Ann: Quarterly Activities Report, page-15

Credit Suisse|PLUS
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NCZ.AX: New Century Resources - MarQ solid, JunQF stronger: process proven April 29, 2019 Click here to view document (7 pages, 511KB) Date of Production: 28-Apr-2019 10:49:52 PM UTC Date of Dissemination: 28-Apr-2019 10:51:17 PM UTC MarQ key numbers pre-released on April 11 Continued plant performance ramp up:MarQ averaging 50.4% zinc recovery and peaking at 54%, 86% of the design target, despite plant optimisation and recovery improvement initiatives yet to be commissioned. Planned MarQ upgrades delayed to JunQ by N Qld floods, so MarQ recovery achievement delivered by operator experience, not plant enhancements MarQ production up 50.5%:18.17Kt Zn in 37.5Kt of concentrate at 48.3% Zn, up on DecQ 12.08Kt Zn in 25.5Kt of concentrate at 47% Zn on 8% less zinc mined (reflecting wet season impact). Reconciliation remains strong. 3rdmining cannon commissioned postMarQ to deliver a step rate increase in mining rate to >8Mtpa and up to 10Mtpa to provide much need stable plant feed, allowing a further increase in recovery by plant and reagent optimization. Up to 7.3Mtpa rate achieved with 2 cannons (not sustainably) Recovery enhancement initiatives to deliver higherJunQ recovery from higher and stable tonnage; launder sprays to break down zinc rich froth, a portion of which is reporting to tailings; reagent optimization on stable plant feed. Numerous optimization project progressing. Concentrate quality continues to improvesignificantly with Pb decreasing 25% to 5.6% from 7.5% in DecQ18 (target 1.2-3%) and silica averaging 6.9% (target 5-7.5%). MarQ impurity penalty a trivial US$6.80/t on silica. TC US$245/t < US$245 2019 benchmark, indicating JunQ higher Op cash -A$6.8mn on delayed Zn shipment. A$12mn capital project spend. Progress toward nameplate recovery expected JunQ19. SepQ19 should see major recovery enhancements commissioned and operating for the full Q 15Mtpa mining rate targeted by end CY19via commissioning of all 5 hydraulic mining cannons while plant capacity is to double through additional floatation cell refurbishment. Expansion PFS on in-situ mining due JunQ. Management call 11am TODAY Mon Apr 29. 1800 123 296. ID: 4283138.