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New Century Resources has achieved a 22 per cent increase in zinc metal production at the Century operation in the June quarter, reaching about 34,500 tonnes.

Along with an estimated 17 per cent decrease in direct costs, it has seen the company declare commercial production at the North West Queensland operation.

During the quarter, the company has also completed the successful transition from contractor services to full owner-operator in its hydraulic mining and processing plant operations.

“Despite the COVID-19 pandemic, operations at Century continue to ramp up and have again delivered record production in the June quarter,” managing director Patrick Walta said.

“Century has now achieved seven consecutive quarters of increasing production and lowering costs, and the company remains focused on continuing this trend.

“We are pleased to declare commercial production at the operation, with the Century Mine now re-established as a Top 10 zinc producer just 3 years since being shutdown for closure.

Despite the zinc price remaining near four-year lows, Mr Walta said a strong decline in spot treatment charges in the past few months had improved conditions for zinc miners.

“The company also sees potential for a price rebound due to additional metal demand from increased global infrastructure development linked to COVID-19 government stimulus,” he said.

New Century is continuing to progress due diligence for the potential acquisition of the Goro nickel and cobalt mine.

It is completing negotiations for the provision of suitable funding from Vale and the French State for both simplification process capex and long term working capital for the operation.

New Century expects to release full quarterly reporting and further details on the Goro process in the second half of July.