continued near-term processing of gold bearing rock dumps and tailings and deliver cashflows to fund aggressive brownfields exploration at Mt Boppy and at near-mine prospects such as Pipeline Ridge.

With gold and silver markets buoyant, we are excited by the immediate opportunity to re- establish ourselves as an ASX precious metals producer in the Cobar Basin, whilst progressing in parallel the development of our world-class Taranaki VTM Iron Sands Project in New Zealand.”

Background

Manuka completed a sonic-drilling program in December 2023 across the gold bearing rock dumps and dry tailings to improve confidence in grade distribution within the respective Resources and therefore the ability to selectively mine higher grade regions in each.

Based on positive preliminary results from the sonic drill program, Manuka has decided to progress an updated production strategy whereby a fit-for-purpose, 200,000tpa on-site crush- screen-mill-float-intensive cyanidation capability will be established on site at Mt Boppy.

Initial discounted cashflow calculations using the Mt Boppy updated production strategy and Wonawinta optimisation study supports the carrying amount of the Cobar assets as noted in the December 2023 Interim Financial Report.

The Company is currently in advanced negotiations to secure a process plant and anticipates the capital cost to be in the order of A$10-15M fully commissioned. The capital cost equates to less than 2 years of the current cost for transporting ores from Mt Boppy to Wonawinta at the proposed rate of production. The Mt Boppy site includes an existing 48-person mining camp, power and water, administration office, exploration office and is permitted for the processing plant and on-site production.

Manuka aims to be producing gold dore from the new plant at Mt Boppy by Q4 2024.

Table 1: Mt Boppy Resource Estimate1

Wonawinta Silver Mine Update

A dedicated processing facility at Mt Boppy will allow for dual revenue streams by freeing up the Wonawinta processing plant to process ore from the Wonawinta Silver Mine (currently on care & maintenance) and associated stockpiles.

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