Manuka Resources Ltd (ASX: MKR) has updated the prefeasibility study for its Cobar Basin silver project, saying it can produce 13 million ounces of silver and healthy profits over a 10-year mine plan.
The company said in a statement to the ASX on Friday that it could produce 35,000 ounces of silver and 35,000 ounces of gold from existing stockpiles and open pits at the Wonawinta Silver Mine and the Mt Boppy Gold Mine in New South Wales.
Manuka said the mining plan was expected to generate an average EBITDA of $127 million per year at an average cost of production of $34.40 per ounce of silver. This compares with the current price of silver of $170.88.
Pre-production capital costs were expected to be $26.6 million.
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Funding almost locked in
The company said this regarding the funding of the project:
The company raised $15 million in October 2025 and is in the final stages of reaching a binding agreement for a US$22.5 million debt facility with Nebari Natural Resources Credit Fund. This ensures Manuka is fully funded to production and profitability.
The project includes the Wonawinta mines as well as an existing processing plant, which was placed on care and maintenance in early 2024 after intermittently processing silver and gold ore from 2021 to 2023.
The production plan outlined in the new prefeasibility study calls for recommissioning the plant to boost performance, followed by processing silver ore from selected stockpiles and five open pits.
Existing gold ore from Mt Boppy would also be processed.
Manuka is also doing further exploration work at Mt Boppy, which it said had historically delivered about 500,000 ounces of gold.
Manuka Executive Chairman Dennis Karp said this regarding the project:
Manuka is uniquely positioned among junior ASX resource companies as one that is well set to translate historically high silver and gold prices into substantial near-term cash returns for the Company and its shareholders. With our existing 1Mtpa processing plant set to restart within the coming months, debt funding to support the modest capital costs nearing finalisation, and an initial 10-year production plan demonstrating outstanding economics, Manuka presents both as a compelling and significantly undervalued investment opportunity. Project execution is ramping up, and we look forward to providing updates to the market as we progress towards first production.
Mauka Resources shares were steady at 22 cents on Friday after hitting a high of 22.5 cents.
The shares are up from a low of just 2.3 cents over the past 12 months.
Manuka was valued at $319.5 million at the close of trade on Thursday.
