Manuka Resources - Quarterly Activities Report - 31 July 2024
MANUKA RESOURCES LTD. (MKR) Share Update July 2024 Wednesday 31st
Manuka Resources Announces Major Developments in Gold and Silver Projects
Manuka Resources Limited (ASX: MKR) has released its quarterly activities report, highlighting significant advancements in its gold and silver projects, as well as strategic developments in its New Zealand iron sands project.
Instant Summary:
- Installation of a gold doré production facility at Mt Boppy.
- Successful $8 million capital raising for equipment and plant installation.
- Application for Taranaki VTM Iron Sands Project to be included in New Zealand’s Fast Track Consenting Bill.
- Approval of extension for mineral mining permit MMP55581, expanding the area by 375%.
- Pending release of Wonawinta maiden silver reserve.
Gold and Silver Projects
During the quarter ending 30 June 2024, Manuka Resources confirmed its intention to install a fit-for-purpose processing and gold doré production facility at its Mt Boppy gold project. The site, which is already permitted for processing, previously housed a gold processing plant.
The results of investigations into on-site processing at Mt Boppy were released in April 2024, confirming the economic viability of various plant feed sources. These results were included in a Mineral Resource Update released on 16 April 2024.
Capital Raising and Equipment Installation
Manuka completed an $8 million capital raising in May 2024, with the majority of proceeds allocated to finance equipment purchases and plant installation at Mt Boppy. Additionally, Proactive Mining Solutions was mandated to complete pit optimisations at Wonawinta, essential for the company's maiden silver reserve.
New Zealand Iron Sands Project
In April 2024, Manuka submitted an application for its subsidiary, Trans-Tasman Resources Limited’s (TTR) Taranaki VTM Iron Sands Project to be included in New Zealand’s Fast Track Consenting Bill. This legislation aims to streamline government decision-making and major project approvals.
Post-quarter, TTR received approval for an extension of mineral mining permit MMP55581, expanding the area by 375%. This extension includes an additional 967Mt of VTM resource, significantly increasing the reported VTM resource.
Future Outlook
The company is targeting the release of an updated Reserve Statement for Wonawinta during the current quarter, with plans to restart silver production in 2025. Manuka remains focused on achieving profitable gold and silver production from its two separate plants while reducing external debt obligations.
The installation of a gold doré production facility at Mt Boppy and the significant capital raising are expected to positively impact Manuka Resources' stock. The expansion of the Taranaki VTM Iron Sands Project and the pending release of the Wonawinta maiden silver reserve further strengthen the company's growth prospects.
Investor Reaction:
Analysts are likely to react positively to the strategic developments and capital raising efforts. The progress in both gold and silver projects, along with the expansion of the iron sands project, indicates strong future growth potential for Manuka Resources.
Conclusion:
Investors should keep an eye on the upcoming release of the Wonawinta maiden silver reserve and the progress of the Mt Boppy gold production facility. Manuka Resources' strategic initiatives and capital raising efforts position the company for significant growth in the coming quarters.