Wonawinta silver project set for restart under Macmahon deal

Macmahon Holdings (ASX: MAH) is partnering with Manuka Resources (ASX: MKR) for the restart of mining operations at the Wonawinta silver project in NSW.The agreement covers open pit mining services, drill and blast and load and haul activities with mining expected to recommence in May 2026.The restart will be supported by Macmahon’s surface mining teamA formal mining services agreement is anticipated to be finalised in April, with an estimated value of $190m across an initial five-year term.Macmahon has said no additional capital expenditure is required for FY26, with company guidance remaining unchanged.The Wonawinta project, located in the Cobar Basin, last operated in 2015 before being placed in care and maintenance due to low silver prices.Manuka Resources acquired the project in 2016 and has since intermittently used the site’s processing plant for gold from its nearby Mt Boppy operation.The project was returned to care and maintenance in early 2024.Macmahon managing director and chief executive Michael Finnegan welcomes the opportunity to partner with Manuka Resources to de-risk operations at Wonawinta.“Macmahon is proud to be working in partnership with Manuka Resources to get this exciting large-scale silver project into production again” he said.“We look forward to working closely with them to deliver the operational flexibility and scalability that supports Manuka’s development timetables and production targets.”