New Century Resources Ltd Reaches Major Milestone as Optimization Study Improves Century Mine Deposit Economics


New Century Resources Ltd (ASX: NCZ) has obtained all necessary environmental clearances for the development of the Silver King and East Fault Block in situ deposits of the Century Mine Project in Queensland, Australia, and has enhanced the potential of the deposits through a positive optimization study which indicates a robust economy.

According to New Century, the optimization study provided “very attractive economics” and an improved production profile, with slightly different metrics based on a “base case” – analyst consensus pricing – or a “point case”. “- based on the current mineral spot price.

Recognizing the importance of the approvals and the study, investors sent NCZ shares up to 8.25% higher intraday at A$2.10.

Production optimizations

The base scenario offers a pre-tax net present value (NPV8) of A$226 million, with an internal rate of return (IRR) of 91%, resulting in a payback period of 2.2 years, while that the specific case includes a pre-tax NPV8. of A$246 million, an IRR of 101% and a payback period of 2.1 years.

The NCZ optimization study also improved the project’s production profile, increasing average annual lead metal production (in concentrate) by 9% to 36,000 tonnes with 1.07 million ounces of contained silver.

Zinc production increased by 39%, resulting in an average production of zinc metal (in concentrate) of 30,500 tonnes per year.

Additionally, site operating costs have been reduced to C1 (direct costs) of $0.67 per book and an overall sustaining cost (ASIC) of $0.90 per book.

“Significant short-term opportunity”

“The New Century team is delighted to have reached an important milestone in the development of Silver King and the East Fault Block by obtaining all necessary environmental approvals,” said Patrick Walta, Managing Director of New Century Resources.

“The optimization study also reinforced the highly value-creating potential of Century’s in situ development, significantly extending the production profile and asset life while reducing site-wide unit costs. .

“The results underscore the significant near-term opportunity presented by the development of Silver King and East Fault Block, which will pave the way for the continued use of approximately A$2 billion previously invested in infrastructure. Century to 2030 and beyond.

“We look forward to updating shareholders on further progress in the coming months as we move toward completion of debt financing and a final investment decision.”

The optimization study also offered key improvements to the initial in situ feasibility study, improving metallurgical and flowsheet results, reducing lead losses due to pipeline rheology and modeling, and improving network power quality.

In order to maintain the current development schedule, the company has ordered long lead items, secured initial underground mining equipment and – through contractor GR Engineering Services Ltd (ASX:GNG) – completed front-end engineering and design (FEED).

Next steps in development

From there, Century will move into executing the Engineering, Procurement and Construction (EPC) contract with GR Engineering Services for process plant upgrades, continuing the ongoing optimization of value, operational readiness and procurement of long-lead items, and completion of the internal approval process and finalization of debt financing agreements. .

A final investment decision (FID) will follow internal and senior debt financing approvals and the completion of the debt financing, targeted for the second half of this year, with first production scheduled for the second half of 2023.


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