Polymetals Resources Ltd (ASX:POL) has continued to deliver more ‘outstanding’ near surface, high-grade assays from its phase one drilling program at its Endeavor silver-zinc-lead mine in the prolific Cobar Basin, New South Wales, which the company confirms is a “significant metal endowment”.
Peak 1-metre high-grade intersections include 2,799 g/t silver, 13.3% zinc, 22.7% lead, 3.2 g/t gold and 7.4% copper.
The primary aim of the company’s drill program was to estimate the measured mineral resource contained within the unmined near surface of North Lode.
The secondary aim is to test the tenor and extent of mineralisation that remains in the remaining unmined South Lode.
Moving forward, all results generated by the phase one drilling will now be used to recalculate the mineral resource estimate (MRE), which is to be completed within the coming weeks.
The markets have welcomed the news with shares trading as high as $0.40, up 11.1% from previous close.
“Significant metal endowment”
Polymetals executive chairman Dave Sproule said: "Having secured the Endeavor Mine asset and now confirmed the significant metal endowment (now including gold) within the near-surface unmined mineralisation, Polymetals is in a most unique position as a junior company.
“Receipt of all assays allows a measured mineral resource to be re-calculated for the North and South lodes and an ore reserve estimate to be completed pending the conclusion of other necessary studies.
“Interrogation and remodelling of all historic mining information is planned during the coming months while the company maintains its core focus of building a significant ore reserve.
“We are also expanding capability via recruitment of experienced mine geology, engineering, and exploration professionals to ensure the company is well resourced to support the timely and much anticipated next chapter of operational life at Endeavor.
“The board is also to be reshaped in the near term to provide experience and guidance across all facets of the business.”
Forward plan
Polymetals plans to undertake the following activities at Endeavor:
- update mineral resource estimate, test flotation recovery and precious metal leach recovery, estimate ore reserve and conduct economic modelling, and drill further if needed;
- conduct diamond drilling for gold and copper targets in in-mine and near-mine exploration and explore deep zinc lode; and
- mine restart studies with a 10-year plan including metallurgical testwork, design of hydrometallurgical flow sheet, plan, design and schedule mine optimisation, and conduct resource extension drilling within the existing mine below a certain level.