ASX / Media Announcement

12 July 2022

onlyNew Century Delivers Strong June Quarter Production and Drilling Results

Highlights

Strong quarterly production results from Century operations:

31,699t of zinc metal produced during the June 2022 quarter, up 14% on March quarter

Full year revised production guidance achieved in mid-range, with 118,108t zinc metal produced

C1 costs expected to be mid-range of guidance of US$0.85/lb to US$0.95/lb (pending reconciliation)

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Advancements in the Century expansion:

Watson's Lode drilling, targeting increased Mineral Resource confidence and potential conversion to

a mineable Ore Reserve, has delivered exceptional shallow, high-grade drill intercepts:

o 7.0m @ 43.2% Zn + Pb from 66m (40.4% Zn, 2.8% Pb, 28g/t Ag) downhole

o 4.0m @ 26.4% Zn + Pb from 61m (20.3% Zn, 6.1% Pb, 5g/t Ag) downhole

o 7.5m @ 16.9% Zn + Pb from 134m (16.8% Zn, ≤0.1% Pb, ≤0.5g/t Ag) downhole

o 4.8m @ 13.7% Zn + Pb from 87m (13.6% Zn, ≤0.1% Pb, ≤0.5g/t Ag) downhole

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Watson's Lode remains open along strike, which is to be tested on conclusion of current program

(current Inferred Mineral Resource of 1.74Mt @ 9.7% Zn + Pb covers ~700m of known ~4km strike)

Lilydale prospect identified as a high potential target, with stratigraphy and structural setting similar to the original Century 'Big Zinc' ore body (drilling scheduled for September quarter)

Figure 1: Watson's Lode drilling intercepts above 3% Zn and >1m true width

  • At Mt Lyell, drilling continues to progress, targeting a further increase in confidence in the existing Mineral Resource base for input into the Pre-Feasibility Study (currently underway)

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Initial drilling to test and upgrade the Mineral Resource has been completed, including: o Collection of structural and metallurgical data; and
o Scoped and designed ground water monitoring bores Significant Intercepts include:
o 7.0m @ 43.2% Zn + Pb from 66m (40.4% Zn, 2.8% Pb, 28g/t Ag) downhole o 4.0m @ 26.4% Zn + Pb from 61m (20.3% Zn, 6.1% Pb, 5g/t Ag) downhole
o 7.5m @ 16.9% Zn + Pb from 134m (16.8% Zn, ≤0.1% Pb, ≤0.5g/t Ag) downhole o 4.8m @ 13.7% Zn + Pb from 87m (13.6% Zn, ≤0.1% Pb, ≤0.5g/t Ag) downhole
A 10km reverse circulation (RC) infill drilling programme has now commenced, targeting an upgrade of existing Mineral Resources and potential Ore Reserve generation
Current Watson's Lode Mineral Resource covers ~700m of a ~4km host structure strike extent
We look forward to providing complete production and financial results for the June quarter following the mine-to-portreconciliation process."
The Company is excited by the opportunity presented to develop a mineable Ore Reserve at Watson's Lode and the surrounding exploration potential of the Lilydale prospect. Systematic exploration in this area and further resource delineation is planned for the remainder of 2022, with the aim of extending the planned mine life at Century to 2030 and beyond.
"New Century has delivered the strongest quarterly production since June 2021, producing 31,699t of zinc metal to achieve its revised 2022 financial year guidance.

Century Quarterly Production Update

New Century Resources Limited (New Century or the Company) (ASX: NCZ) is pleased to provide an update on the quarterly production and exploration activities at the Century Mine in Queensland.

onlyManaging Director, Patrick Walta said:

useWatson's Lode Drilling Update

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Figure 2: Perspective of the Watson's Lode veins, looking to the south-west, and close-up of the lode near

Watson's Shaft, showing the quartz vein with abundant cavities after sphalerite and carbonate.

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For personal use only

Table 1. Watson's Lode significant intercepts

Hole #

Intercept (m)

Est. True width (m)

Depth

Element Grades

Zn%

Pb%

Ag g/t

WLD22_05

4.8

2.4

87

13.6

0.1

0.5

WLD22_06

2.2

1.1

116.2

11.3

0.9

5

7.5

3.25

133.7

16.8

0.1

0.5

2.9

1.45

187

4.8

0.6

6

WLD22_08

3.4

1.7

34.2

10.2

0.05

5

2.8

1.4

51.8

9.1

2.9

11

3.1

1.5

74.4

4.3

0.05

5

WLD22_13

2

1

81

3.1

0.05

0.5

WLD22_14

No significant intercept

WLD22_15

2.1

1.6

56.1

3.7

0.7

0.5

WLD22_19

No significant intercept

WLD22_20

5

1.7

62

9

0.05

0.5

WLD22_21

2.1

1

89.8

23.8

1.7

12

WLD22_22

4

2

61

20.3

6.1

5

WLD22_24

40.4

2.8

28

7

3.5

66.3

Figure 3: Hole WLD22_24 showing massive sphalerite mineralisation (honey colour) within the interval

66.3m - 73.3m grading 40.4% Zn

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Figure 4: Lilydale prospect area (right) relative to Century Tailings operation (left) Annotated zoom of
prospect area geology (modified from https://georesglobe.information.qld.gov.au)
Century
hanging wall
EPM10544
Silver Star

Lilydale Prospect

The Lilydale prospect sits adjacent to and stratigraphically above the Watson's Lode vein and targets the younger Century host sequence. The area has a similar cluster of veins to those around the original

onlyCentury 'Big Zinc' deposit. These veins are considered a potential feeder within the larger system.

Historic geochemical anomalies of zinc, lead, and manganese have been identified in the surrounding soil plains which may indicate the presence of additional economic mineralisation beyond the known veins.

Drilling at Lilydale aims to intersect the Century stratigraphy proximal to the Watson's Lode and Lilydale structures, to gain insights into the relative timing of the vein forming events and the fertility of the Century host unit locally.

The potential of the area is considered analogous to the satellite Teena deposit (58Mt @ 11% Zn, 1.6% Pb)1 relative to the larger HYC (McArthur River) deposit (227 Mt @ 9% Zn, 4% Pb, 40g/t Ag)1.

The Company plans continued drilling across the historic vein field seeking incremental and value accretive sources of feed, in addition to the planned Silver King mine.

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A

Watson's Lode

Century Tailings

For personal

Lilydale

A

Prospect

Century

footwall

Century host

ML90058

rocks

  • https://www.researchgate.net/publication/353381064_The_Teena_Zn-

Pb_Deposit_McArthur_Basin_Australia_Part_I_Syndiagenetic_Base_Metal_Sulfide_Mineralization_Related_to_Dynamic_Subbasin_Evolution

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New Century Resources (ASX: NCZ) | ASX/Media Announcement | newcenturyresources.com
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Figure 6: PLF040 tray 57. Silica / pyrite / chalcopyrite / sericite alteration zone (assays pending)
Figure 5: Prince Lyell & Western Tharsis deposits, which are the focus of restart activities at Mt Lyell
Current Mt Lyell
Drilling area
New Century has continued drilling at Mt Lyell during the quarter, with successful intersections of the mineralised zone within the Prince Lyell ore body. Assays remain pending on this drilling.
onlyMt Lyell drilling is targeting improved confidence in Mineral Resources to enable conversion of Ore Reserves for further upgrade of feed into the mine plan.
For usepersonal
Mt Lyell Drilling

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New Century Resources Limited published this content on 11 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 July 2022 00:03:04 UTC.