Polymetals Resources Ltd is on the verge of mine restart activities at the Endeavor Silver Zinc Mine in New South Wales, with commissioning to start in April and first ore processing expected in May 2025.
What’s more, the company is on track to deliver initial cash flow during the current quarter.
With this strong funding and expanding exploration and development progress aligned to plan, the company says it’s on track to become Australia's next silver and zinc producer.
Milestones achieved
During the March quarter, some key underground development milestones were met, including completion of the first production stope blast on the 775 Level and continued rehabilitation of access to the high-grade Upper North Lode.
First ore is being stockpiled underground in preparation for crushing and hoisting in May.
Ventilation upgrades and the commissioning of production drill rigs, loaders and other mobile fleet also progressed in line with the Mine Restart Plan.
On surface, critical refurbishment works progressed across the 1.2 million tonnes per annum processing plant, including repairs to SAG and ball mills and replacement of mill feed infrastructure.
Additional work included excavation of 20,000 cubic metres of solids from the process water dam, structural repairs, rubber lining of chutes and hoppers, and optimisation of site water management systems.
Strong balance sheet
Polymetals raised A$33.75 million through a placement and share purchase plan at A$0.80 per share, bolstering its balance sheet to support production and exploration.
Notably, the Board and management contributed A$295,000 to the raise, underscoring strong internal alignment with shareholders.
At quarter-end, the company held A$32.24 million in cash, with access to a further US$10 million in undrawn funding under an existing facility with Ocean Partners.
The workforce has grown to more than 120 full-time employees, supported by an additional 60 casual workers and contractors.
Headcount is expected to rise to around 200 as operations move to full production.
Near-mine drilling resumed at the Carpark Prospect, targeting a geophysical anomaly located within 300 metres of the existing resource boundary.
This area has shown overlapping high conductivity and chargeability responses, and recent RC drilling intersected zones of strong silicification, supporting the case for follow-up exploration.
Early results indicate potential for a southern extension to the Endeavor mineral system.
Three shallow RC holes drilled beneath a silicified zone exposed during dam clearing also returned encouraging alteration. At the end of the quarter, the first of four planned 600-metre diamond holes at Carpark was underway.
Regional exploration also advanced across the company’s 1,107 square kilometre Cobar Basin tenement package, with induced polarisation surveys scheduled for Q2 2025 to define new drill targets.
Historical data compilation and prospect prioritisation have identified multiple drill-ready and grassroots targets, including No. 4 Tank and Furney’s Tank Prospects, with geophysics, mapping and geochemistry to precede future drilling campaigns.
