Gold production imminent at Mt Boppy

Manuka Resources (ASX: MKR) is set to restart gold doré production at its Mt Boppy gold mine in NSW with first production targeted for Q4 2024.

Currently, Manuka is constructing a fit-for-purpose processing and gold doré production facility and relocating the ball mill and associated processing components.

In April 2024, Manuka announced it would establish a fit-for-purpose processing and gold production facility at Mt Boppy for a capital cost of $11.6m to generate average earnings before interest, tax, depreciation and amortisation of $19mpa over an initial five-year period.

Previously, ore mined at Mt Boppy was hauled 150km to the carbon in leach process plant at a cost of $27/t. This on-site processing at Mt Boppy is expected to save around $7m a year.

Manuka’s low capex strategy and base case production target at Mt Boppy is designed around an annualised feed rate of 230ktpa through the 400kW ball mill.

Manuka executive chairman Dennis Karp commented on the restart of operations.

“The execution of our plan to restart gold operations at Mt Boppy is well underway,” he said.

“The opportunistic purchasing of selected second-hand processing equipment is consistent with our low capex strategy that include 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 updated to the market as we progress towards first gold production at Mt Boppy.”