With silver prices at record highs, Manuka Resources is moving full steam ahead to restart operations at Wonawinta mine, 100km south of Cobar.
The large-scale silver project hosts more than 50 Moz (50 million ounces) of silver resources, and is supported by a strong upward trend in silver prices.
Manuka Resources’ Chief Operating Officer Haydn Lynch said the company had recently released an updated feasibility study for its Wonawinta and Mt Boppy operations.
Mr Lynch said the project’s Net Present Value, based on a 10 year mine life, is estimated to be around $800 million.
“The lift in silver prices from less than $A40/oz in 2020 to a recent high of $A155/oz provides the perfect environment to commence mining at Wonawinta,” Mr Lynch told The Cobar Weekly on Monday.
Silver is in high demand primarily due to its role as a critical industrial component for green energy transition, specifically in solar panels, electric vehicles, and electronics, as well as advanced computing.
Manuka Resources will stage the restart of operations at Wonawinta by initially hauling gold bearing surface stockpiles from the Mt Boppy mine at Canbelego and processing that ore through the Wonawinta plant, similar to 2020 – 2023, with the mining and processing of silver ore at Wonawinta scheduled to commence mid year.
Mr Lynch said it’s been almost 10 years since mining ceased at Wonawinta in 2015.
“We look forward to seeing operations recommencing,” he said.
“Wonawinta is the only primary silver mine in Australia slated for production this year and over the medium term.
“The appreciation in gold prices over the same period ($A2,000/oz to over $A7,000/oz) means that several satellite gold resources in the southern Cobar basin could be processed through the Wonawinta plant, which is a modified leach circuit.”
Manuka Resources has this week commenced their recruitment campaign in readiness for processing operations to begin in mid-May.
The re-start of mining activities at Wonawinta is expected to have positive flow-on effects for the Cobar community with the company having a strong focus on recruiting from the local region.
The re-start will also provide a boost to local businesses and contractors.
The creation of new jobs will also help to support school enrolments, retain and attract families, and indirectly benefit local sporting clubs and community organisations.
Mr Lynch said as Manuka will be initially hauling ore from Mt Boppy to Wonawinta for processing, the company will be looking at road upgrades which would also benefit local landholders in the area.
