Polymetals to drive a phase-three drill program at Carpark

Polymetals Resources (ASX:POL) has planned a phase-three drilling program at the Carpark prospect, part of the Endeavor Mine main lode in New South Wales. 

Drilling is expected to begin during the June quarter of 2024. 

Carpark is located 150m to the south of the Endeavor Mine from which 32 million tonnes of ore has been mined to produce 91.8Moz of silver, 2.6Mt of zinc, and 1.6Mt of lead.

As previously reported, Polymetals, which has a market capitalisation of $44.92 million, recorded “significant” zinc anomalism and downhole electromagnetic survey results from the phase-two drill program that it says further strengthens the prospectivity of the prospect. pol

A total of 1,198m of reverse circulation (RC) drilling was conducted over Carpark, while geological observations in combination with semi-quantitative multi-element data indicated a buried sulphide source within the prospect to the immediate south of Endeavor’s main lode. 

Upon completing the Endeavor Mine Restart Study, Polymetals is continuing with mine optimisation and planning work in preparation for the restart of operations. 

Work completed so far has uncovered several potential additional ore sources, which will be incorporated into an updated mine plan. 

As Mining.com.au previously reported, improvements in lead, zinc, and silver prices, has strengthened the project’s economics. 

Silver is currently sitting at $41.73 per ounce, according to ABC Bullion, while lead and zinc have continued to increase at $3,380.92 and $4,381.94 per tonne, respectively. 

During the March quarter, Polymetals’ Endeavor project planning and pre-development expenditure amounted to $1.714 million. 

In its latest quarterly report, the company says it has initiated a process to arrange a suitable financing package to execute the mine restart plan. An independent third party technical due diligence study was completed by Australian Mining Consultants, as part of this process. 

Polymetals has engaged with selected international credit funds and financiers to evaluate potential debt facilities. 

Further, Polymetals and CBH Resources have been negotiating revised arrangements with respect to exchange of the current Endeavor Environmental Rehabilitation Bond — the last remaining condition before Polymetals is entitled to take full ownership of the project. 

The company says these negotiations are continuing and progress has been made, adding it is confident that it will be in a position to announce the material terms of the revised arrangements within the next two weeks. 

In the meantime, the existing arrangements between both companies will remain the same. 

As of 31 March 2024, the company had $378,000 in cash and cash equivalents at hand, according to its latest quarterly report. 

Write to Aaliyah Rogan at Mining.com.au   

Images: Polymetals Resources
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.