New Century Resources Limited (ASX: NCZ) today provided an update on Century production, reporting record zinc production and operational ramp up during the quarter ended 31 March 2019. The news sent the stock price to shoot up by 10.976%, closing at $0.910 on 11 April 2019.
The miner achieved more than 50% increase in quarterly zinc production with 18,170t of zinc metal produced in 37,500t of concentrate grading 48.3% zinc in Q1 2019. This compares to the production of 25,500t concentrate at 47.0% zinc in Q4 2018. Moreover, the silver content of 152g/t within the concentrate remained in line with previous quarter operations.
As per the company’s information, the quality of zinc concentrate produced also continued to improve significantly over the quarter, with a 25% decrease in the lead impurity content (5.6% Pb for March 2019 vs 7.5% Pb Q4 2018). Silica content remained within the target range of 5.0–7.5% SiO2 (6.9% SiO2 average for the quarter).
While hydraulic mining operations maintained two cannons in operation for Q1 2019, wet season effects and mining of marginally lower grade zones of the tailings dam caused an 8% reduction in overall zinc metal mined (1.39Mt at 2.92% Zn Q1 2019 vs 1.5Mt at 2.95% Zn Q4 2018). Despite this decrease in total metal mined, the operations still achieved an increase in metal production of over 50%, further demonstrating the significance in the improvement of plant metallurgical performance.
Post quarter end the installation of a third mining cannon and pumping system was reportedly completed, resulting in the ability for the operations to target ramp up to a mining rate consistently above 8.0Mtpa and up to 10Mtpa during Q2 2019.
The company believes that Century is a truly unique value proposition for exposure to large scale zinc production as the plant metallurgical performance continues to track toward nameplate design that includes up to 86% of overall nameplate zinc recovery target. The third mining cannon, out of total five cannon planned, is now online, providing a step change in mining rate into Q2 2019. The company further expects the plant capacity scheduled to more than double in 2019 through further flotation cell refurbishments.
2019 Drilling Plans:
New Century Resources has the plan to discover targets located on the mining lease for the near term development. This underscores the Targeted IP program directly north of the original Century open pit that has identified drill-ready opportunities. The company further intends to drill the identified IP targets adjacent to the open pit over 2019.
New Century Resources Limited is ASX300 Listed metals and mining sector company with operations ramping up to being a top 10 zinc producer, resulting +250kt zinc in concentrate per annum. The company reportedly has the potential for up to A$1.8B in free cash flow from current Reserves.
As at 11 April 2019, the market capitalisation of the company stands at $414.29 million with issued shares of 505.23 million.
Over the past 12 months, NCZ has declined by 32.51% despite a positive price change of 10.81% in the past three months.
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