Polymetals Resources (ASX:POL) Nearing Production Restart at Endeavor Silver-Zinc Mine with Q2 2025 Milestone in Sight

Highlights

• Mine Restart on Track: Commissioning at the Endeavor Silver-Zinc Mine scheduled for April 2025, with ore processing to begin in May.
• Strengthened Financial Position: Over A$32 million in cash with additional US$10 million funding access secured for production and exploration.
• Exploration Expansion: Near-mine and regional exploration activities intensify with promising geological targets identified across the Cobar Basin.

Polymetals Resources Ltd (ASX:POL) is advancing toward a pivotal moment in its growth trajectory as it approaches the restart of operations at the Endeavor Silver-Zinc Mine in New South Wales. The company remains firmly on schedule with commissioning planned to begin in April 2025 and initial ore processing targeted for May 2025. This transition marks a significant step toward initiating cash flow generation within the current quarter, underpinned by robust funding and methodical execution of its Mine Restart Plan.

During the March quarter, Polymetals Resources achieved key underground development milestones. One of the major accomplishments was the successful completion of the first production stope blast on the 775 Level. Additionally, rehabilitation efforts continued at the high-grade Upper North Lode, an area critical to ramping up future production. First ore is already being stockpiled underground in anticipation of crushing and hoisting, timed with the commencement of plant commissioning activities.

Substantial progress has been made in upgrading essential mine infrastructure. Ventilation systems have been improved, and production equipment, including drill rigs, loaders, and mobile units, has been commissioned in accordance with the comprehensive restart strategy. Above ground, the company has undertaken refurbishment of the 1.2 million tonnes per annum (Mtpa) processing facility. Critical repair works have been executed on the semi-autogenous grinding (SAG) and ball mills, alongside the replacement of mill feed components essential for seamless ore processing.

Additional site infrastructure upgrades included removal of approximately 20,000 cubic metres of accumulated solids from the process water dam. Structural repairs and rubber lining work on chutes and hoppers were also undertaken to ensure operational integrity. Concurrently, improvements to the site’s water management systems have been executed to optimise environmental compliance and operational efficiency.

Financially, Polymetals Resources remains well-positioned. The company successfully raised A$33.75 million through a share placement and share purchase plan at A$0.80 per share. Board and management alignment was evident through a collective contribution of A$295,000 to the raise. At the end of the reporting period, the company reported a strong cash position of A$32.24 million, supplemented by an undrawn US$10 million funding facility with Ocean Partners. This robust financial standing provides ample liquidity to fund production readiness and exploration programs.

The company has steadily expanded its workforce to meet growing operational demands. At quarter-end, the Endeavor project employed over 120 full-time staff, supported by 60 casual workers and contractors. This number is expected to reach approximately 200 as the mine progresses into full-scale production mode in the coming months.

Exploration has been reinvigorated both near the mine and across the broader tenement holdings. Near-mine drilling activities resumed at the Carpark Prospect, situated within 300 metres of the current resource boundary. The prospect is characterised by a geophysical anomaly with overlapping high conductivity and chargeability readings. Recent reverse circulation (RC) drilling intersected zones of strong silicification, which support the geological model for a southern extension of the Endeavor mineral system.

Additional RC holes drilled beneath a silicified zone uncovered during process dam clearing have returned promising alteration results. The first of four planned 600-metre diamond drill holes at Carpark was in progress by the end of the quarter, as Polymetals seeks to expand its resource base close to existing infrastructure.

Beyond the immediate vicinity of the mine, regional exploration efforts have gained momentum across the company's extensive 1,107 square kilometre tenement package in the prolific Cobar Basin. Plans for induced polarisation (IP) geophysical surveys are scheduled for Q2 2025, aimed at delineating new high-priority drill targets. Compilation of historical exploration data and prospect prioritisation efforts have already pinpointed multiple advanced and grassroots targets. These include the No. 4 Tank and Furney’s Tank Prospects, where future programs will integrate geophysics, geochemistry, and detailed mapping to drive the next phase of drill testing.

Polymetals Resources remains focused on transforming the Endeavor Mine into a new source of silver and zinc within Australia, aligning operational execution, financial discipline, and regional exploration to establish a sustainable multi-asset production profile in a proven mineral district.