PERTH (miningweekly.com) – ASX-listed Manuka Resources has completed Phase 1 gold production at the Mt Boppy project, New South Wales, and will now transition to silver production at its Wonawinta plant in March.
Manuka told shareholders on Tuesday that the Mt Boppy gold project had outperformed forecasts by over 70% in terms of tonnage milled, ounces recovered and sales revenue achieved.
The project produced 40 942 oz of gold, compared with the 22 000 oz to 24 000 oz previously predicted, with sales revenues of over A$100-million achieved, compared with the forecast A$55-million to A$60-million.
“The Mt Boppy gold project has proven to be a fantastic asset for Manuka. Following high grade historical production between 1895 and 1925 of some 500 000 oz gold at an average of 15 g/t, we recommenced Mt Boppy operations in April 2020. With a June 2020 mineral resource of 38 020 oz gold, we produced in excess of 40 000 oz gold and additional drilling since then has added a further 39 150 oz gold to the resource,” said Manuka executive chairperson Dennis Karp.
Manuka is still awaiting the results of its most recent drilling campaign which is expected to add further to these numbers.
“We are now transitioning to silver production, initially via the processing of silver grading stockpiles for between six to eight months starting in March. A commercial decision will be made near the end of this stockpile processing, as to whether Manuka continues on and mines its existing Wonawinta silver resource or elects to return to the mining and processing of Phase 2 of gold production at Mt Boppy. This will depend upon a number of factors including the results of gold drilling at Mt Boppy as well as relative gold and silver prices,” Karp added.