Thumbs up for value in new Century mining operations

Feasibility work has demonstrated a 'compelling value proposition' for mining the Silver King and East Fault Block deposits at the Century site, New Century Resources says. A final investment decision is expected early next year, allowing the progression to first processed ore in the first quarter of 2023. The new sites could be brought online for $66.7 million and would reduce Century-wide C1 costs by $US0.21/lb payable zinc. New Century acquired the Century mine in 2017 and restarted operations through the reprocessing of the large tailings ore reserve on the site. The recent feasibility study investigated the incorporation of Silver King and East Fault Block in-situ deposits into the existing mine plan to produce zinc concentrate and a new lead concentrate. It found attractive economics, with a pre-tax NPV of $234 million with expected payback within two years at current spot prices (NPV of $212 million on base case). The new mining operations have an average lead metal (in-concentrate) output of 33,000tpa, containing 972,000oz pa silver, and average additional zinc metal (in-concentrate) production output of 22,000tpa. The initial mine development would focus on Silver King underground, with Silver King open cut and East Fault Block open pit mining commencing development in later years. The company has also released an upgraded mineral resource for Silver King and East Fault Block deposits of 4.4Mt at 4.8 per cent lead (209kt), 5.4 per cent inc (234kt), 47g/t silver (6.6Moz), and a maiden ore reserve of 2.5Mt at 5.3 per cent lead (133kt), 5.6 per cent zinc (140kt) and 68g/t silver (5.4Moz). New Century said the ore reserves extended Century mine life to 2027, with a clear pathway to mine life extension to 2030 and beyond through the potential at the Watson’s Lode and South Block deposits and further Silver King extensions. "The focus of the next phase will be to commence front-end engineering design (FEED) work to optimise the processing plant construction and refurbishment, mining schedules and additional operational readiness activities to allow development of an executable plan to gain a final investment decision," the company stated in an announcement to the market today. "Several options to reduce capital will be investigated during the early works program, including the overall contracting strategy, sale and lease back (of New Century’s existing mining equipment) and Build, own and operate (BOO) / Build, own, operate and transfer (BOOT) arrangements for front-end crush/grinding equipment. "Securing all required permits and approvals is estimated to take three to six months, with this process already well progressed. "The critical path includes sourcing of the ball mill, with it being scheduled to be ordered by the end of CY2021. "A final investment decision and updated execution schedule is expected in Q1 CY2022, allowing a progression to first processed ore in Q1 CY2023."

Thumbs up for value in new Century mining operations

Industry Queensland

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