Manuka Resources (ASX:MKR) - Executive Chairman, Dennis Karp
Executive Chairman, Dennis Karp
Source: OnMarket
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  • Manuka Resources (MKR) has agreed to extend its debt facility with TransAsia Private Capital to September 30
  • The company is planning silver production at its Wonawinta Project in NSW, which it expects to commence in October
  • The stockpiles will be processed over nine to 12 months, with an anticipated yield of 125,000 to 130,000 ounces of silver per month
  • MKR is awaiting the assay results from an initial 18-hole drilling program at the site last month
  • Meanwhile, the company is targeting a completed mine plan in June and a maiden ore reserve to be announced shortly after
  • Manuka Resources shares have dropped 6.33 per cent to trade at 37 cents

Manuka Resources (MKR) has agreed to extend its debt facility with TransAsia Private Capital to September 30 as the company continues to plan silver production at its Wonawinta Project in New South Wales.

In an announcement this morning, MKR recognised TransAsia as an “extremely supportive” financier over many years.

Even so, the company has remained focussed on refinancing the facility, which it says will likely result in a facility with reduced interest costs and a longer duration.

Meanwhile, Manuka is planning a transition from gold production at its Mt Boppy Project to silver production at Wonawinta from mid-September, with production slated to commence in October.

The company intends to derive initial silver production feed from stockpiles onsite, with the majority — comprising over 500,000 tones — located adjacent to the mill.

The processing of the stockpiles is expected to take nine to 12 months, ending in the third quarter of next year, after which time ores mined from open cut pits will be processed.

Notably, MKR anticipates the silver processing will yield 125,000 to 130,000 ounces per month.

Additionally, recent work at Wonawinta included a diamond drilling program completed last month, which was designed to test a proof of concept for carbonate-hosted sulphides in the Winduck Shelf strata.

The initial program comprised 18 holes drilled over four fence lines covering 2442 metres of reverse circulation holes and 2648 metres of diamond drilling.

Mankua is awaiting assay results from the drilling.

Meanwhile, pit optimisation works are now underway at the site, with a mine plan due to be completed in June and a maiden ore reserve to be announced shortly thereafter.

Mid-session, Manuka shares are trading 6.33 per cent lower at 37 cents at 1:02 pm AEST.

MKR by the numbers
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