Global zinc prices have been depressed for several years now, which have created a shortage of zinc.
Not only has the shortage increased the zinc price, but Polymetals Resources (ASX:POL) Executive Chairman David Sproule says: “That does two things. One, the increasing zinc price significantly complements the financial aspects of the restart of the Endeavor Mine. But secondly, what happens with shortage of supply of zinc is that global smelters or any base metal concentrate for that matter, when there’s a shortage of supply, they reduce their treatment charges and the treatment charges make up a very large portion of your input costs.”
Strengthening zinc prices, coupled with silver adds significant momentum to Endeavor’s near-term operational recommencement.
The first three years of planned production at Endeavor includes mining the high-grade silver ore from the Upper Main Lode which contains +5.1 million ounces of silver.
