MKR - Gold & Silver producer
With Gold & Silver powering higher... came across Manuka Resources
The plant was commissioned in March – May 2020, with June & July gold production coming in at 2,000 Oz Month and we expect production of 3,000 Oz a month going forward, where they will target 32,000 Oz of gold for the 12 mth period. The head grade is currently running at 2.7 g/t Au.
We anticipate 2 x drill rigs will be on site by the end of July and an additional rig by the end of August
MKR are currently running seismic and conducting 3D modelling to really hone in on their targets as historically Mt Boppy was the highest grade gold mine in NSW producing >500,000 Oz of Gold at 15 g/t.
Summary below & presentation attached.
· Manuka is Australia’s newest Gold & Silver producer. In April of this year, Manuka started Gold production at its Wonawinta plant targeting >32,000 ounces of gold annualised, with an AISC of AS1,255. (Current A$ Gold spot is $2,245.38)
o Post completing Gold production over the first year of production, Manuka will enter > 4years of Silver production
§ Based on current silver prices, Manuka expects a margin of ~A$14oz from the silver stockpiles and a margin of ~A$11 oz going forward (Current A$ Silver spot is $25.11)
· Manuka own 100% of two, fully permitted, Gold& Silver projects located in the Cobar Basin of NSW, Australia.
o the Mt Boppy(Gold project) hosts an existing open pit resource of 44,000 oz Au grading 3.13g/t (of which 31,000oz Au is in reserve status)
o the Wonawinta (Silver project) consisting of mine, >850tpa plant and substantial neighbouring tenements which hosts a resource of 52M oz Ag (JORC resource 42g/t).
· Manuka has successfully re-commissioned the Wonawinta mill using a combination of debt and equity
o Total current debt of A$24.5 million
o The Company is now processing ore and is able to reduce its debt in entirety from operating cash flow
o Manuka is budgeting to be debt free in less than 12 months
· The total tenure package consists of over 1,126 km2 and has vast under explored potential
· Funds raised from the IPO will be primarily used for exploration drilling
o Significant exploration potential
§ Mt Boppy (Gold) Historically produced >500,000 ozAu @ 15 g/t;
§ Scant historical drilling below 120 metres deep; and
§ Wonawinta (Silver) has never been drilled below 100metres in depth
· Post the successful listing on the ASX, the company will run multiple drill rigs growing both the existing resources / LOM at both projects but also drilling out several already identified targets
o Manuka will have steady news flow surrounding production and exploration activity post listing
Preso below reads well.. seems a decent enough gold/silver punt @24.5c
DYOR as always
MKR flying +7.41% .. made fresh highs! :)
go HLX the neighbor drills
Just when I thought it couldn't go much higher - opened on Monday at 28c and by today it closed at 63c !!! UNBELIEVABLE
Precious metals like Gold & Silver doing well so have taken a punt again on Manuka Resources MKR (especially given their high grade Silver exposure) in addition to holding a couple of other Goldie's in my portfolio (namely RMS & OBM).
Australian Gold & Silver AUD prices
DYOR .. Cheers tela :)
Aussie gold price crossed above $2400 per ounce whilst silver above $36
MKR share price has crossed above 20dma & 50dma respectively (bullish technicals).
Due to commence silver production in the next quarter which will reap in plenty of cash flow $$ on current decent Aussie silver margins (cash cost of only $16 per silver ounce).
DYOR .. Cheers tela :)
Back below 0.40c offers a great top up opportunity imo with our Aussie Gold price up overnight to $2434oz & near term Silver production commencing by Sep '21 so not long to go till we see more cash flow $$ coming in :)
Gold price up again overnight to US $1906 = AUD $2470
Silver rose to US $28.07 = AUD $36.21
Should see MKR sp re-rate over coming months with ramp up in production & cashflow $$ in Gold & Silver.
Cheers tela :)