Manuka identifies substantial silver-gold resource upside in Cobar Basin

A strategic exploration review of Manuka Resources’ Cobar Basin tenements has revealed the substantial silver and gold resource upside along with high-grade base metals potential.

Manuka Resources (ASX:MKR) has completed an extensive review of all available geophysical data and reports going back over 30 years on its prospective ground in NSW’s Cobar Basin and concluded that it demonstrates the potential to materially grow the higher confidence indicated silver and gold resources.

The review highlighted prospective additional high-value resources of 22-35 million ounces at 40-50 grams per tonne (g/t) of silver, primarily from existing pits at Wonawinta, and 249,000-527,000oz at 2.5-3.8g/t of gold, with Mt Boppy depth extensions, along with the McKinnons & Pipeline Ridge prospects to be the focus.

Manuka also identified polymetallic indicated resource targets, including high-grade copper of up to 3%.

“The results of the Strategic Exploration Review point to substantial resource upside on our Cobar tenements, particularly in terms of near-mine silver and gold, but also high-grade copper opportunities along with zinc and lead,” chairman Dennis Karp explained.

“With our ~1Mtpa+ production infrastructure at Wonawinta capable of producing both gold and silver, near-mine ounces discovered are logical priority targets.”

Karp noted that the Cobar region was prolific for polymetallic deposits, and proposed drilling activity would yield a wealth of data to inform Manuka’s understanding of the structural controls that are key to delineating more polymetallic deposits on the company’s ground.

Cobar style deposits often lack surface expression which means the definition of fluid focusing structures is critical to identifying polymetallic mineral deposits.

The Wonawinta deposit already has a JORC resource of 51 million ounces of silver and 207,000 tonnes of lead.

Manuka is prioritising near-mine exploration, primarily focusing on the McKinnons, McKinnons North, Gundaroo, De Nardi, Wonawinta North and Boundary South targets during the extensive 2023 exploration campaign.

The company has outlined a proposed exploration budget of over $8m over two years including around 24,000m of drilling.

At the Mt Boppy project, Manuka’s goal is to increase the current JORC resource by an additional 84,000 -136,000oz of gold with the 2023 exploration program. Mt Boppy currently hosts a resource of 282,000 tonnes at 4.95g/t for 45,000 contained ounces of gold but has significant expansion potential at depth to increase both resources and grade and drive efficiencies.

The strategic review was authored by recently appointed chief geologist Phil Bentley, who joined Manuka late last year and is a veteran of the industry having begun his career in the early 1980s.

Bentley has been principally focused on precious and base metals and was, among other roles, formerly the Principal Geologist Africa for CSA Global, Global Head of Exploration at Trafigura, was Executive Geology of the Asanko Gold team that commissioned the +200,000 oz/annum Nkran open cut gold mine in Ghana, and as Group Consulting Geologist was a member of the team that developed Randgold Resources.

This article was developed in collaboration with Manuka Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.