New Century on track for zinc mine expansion

New Century Resources has achieved a mining rate of 8.9 million tonnes a year at the Century zinc operation in Queensland.

This represents a leap from the December quarter’s average mining rate of 8.3 million tonnes a year, putting New Century on track for expansion to 12 million tonnes a year over the next two quarters.

New Century also achieved a 7 per cent increase in zinc production during the December period, achieving its quarterly guidance with 28,123 tonnes.

The company has reduced its direct costs (C1 costs) by 3 per cent quarter-on-quarter to $US0.96 ($1.40) per pound of payable metal.

New Century declared a March quarter guidance of 29,000–35,000 tonnes of zinc metal, with C1 costs of $US0.85–$0.95 per pound.

“(The company) anticipates continued reduction in C1 costs during the March 2020 quarter, via increased metal production from the upgraded rougher circuit, which provides more efficient utilisation of the fixed cost base of operations (around 71 per cent of site costs are fixed and unchanged with increased throughput),” New Century stated in a media release.

New Century expects to implement and commission the final rougher circuit upgrade in March, as it progresses the Century mine expansion to a 12 million tonnes a year operation.

The company will keep around $61 million of capital available to complete ramp up activities at Century over the remainder of the 2020 financial year.

New Century will provide further operational update at the end of January as part of its full quarterly activities release.

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