Polymetals Resources (ASX:POL) has bolstered the JORC 2012 Mineral Resource Estimate (MRE) of its Endeavor Mine in New South Wales following a recent near-surface drilling program.
The company says the updated MRE now contains increased measured and indicated resources for the combined North and South Lodes, located above the 10040mRL or within 180m of surface, and represents a ‘compelling’ near-term cash flow opportunity.
The drilling work increased the contained silver by 2.9 million oz (48%) (Moz) to 8.9Moz within the Upper Main Lodes, an area inclusive of measured and indicated resources, with 55% within the measured category (an increase of 67%) and 94% in both the measured and indicated categories.
Polymetals notes a ‘significant’ increase to the silver grade and resource category has also been estimated and demonstrates further potential to expand the near-surface resources.
The new Endeavor Mine MRE now sits at 818,000 tonnes @ 7.1% Zn, 5.1% Pb, and 338 grams per tonne (g/t) Ag to contain 58,078 tonnes of Zn, 41,718 tonnes of Pb, and 8.9Moz of Ag.
Polymetals Resources reports the updated MRE comes in conjunction with an ongoing feasibility study that has been designed to aid in the restart of operations at Endeavor.
The company also notes the updated MRE has led to an increase in confidence for the establishment of ore reserves as the mine restart feasibility study progresses.
With the feasibility study ongoing, Polymetals Resources announces it has moved forward with plans to undertake an underground drilling program in order to generate geotechnical and metallurgical samples, as well as further gold analyses, to enable gold to be included in the MRE.
All data generated is also expected to provide sufficient information to further support the feasibility study, with feasibility work scheduled to be completed in Q4 2023.
Commenting on the updated mineral resource, Polymetals Resources Executive Chairman Dave Sproule says: “We are systematically progressing work on various fronts at Endeavor, and now, with the significant near-surface metal endowment confirmed by recent drilling and independent Mineral Resource Estimate, we can continue our planned work streams with much greater confidence.
“…with the significant near-surface metal endowment confirmed by recent drilling and independent Mineral Resource Estimate, we can continue our planned work streams with much greater confidence.”
What is becoming evident is that the Endeavor project may evolve in two stages, with the near-surface high-value resources potentially delivering a first-stage low-entry-cost mining program with cashflow applied to funding the anticipated +10-year mining operation.”
Polymetals Resources is an ASX-listed mining and exploration company with a project portfolio that has ‘significant’ potential for the discovery and development of both precious and base metal resources. The company is seeking to become a long-term, consistent and profitable base and precious metals producer through the aid of its cornerstone Endeavor Silver-Zinc-Lead Mine in NSW.
The asset is located in the Cobar Basin, north of the township of Cobar in central-west NSW, about 30km north of the CSA Copper Mine, and was first discovered in 1974 before mining and processing operations began in 1982.
Images: Polymetals Resources Ltd
