Polymetals Resources Expedites Plans to Restart Production at Endeavor Silver, Zinc and Lead Mine

Polymetals Resources Ltd (ASX: POL) how outlined revised arrangements to secure ownership and bring the Endeavor Silver, Zinc and Lead Mine closer to re-commencing production.

Endeavor is located near Cobar in New South Wales.

The importance of this progress is not just for the company, but the community in the area.

Bringing Endeavor back to production will create over 200 direct jobs and inject around $50 million a year into the region – for at least another 10-years.

There is also the potential to extend the mine life with exploration success and implementation of value adding treatment options.

The agreement

Polymetals has revised acquisition agreements and ancillary arrangements have been executed and agreed with CBH Resources Ltd.

The agreement is to defer exchange of the Endeavor Mine Rehabilitation Bond for up to 2 years at a cost of 2% per annum.

The new Endeavor Share Sale Agreement will deliver Polymetals ownership of Endeavor.

Polymetals is then positioned to proceed to finalise project financing and expedite mine restart activities, targeting production in the first half of 2025.

Hurdles overcome

Dave Sproule, executive chairman for Polymetals, commented:

“The Bond exchange has been a challenging hurdle to overcome in what had been a depressed market over the past 12-months.

“I would like to thank CBH and Toho for their continuing support of the company and our plans to return the Endeavor Mine to operation.”

Economics of Endeavor

The Endeavor Mine Restart Study was completed in October 2023.

Due to a recent rise in metals prices, the before tax net-present-value has increased to $278 million, from $201 million at the time of the study.

Also, in the positive, the internal-rate-of-return has grown to 131% from 91%, with the before tax free cash flow now $436 million, up from $323 million.

Endeavor is the second largest mine, behind the CSA Copper mine, in Australia’s richest polymetallic region known as the Cobar Basin.

Polymetals acquired the Endeavor Mine in 2023.

The mine operated continuously from 1982 to 2020 producing 32 million tonnes at 8.01% zinc, 5.04% lead and 89.4 g/t silver.

This delivered metal of 92 million silver ounces, 2.6 million tonnes of zinc and 1.6 million tonnes of lead.

 

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