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Ann: NCZ EXECUTES MAJOR LONG TERM ZINC CONCENTRATE OFFTAKES, page-69

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Berger978456

3,546 Posts.

373

07/03/18

11:06

Post #: 31583662
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Originally posted by schubp01 ↑

Folks... Here’s details on the pipeline and mill I posted a few months ago. The NCZ team have really done there research. The feasibility study allowed for repair works to the pipe and Ausenco has been awarded the contract to complete. Still very confident in this project.

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Hi Guys,

I queried the pipeline and mill condition. Here's the response from Patrick. The NCZ team have done an extraordinarily good job of due diligence on this project. Definitely undervalued at current share prices. I am going to top up my holding.

Can you tell me what condition the slurry pipeline to port is in. Typically the wall thickness of these pipelines is measured regularly and it is relatively easy to trend. Any bends and high velocity sections will tend to wear out first. I see that it has been operating for about 16 years and had a failure in 2009. I am guessing being underground it has cathodic protection. Are you seeing any wear or corrosion? The condition of the pipeline has been independently reviewed during the feasibility process (by the previous maintenance contractors). The cost of and schedule for minor refurbishment works on the pipeline have been accounted for in previously released capital cost and development schedules of the Restart Feasibility Study. Note that the pipeline was operating up until the beginning of 2016 and we anticipate it operating in much the same way when we restart later this year.

What condition is the mill in? Have you had it crack tested or inspected? Again the mill has undergone review during the feasibility process and Sedgman have outlined minor refurbishment works on both mills. Note that we currently only intend to operate one ball mill, however have elected to refurbish both for redundancy.

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Yeah I doubled down on NCZ yesterday and remain bulllish on both the project and certainly also the zinc price!
NCZ Price at posting: $1.28 Sentiment: Buy Disclosure: Held
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