Manuka Resources Share Price up 20% on Gold Resource Upgrade
The share price of one of Australia’s newest gold producers Manuka Resources Ltd [ASX:MKR] has spiked today on the release of a resource upgrade at its Mt Boppy Gold Project.
At time of writing the MKR share price is up 19.48% or 7.5 cents to trade at 46 cents per share.
Having listed on the ASX in mid-July 2020, MKR shares have made a return of 80.39%, although the share price is still a way off its all-time higher of 71 cents.
Growth still not limited
Today, MKR released its hotly anticipated resource upgrade at its Mt Boppy Gold Project in NSW, 43km east of Cobar.
The junior producer has four drill programs at the site since listing on the ASX last year, with assays received from three of the four programs thus far.
Based off the gold assay results received and modelled to date, the Resource Update totals 362,430 tonnes at 4.62 grams of gold per tonne (g/t) for a total contained 53,870 gold ounces.
The latest update represents an increase of 23% in contained ounces and around a 20% improvement in grade.
REVEALED: What’s Next for Gold Aussie Stock Prices? Learn more.
Within the current pit design, the Measured, Indicated and Inferred Resource (high level of confidence) totals 217,580 tonnes at 4.19/t for 29,320 ounces.
Below the current pit design, the Measured, Indicated and Inferred Resource now totals 144,850 tonnes at 5.27g/t Au, for 24,550 ounces.
But with MKR yet to receive the results from its fourth drill program, there is still room to expand the known resource further.
Is the MKR share price on the up?
MKR is already producing gold at the Mt Boppy Project and processing its gold ore through its nearby processing plant at Wonawinta.
Wonawinta also hosts MKR’s silver mine, a 52-million-ounce project with an inferred JORC compliant silver resource grading of 42 g/t silver.
Having recently completed 9,000 metres of in-fill drilling at the mine, MKR said Wonawinta would be getting a resource upgrade before the end of April.
At a time, the Wonawinta silver project was the largest producer of primary silver in Australia.
MKR intends to resume the production of silver doré (a semi-pure alloy) in mid-2021.
A downside of MKR and their processing plant is its recovery rate, coming in at 72.7% (and aiming for 75%).
Which is a little disappointing, particularly for such high-grade gold.
Regardless, with MKR set to become Australia’s largest primary producer of silver by the end of the year, the stock might be less of a gold play and more a play into silver.
Although, with Australia set to surpass China as the world’s gold capital, Aussie gold stocks could be set for some solid gains over the coming years. In her latest report, gold expert Shae Russell breaks down what Australia becoming the new gold ‘epicentre’ means for gold and your Aussie gold stocks. Click here to download the free report.
For The Daily Reckoning Australia