New Century Resources Announces Feasibility Study Results for Re-Start of Century Zinc Mine in Queensland
Subiaco, WA / November 28, 2017 / JMN Wire / New Century Resources Limited (ASX:NCZ) (Company or New Century) is pleased to announce the results of the Restart Feasibility Study (RFS) for the Century Zinc Mine in Queensland.
The RFS, completed by Sedgman Pty Ltd (A member of the CIMIC Group) (Sedgman) in collaboration with New Century Resources, included detailed economic analysis on a large scale tailings reprocessing operation utilising the significant existing infrastructure located on site at the Century Zinc Mine.
Based on the proposed production profile, New Century estimates Century will again be one of the top 10 zinc operations in the world, with steady state production forecasted at 507,000tpa of zinc concentrate at 52% zinc (264,000tpa zinc metal) over an initial 6.3 year mine life from the Century Tailings Deposit only.
- Restart Study completed by Sedgman in collaboration with New Century Resources and third party specialist consultants
- New Century considers Project to have outstanding fundamentals with Century to become one of the world’s largest and lowest cost zinc operations
- A$1.76 billion in post-tax cash flow over an initial 6.3 year mine life at a long term zinc price of US$1.25/lb (US$2,755/t) from the Century Tailings Deposit only; posttax NPV8 of A$1.3 billion and IRR of 270%
- Proven Ore Reserve declared of 77.3Mt at 3.1% ZnEq
- Low start-up capital of A$50M & working capital of A$13M, with New Century to be fully funded via A$50.7M cash (in place) & completion of a A$58M debt facility
- Early works program underway, formal plant refurbishment and re-commissioning activities planned for January 2018, targeting first production in Q3 2018
- All necessary permits and approvals in place to undertake the restart
- Concentrate offtake negotiations advancing on highly favourable terms
- Expansion Feasibility Study to be undertaken in 2018 to assess high grade in-situ resource blending potential to extend mine life and increase production levels