AI assistant
POLYMETALS RESOURCES LTD — Capital/Financing Update 2023
Jun 15, 2023
65598_rns_2023-06-15_b46f25ee-1fee-47b5-a9ed-e85b51819ff6.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
ASX Announcement
ASX: POL
==> picture [122 x 73] intentionally omitted <==
16 June 2023
ENDEAVOR MINE RESTART STUDY IN FULL SWING
HIGHLIGHTS
-
Endeavor Mine Restart Study underway
-
Appointment of Endeavor Mine Site Representative
-
Mine Restart Study targeted completion 4th Quarter 2023
Following a recent site visit, Polymetals Resources Ltd (ASX: POL ) (“ Polymetals ” or the “ Company ”) is pleased to announce an update on its progress focussed on the recommencement of mining operations at its Endeavor zinc-silver-lead Mine located in the Cobar Basin, NSW.
SITE VISIT
The Polymetals Technical team and two Board members visited the Endeavor Mine during 8[th] to 14[th] June to formally settle planning and commencement of an Endeavor Mine Restart Study (MRS).
==> picture [451 x 286] intentionally omitted <==
==> picture [336 x 39] intentionally omitted <==
----- Start of picture text ----- Polymetals Team Members (L to R): Jason Creighton (COO), Dave Sproule (Executive Chairman) TroyLowien (GM Geology and Study Manager), Mike Garman (Regional Exploration) and Matt Gill (Non-Executive Director)----- End of picture text -----
Polymetals Resources Ltd | ACN 644 736 247 | Unit 1, 101 Main Street Alstonville NSW 2477 AUSTRALIA
ASX Announcement
ASX: POL
==> picture [122 x 73] intentionally omitted <==
Mine Restart Study
Polymetals’ detailed due diligence, reset of the Endeavor Mine Silver Streaming Royalty, drilling of the Upper Main Lodes (UML) and its internal scoping study provided a compelling business case for the Company to acquire the Endeavor zinc-silver-lead Mine with the aim of re-establishing operations (refer ASX announcement dated 28[th] March 2023).
In progressing this aim, a Mine Restart Study (MRS) has now formally commenced, and which takes full advantage of the extensive existing infrastructure, the internal and external studies generated by the previous mine owner and operator CBH Resources, as well as actual historical capital and operating costs. Existing mine and processing modelling will be reviewed and adjusted for the latest consensus metal prices, inflation, and labour conditions now prevalent across all industry. It is anticipated that the longest lead item will be metallurgical test work to be carried out on the UML mineralisation which is focussed on maximising silver and gold recovery from this high value material.
The planned MRS extends beyond potential mining of the Upper Main Lodes to also include existing areas within the mine which includes the 6 – 6 Stope, the Deep Zinc Lode, unmined stopes, North Pods and remnant mineralisation now economic due to the Silver Streaming Royalty Reset (refer Figure 1 and Table 1). Planned near term exploration within the mine includes gold and copper occurrences noted within the very large assay data set (approximately +402,000m of historic drilling) reviewed during Polymetals due diligence prior to the acquisition of the project.
Appointment of Polymetals Endeavor Mine Site Representative
Polymetals has appointed Mr David Pelchen as its Site Representative at the Endeavor Mine.
Mr Pelchen is a highly experienced production focussed Mining Engineer with prior involvement in numerous projects within Australia, New Zealand, China, Indonesia, and Kazakhstan. Mr Pelchen was previously General Manager & Mine Engineering Manager at Peak Gold, Mine Manager at Snowy River (NZ) and Hillgrove, General Manager at Henty, Hill End and Mineral Hill and Underground Manager at the Telfer Gold Mine. He also previously worked for 5 years (1983 – 1987) at the Endeavor Mine during which time the high-grade silver and gold south Upper Main Lode was mined.
Mr Pelchens’ experience extends to management and supervision of underground mines representing both mining contractor and mine owner. He has recently specialised in change management, initiating productivity improvements and safety practices as well as directing studies for mine development and restarts.
Mr Pelchen is a practising and certified Mine Manager (holding first class tickets in NSW and WA) and will be site based at Endeavor and an active participant in the Mine Restart Study.
Polymetals Resources Executive Chairman, Dave Sproule said,
"It is pleasing that we are now fully resourced with a competent and experienced technical team and Board which provides the Company with its best opportunity to advance the Mine Restart Study and bring the Endeavor Mine back on line.
2
ASX Announcement
ASX: POL
==> picture [122 x 73] intentionally omitted <==
Given Endeavor’s 38 years of operational history, our familiarity of the Cobar Basin and long-term relationships within the region, I am very confident that we will achieve a positive result from the Mine Restart Study now well underway.”
==> picture [494 x 581] intentionally omitted <==
Figure 1: Long section of Endeavor Mine - Initial Areas of Focus
3
ASX Announcement ASX: POL
==> picture [122 x 73] intentionally omitted <==
This announcement was authorised for release by the Polymetals Resources Ltd Board.
For further information, please contact:
Dave Sproule John Haley
Executive Chairman
Chief Financial Officer / Company Secretary
[email protected] [email protected]
ABOUT POLYMETALS
Polymetals Resources Ltd (ASX: POL) is an Australian mining and exploration company with a project portfolio with significant potential for the discovery and development of both precious and base metal resources. With our cornerstone asset the Endeavor Silver-Zinc-Lead Mine, Polymetals is seeking to become a long term, consistent and profitable base and precious metal producer. Polymetals holds a strong exploration portfolio for organic growth, are development driven and continually measure strategic acquisition opportunities. POL is committed to developing genuine long-lasting relationships within our community, building strong relationships with investment partners, local stakeholders and providing our shareholders with capital growth and dividends. For more information visit www.polymetals.com
COMPETENT PERSON STATEMENT
The information supplied in this release is based on information compiled by a team led by Mr Troy Lowien, a Competent Person who is a Fellow of the Australian Institute of Mining and Metallurgy. Mr. Lowien is an Executive of Polymetals Resources Ltd and has sufficient experience to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Lowien consents to the inclusion of matters based on information in the form and context in which it appears.
Table 1: Endeavor Mine – Total Mineral Resource – May 2023[1]
| JORCCategoryMtNSR ($/t)Zinc %Lead %Silver g/t | Zinc MtLead MtSilverMoz |
|---|---|
| Measured4.4$3078.3%5.1%93 | 0.370.2213.2 |
| Indicated8.8$2787.9%4.6%82 | 0.700.4023.2 |
| Inferred3.1$2517.7%3.7%78 | 0.240.117.8 |
| Total216.3$2818.0%4.5%84 | 1.300.7344.0 |
1 Reported using a NSR cut-off value of A$190/t above 10080mRL and A$150/t below 10080mRL.
2 Discrepancies may occur due to rounding.
Refer ASX announcement 23[rd] May 2023.
4