Name of the Project
Century zinc mine project.

Location
The Century zinc mine is located in North West Queensland, Australia.

Client
New Century Resources.

Project Description
The project aims to restart operations at the mine, which has proven ore reserves of 77.3-million tonnes at 3.1% zinc equivalent for the mine’s tailings deposit.

The results of the restart feasibility study have concluded that the Century mine will again be one of the top ten zinc operations in the world, with steady-state production forecast at 507 000 t/y of zinc concentrate at 52% zinc over an initial 6.3-year mine life from only the Century tailings deposit.

The deposit will be mined using hydraulic mining methods. At a capacity of 15-million tonnes a year, this process will involve the use of five track-mounted monitor units, four actively working individual faces throughout the deposit and one on standby.

Minor modifications will be made to the existing Century mine processing plant so that it can process reclaimed tailings slurry at a design throughput of 15-million tonnes a year. This includes the installation of an additional seven 100 m³ float cells and four regrind mills during the first 15 months of operations.

Operation of the mine and plant will take place in stages for the systematic expansion of hydraulic mining operations.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at an 8% discount rate, of A$1.31-million and an internal rate of return of 270%.

Value
Start-up capital costs are estimated at $50-million.

Once in production, further ramp-up capital of A$63-million will be invested over a 15-month period for a total capital requirement of A$113-million to bring the operation into full production at 15-million tonnes a year. Ramp-up capital is proposed to be funded from operational cash flow.

Duration
First production is expected in the third quarter of 2018.

Latest Developments
New Century Resources has secured up to A$100-million in working capital facilities from investment firm Varde Partners, as the company restarts its Century zinc operations.

The funding will comprise a A$60-million secured facility, which has been approved and is available for drawdown, and a A$40-million unsecured facility, which remains subject to performance hurdles.

The A$60-million senior debt has a two-and-a-half-year term and carries a yearly interest rate of 8%, while the junior debt has a three-year term and carries a yearly interest rate of 10%.

While the company has made strong progress in the ramp-up to date, the New Century board has determined that the additional working capital is a prudent measure to ensure that the company maintains a strong cash buffer to complement the growing cashflow from concentrate shipments.

Key Contracts and Suppliers
Sedgman (EPC contractor and operations and maintenance contract), Ausenco (preferred bidder for the complete refurbishment and commissioning of operations associated with the Century zinc processing plant, slurry pipeline and Karumba port facility).

On Budget and on Time?
The project is on track to restart production by the third quarter of this year.

Contact Details for Project Information
New Century Resources, tel +61 8 6142 0989 or email info@newcenturyresources.com.