New Century Resources Limited Edges Higher After Operational Activities Update

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New Century Resources Limited (ASX: NCZ) provided an update on the operational ramp up activities at the Century Zinc Mine during the month of October 2018 on November 5, 2018 i.e. today.

Hydraulic mining activities have faced varied downtime events. First half of October experienced restricted mining operation whereas second half of the month had record daily hydraulic mining rates. From the ‘main launder trench’ the hydraulic mining activities have now moved to first ‘mining block’ at full face heights. The ramp up activities are nearing nameplate for phase 1 (8Mtpa). Continued focus of the partners, NPE & Paragon is towards improving the reliability of the pumping facility and associated infrastructure. Introduction of several areas of automation and commission issues rectification that were previously observed remained strong focus points. Key focus remained on consistence maintenance of the uptime, steady state feed density and improving the ramp up process.  

Processing Plant experienced positive operational ramp up despite a lack of constant feed to the plant for the first half of the October month. Improved consistency of feed to the plant, enabling stabilization of each circuit and continuation of commissioning activities was experienced in the October month.

NCZ remained focused on the load commissioning process within the plant and expects the recoveries of the Phase 1 nameplate and production of steady state concentrate specification to be achieved by the end of Q1 2019 and full ramp up to Phase 2 mining rate of 15Mtpa by the end of 2019.

Major part of the operations during the October month were coined around the successful completion of all activities associated with the arrival of MV Wunma back to the Karumba port. Successful completion of these activities till date have given an opportunity to initiate concentrate exports, with the completion of loading of the first export vessel located at Gulf of Carpentaria. Q42018 port and pipeline operations will focus on maintaining the uptime, concentrate stockpiling and export shipments preparation.

First concentrate shipment was fully loaded and sailed, with the maximum available shipping parcel of 11,000t delivered by the company representing the major milestone achieved by the Company in a small span of just 15 months after it got listed on the ASX and has allowed NCZ to complete another forward sale of 10,000t of zinc concentrates providing revenue of approximately A$15.3M. Except the minor load commissioning work within the port facility, slurry pipeline operations are working efficiently.

NCZ has recently completed the legal documentation process and signing of the debt facility with NAB for approximately A$40M. NCZ has completed a series of community consultation meetings as part of its 20-year review of the Gulf Communities Agreement.

Operational viability of the entire logistic chain for the restarted operations at Century was very well demonstrated during the reported period. NCZ faced increased production demand for the current commissioning concentrate, interest from other producers, and received bids from existing offtake partners.

With its monthly development update on the ramp up activities at the site and achieving the major milestone in just a span of 15 months ever since it got listed on the ASX, the scrip after making an intraday day rise of 1.137% is trading near the levels of $1.067 (3PM AEST).


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