Polymetals Resources Ltd (ASX:POL) is maintaining a rapid pace with redevelopment and restart activities in central New South Wales as part of its stated intention of “making the Endeavor Silver-Zinc Mine great again”.
This work sees the company on track to resume production from the operation northwest of the mining town of Cobar early next year with first cash flow scheduled during the first half of 2025.
The mine operated continuously for 38 years before being placed on care and maintenance in 2020 and during this period, 32 million tonnes of ore was mined and processed recovering saleable metal in concentrate valued at more than A$18 billion at today’s metal prices.
The growing site team at the 0600 morning meeting.
Gaining pace
Polymetals Endeavor Mine general manager Matt Gill said: “Activity on site is gaining pace as we continue with our aggressive recruitment campaign.
"We have secured our senior leadership team, are assembling a great group of supervisors and are building our operations and maintenance workforce in accordance with the proven Polymetals operational strategy.
"This momentum builds with the arrival of the first underground mobile equipment before Christmas, and in parallel, we have a very experienced team working on the surface infrastructure and processing plant to bring them back to life in the New Year.”
About the mine
The high-grade Endeavor silver-zinc-lead mine is within one of Australia’s premier polymetallic mineral provinces, the Cobar Basin, and in proximity to other mining operations.
Polymetals acquired the mine in 2023 after resetting a prohibitive 100% silver streaming royalty to a 4% NSR over silver, lead and zinc. Restructuring this royalty provides new life to the mine with Polymetals now executing on its initial 10-year mine plan.
Inspecting historic levels in the Upper Main Lode in preparation for mining activities.
The company last month concluded a US$20 million loan facility with Ocean Partners and is fully funded to complete refurbishment activities.
READ: Polymetals Resources primed to re-start the Endeavor mine with a US$20 million loan facility
Redevelopment work is progressing safely, efficiently and to plan and this progress has resulted in strong recent upward movement in the company’s share price.
From 24 cents on September 4, the price has climbed to a record 91 cents in recent weeks and this morning, following the latest update, shares have been as much as 10.53% higher to 84 cents.
Site establishment
With site establishment work which began in August 2024, Polymetals has completed the following:
- The identification and implementation of the necessary safety, training, environmental and accounting systems;
- Recruitment of senior management;
- Improvement and allocation of housing and unit accommodation;
- Recruitment, onboarding and training of various staff roles; and
- Operational readiness with a focus on site offices, workshop and change room facilities.
Surface work
Refurbishment and re-certification of headframe gantry crane.
Surface refurbishment work began in October with the following key areas completed or underway:
- Structural audit;
- Electrical audit;
- Clean-up of surface infrastructure;
- Re-energizing electrical site systems;
- Replacement of winder ropes for shaft haulage;
- Refurbishment and re-certification of gantry cranes and hoists;
- Modification of the mine portal entrance to allow access for larger 65-tonne trucks; and
- Inspection and refurbishment of ventilation fans and replacement of foundations.
Refurbishment of vent fan No. 5 including sealing and replacement of foundations.
Underground work
Polymetals began underground readiness work last month with areas of work underway or completed including:
- Ground support rehabilitation works on an underground electrical substation;
- Underground mine decline and access LIDAR survey;
- General underground clean-up;
- Check scaling program commenced on all mine access areas;
- Clearing redundant services;
- Access and early stope identification;
- Preparing storage areas for mining logistics; and
- Planning well underway for mine development rehabilitation works.