Polymetals Resources (ASX:POL) has delivered its first quarter of positive free cash flow as operations continue to ramp up at the Endeavor Mine in New South Wales.
The company generated revenue of $45.8 million in the June quarter, marking a 65% increase from $27.8 million in the March quarter. Cash reserves rose by 27% to $29.1 million, while debt decreased by 29% to $10.7 million.
Quarterly recovery reached 396,485 ounces of silver (Ag), 3,268 tonnes of zinc, 2,061 tonnes of lead, and 490 ounces of gold (Au).
Polymetals reports underground exploration drilling in the Upper Main Lode returned some of its ‘best’ intercepts, including 96.6m @ 604 grams per tonne silver equivalent (AgEq), 48.4m @ 666g/t AgEq, and 68.1 @ 429g/t AgEq.
The company says these results confirm that extensive zones of silver-lead-zinc mineralisation remain intact adjacent to the existing mine development.
Polymetals has also maintained dual processing pathways for silver ore. For standard flotation, metal mix in ore determines the best processing path, while the direct shipping ore pathway targets ore grades above 500g/t Ag and 1g/t Au.
Meanwhile, production from the Upper North Lode will continue for 18 months, with the Upper Main Lode scheduled to come online within six to 12 months. The company expects to produce 2 million ounces of payable silver over the next 12 months.
Resource modelling for the Upper Main Lode is likewise underway, supported by 157 holes totalling 31,905m of drilling to date. Polymetals expects results in the coming months, followed by an updated reserve and mine plan.
The company also notes upcoming drilling will test four prospects — No. 4 Tank, Boundary Tank, Furney’s Tank, and Kiri — targeting gold, copper, lead, and zinc.
Polymetals Resources is a silver and zinc producer operating and expanding the Endeavor Mine in the Cobar Basin of NSW. It also owns 100% of the Northern Cobar Basin, holding 1,343km² of exploration tenure across 100km of strike length.
Write to Paula Fabe at Mining.com.au
Images: Polymetals Resources
