Perth, Oct 5, 2017 AEST (ABN Newswire) - New Century Resources (
ASX:NCZ) has released a number of strong announcements in the past couple of months relating to their Century Zinc Mine in Queensland.
Highlights include:
- Resource upgrade - 79Mt at 3% Zn, 12g/t Ag (100% measured);
- Metallurgical recoveries - zinc recoveries of up to 64%;
- Project ownership - 100% ownership (previously 70%);
- Re-start study - due 4Q17 ; and
- Historical South Block drilling - multiple broad high-grade intercepts identified as an extension of the Century ore body - 26.4m at 8.1% Zneq. & 21.6m at 9.9% Zneq.
Analyst comment: Since listing just over two months ago, New Century has been one of the best performing stocks on the ASX, as their share price has risen from $0.34/share (SP when TSI initiated coverage) to currently be trading at $1.20/share. This is not surprising given the strong and continuous news flow released by company, as well as the zinc price reaching decade long highs of more than US$3,300/t (US$1.50/lb).
Given these announcements we reviewed and updated a number of our key assumptions, including our throughput rate (12Mtpa - TSI), zinc recoveries (60% - TSI) and head grade (3%Zn - TSI) assumptions, which increases our forecasted production to 216,000tpa of zinc metal per annum. At this production rate the Century mine would become the sixth largest zinc operations globally (2016 annual production - SNL).
The information in this email should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.
Valuation: We have increased our valuation for New Century Resources $3.03/ share.
To view the video, please visit:
http://www.abnnewswire.net/press/en/90253/NCZ
About New Century Resources Ltd
New Century Resources Limited (ASX:NCZ) is an Australian base metal producer operating the Century Mine in Queensland with the aim of becoming one of the world's top 10 zinc producers.
New Century acquired the Century Mine when it ceased production in 2016 and has executed an economic rehabilitation plan comprised of upgrading the mine's existing world-class infrastructure. This rehabilitation was completed in August 2018 when the mine successfully entered production.
New Century Resources is initially focusing on the existing ore reserves to produce zinc in the lowest cost quartile globally. Substantial mineral resources exist on the mining leases which will provide a significant opportunity for mine life extension and metal production increases from the mine's operations.
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