Polymetals Resources Ltd (ASX:POL) recently acquired the Endeavor Silver-Zinc-Lead Mine in Cobar Basin, New South Wales, which has the potential for near-term cash generation by extracting shallow high-grade silver, zinc, lead and gold.
The Endeavor portfolio is a significant asset independently valued at more than $150 million including underground mine, processing facility infrastructure and Cobar real estate.
Polymetals acquired the asset for about 7% of its $150 million valuation via the issue of 52 million Polymetals shares to Orana Minerals shareholders at $0.18/share (valued at $9.36 million).
The acquisition of the Endeavor Project has provided Polymetals with:
- 16.3 million tonnes lead, zinc and silver JORC Code (2012) compliant resources within the Endeavor project mining leases;
- an opportunity to capitalise on decades of Cobar Basin exploration, mine development and production experience by its various team members;
- enhanced ore reserve potential by the restructuring of the existing silver streaming royalty; and
- jurisdictional and commodity diversification (and associated risk-reduction benefits) for the company and its shareholders.
Endeavor mineral resources.
Polymetals has already received the first batch of assays from its 21-hole reverse circulation (RC) drilling program at Endeavour.
The phase one program - completed on March 5 - returned “significant intercepts of high-grade mineralisation”, which Polymetals said was a key factor in determining the near-term strategy for the project.
High-grade mineralisation with zinc equivalent grades between 11% and 32% was returned over widths from 8 metres to 81 metres at the operation, which is currently under care and maintenance.
Next steps
- Establish sufficient Ore Reserves to support recommencement of operations;
- Assumed lead time 18-24 months targeting initial 5-year mine life.
- Initial development focus on North Lode, 6-6 Stope and Deep Zinc Lodes.
- Addition of leach circuit to existing processing plant to recover further silver and gold.
- Extending Deep Zinc Lode resources (open along strike and at depth).
- Delineating in-mine gold rich zones on the margin of high-grade lead/zinc mineralisation
- Testing of known near-mine and regional exploration targets (regional exploration JV contemplated).
- Zinc and precious metals recovery from stored tailings.
Endeavor Mine headframe (March 2023).