Name of the Project
Century zinc mine project.

Location
North-west Queensland, Australia.

Project Owner/s
New Century Resources.

Project Description
The Century mine, one of the biggest zinc mines in the world, was placed on care and maintenance in 2016 by the previous owners and acquired by New Century in 2017.

Production at the mine restarted in 2000.

An in situ feasibility study has investigated the incorporation of Silver King and East Fault Block in situ deposits into the existing mine plan, in addition to the reprocessing of current tailings, to produce zinc concentrate and a new lead concentrate.

Silver King and East Fault Block have total mineral resources of 4.4-million tonnes grading 4.8% lead, 5.4% zinc and 47 g/t silver, and probable mineral reserves of 2.5-million tonnes at 5.35% lead, 5.6% zinc and 68 g/t silver. The ore reserves extend the mine’s life to 2027.

Average lead metal in concentrate production is estimated at 33 000 t/y, containing 972 000 oz/y silver. Average additional zinc metal in concentrate production is estimated at 22 000 t/y.

A clear pathway exists to extend the life-of-mine to 2030 and beyond through the conversion of mineral resources at the project’s Watson’s Lode, South Block and further Silver King extensions.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the base case, the project has a pretax net present value, at an 8% discount rate, of A$212-million and an internal rate of return of 102%, with a payback of 2.2 years.

Capital Expenditure
Preproduction capital is estimated at A$66.7-million, with the cost spread over about the first 15 months from initiation of project development.

Planned Start/End Date
First production is scheduled for the first quarter of 2023.

Latest Developments
Heavy rainfalls in Queensland could likely see a quicker uptake of global miner Sibanye-Stillwater’s takeover offer for zinc miner New Century Resources, as operations at its namesake mine remain suspended.

New Century in early March suspended operations at the Century mine and at the Karumba port facility, following heavy rainfall in the region.

The extreme rainfall has cut off access to Century by road, which has impacted on the deliveries of production consumables.

However, the airstrip remains open allowing for shift change charters and the delivery of necessary camp consumables.

New Century has told shareholders that recovery efforts are progressing, however, production and nonessential activities remain suspended while dewatering operations continue.

The company does not expect to resume production for two to three weeks, at which time hydraulic mining activities would only operate at 75% of nominal capacity. The return to normal production levels is only expected by mid- to late April.

New Century has warned of production losses of 15 000 t to 20 000 t of zinc metal for the 2023 financial year.

The company has also warned that the production shortfall is likely to impact on short-term liquidity. The company is engaging with shareholder and suitor Sibanye-Stillwater on mitigating key operational and business risks, including short-term liquidity issues.

Sibanye has confirmed that it is committed to working with New Century to ensure New Century remains in a position to pay its debts as and when they become due and payable, and subject to agreement on legal documentation, to providing or procuring a funding solution up to A$30-million, subject to New Century providing certain information and releasing the target's statement as soon as possible.

Sibanye’s offer for New Century will remain open, and the New Century board has again urged shareholders to accept the A$1.10 a share offer.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
New Century Resources, tel +61 3 9070 3300 or email info@newcenturyresources.com.