New Century Resources is pushing ahead with preparations to mine the Silver King and East Fault Block sites in an expansion of its Century operation in North-West Queensland.

In its quarterly report, the company said it had kicked off early works programs including ordering of long lead items such as the ball mill.

The front-end engineering and design (FEED) contract for the processing plant has been awarded to GR Engineering.

New Century said it had carried out preparation for surface infrastructure and advanced geotechnical assessment of the Silver King box-cut location.

Subject to finalisation of the necessary approvals and a final investment decision being made, the
company said it was on track to target first in-situ ore processing in early 2023.

December quarter production at Century Mine was 30,300 tonnes (66.7Mlbs) of zinc-in-concentrate at an average grade of 48.2 per cent.

The company achieved a performance milestone with the delivery of its first full quarter of zinc metal recovery averaging above 50 per cent.

With global shipping costs increasing throughout 2021, the company responded through the delivery of
larger individual shipments and to take advantage of economies of scale.

As part of this strategy, New Century delivered its largest ever single shipment in December, which was
in excess of 31,000wmt of zinc concentrate.

“Over 2021, the company has delivered a consistent improvement to financial performance, culminating in a record $40.4m in quarterly EBITDA for metal produced,” managing director Patrick Walta said.

“Meanwhile, strong progress for expansion into in-situ operations has continued, with the commencement of early works programs at the Silver King Zn-Pb-Ag Mine and East Fault Block open pit, including ordering of long lead items such as the ball mill.

“Macro-economic conditions for zinc remain very strong, with the zinc price averaging $US1.51/lb
($US3,328/t) for the December quarter, up from $US1.36/lb in the previous quarter, and rising
further to $US1.65/lb ($US3,645/t) into January to date.

“The company continues to receive strong demand for its zinc concentrate, with all production forward sold under long-term frame contracts for the next 12 months.”