Polymetals Resources has reached an operational milestone at its Endeavor silver-zinc mine in Cobar, New South Wales, reporting that the mine is now covering its operating costs from cash flow.
Since acquiring the Endeavor project on August 1, 2024, Polymetals has overseen a rapid and successful redevelopment, culminating in July’s concentrate production of 5398 dry metric tonnes (dmt) of silver-lead and zinc concentrates.
The company also confirmed a second concentrate prepayment with its offtake partner totalling $11.6 million. Zinc concentrate transport is expected to begin in mid-August, with the first ocean shipment scheduled for early September.
Polymetals executive chairman Dave Sproule said the achievement was a testament to the team’s efforts and a turning point for the mine’s future.
“Polymetals is proud to report the successful redevelopment of the Endeavor mine, now able to meet operating costs from cash flow within just twelve months of its acquisition – a huge and rewarding task,” Sproule said.
“With operations now self-sustaining, the focus shifts to optimising both mining and milling performance as we move to establishing a consistent long-term and profitable enterprise.
The ramp-up of operations remains on track, with week-by-week improvements reported. Meanwhile, development has progressed significantly on the Upper North Lode, a high-grade silver zone within the mine.
Access to the orebody has now been established on the 2 Drill level following ventilation upgrades and rehabilitation works. Mining is scheduled to commence this month, with two additional headings above the 2 Drill level already significantly advanced.
Sproule said the company is optimistic about the financial impact of tapping into the high-grade ore.
“The board is very pleased that the operation is meeting its outgoings and looks forward to the imminent commencement of mining the high-grade silver ore from the Upper North Lode which will significantly boost cash flows,” he said. “I continue to be excited with the potential long-term value to be unlocked from Endeavor.”
