Polymetals Resources Ltd (ASX:POL) is increasingly confident about restarting operations at the Endeavor Silver-Zinc-Lead Mine in Cobar Basin, New South Wales, following a resource update that includes a 48% increase in contained silver to 8.9 million ounces in the mine’s Upper Main Lodes.
The increase, the result of recently completed near-surface drilling aimed at establishing sufficient ore reserves to support the mine restart, has also improved the silver grade by 31% and tonnage by 13%.
About 55% of the resources within the Upper Main Lodes is in the measured category, an increase of 67%, while 94% is in the measured and indicated category.
A JORC-compliant mineral resource estimate (MRE) for the Upper Main Lodes has been completed using the results, and included in Endeavor’s MRE.
Upper Main Lodes MRE.
“Greater confidence”
POL believes there is still potential to expand resources near the surface, although the latest MRE is sufficient to provide a very strong starting point for the generation of an Upper Main Lodes ore reserve.
Polymetals Resources executive chairman Dave Sproule said: "We are systematically progressing work on various fronts at Endeavor and now with the significant near-surface metal endowment confirmed by recent drilling and independent mineral resource estimate, we can continue our planned work streams with much greater confidence.
“What is becoming evident is that the Endeavor project may evolve in two stages, with the near-surface high-value resources potentially delivering a first stage low entry cost mining program with cashflow applied to funding the anticipated +10-year mining operation.”
Endeavor Mine total mineral resource.
Next steps
Underground drilling is being planned to generate geotechnical and metallurgical samples as well as further gold analyses to include the yellow metal in Endeavor’s MRE.
The data generated will provide sufficient information to support a feasibility study focused on the recommencement of operations at the mine.
The feasibility work on the Upper Main Lodes is targeted to be completed in the fourth quarter.
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