- 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.
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About New Century Resources Ltd
New Century Resources Limited (ASX:NCZ) is developing the Century Zinc Mine in Queensland. The Company recently released a Feasibility Study which highlighted that when production recommences at the project (forecast 3Q18) the operation will produce 264,000tpa zinc metal per annum making the company a global top ten zinc producer. The company is fully funded to first production.
About The Sophisticated Investor
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New Century Resources Ltd