New Century Resources say overall zinc metal output has increased by 12% during the June quarter, despite an unscheduled glitch in operations of one of the mine cleaners, which is out of action for three months.
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New Century told the ASX last week it had produced 20,450t of zinc metal in 42,500t of concentrate grading 48.1% zinc up from 37,500t at 48.3% zinc during the March quarter.
"Expansion to three hydraulic mining cannons was the main focus of June quarter ramp up activities, with the third cannon and associated infrastructure commissioned and operational from May," the company said.
New Century said that with two of three cannons online early April operations achieved up to 55% recovery at a 6Mtpa mining rate improving on the 50% average achieved for the month of March but overall quarterly recovery performance was hampered in late April and May by instability during commissioning of throughput expansion under three cannon operations and identification of a bottleneck through one of the cleaners.
"Importantly, the operations achieved a strong exit rate to the quarter, with the recovery growth trend re-established during June and results up to 48% recovery achieved in July to date," New Century said.
They said the bottlenecked cleaner was scheduled to be online in early August allowing further recovery improvement for 8-9Mtpa operations, the scheduled Phase 1 mining rate target.
The remainder two cleaners will also be brought online in August, allowing for operations at 12Mtpa throughput in financial year 19/20.
New Century said average mined grade during the quarter was 2.92% zinc, which it said "reconciles strongly" with the ore reserve model and mine plan.
The Company aims to fund the $40 million expansion to 12Mtpa out of existing cash reserves, an undrawn conditional debt facility and cashflow from operations.
New Century is exporting zinc concentrate from the Queensland operation to smelters in China, Europe and across Australia.
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
