Polymetals Resources Ltd recently acquired the Endeavor Silver-Zinc-Lead Mine in Cobar Basin, New South Wales, which has the potential for near-term cash generation by extracting shallow high-grade silver, zinc, lead and gold.
The Endeavor portfolio is a significant asset independently valued at more than $150 million including underground mine, processing facility infrastructure and Cobar real estate.
Polymetals acquired the asset for about 7% of its $150 million valuation via the issue of 52 million Polymetals shares to Orana Minerals shareholders at $0.18/share (valued at $9.36 million).
The acquisition of the Endeavor Project has provided Polymetals with:
16.3 million tonnes lead, zinc and silver JORC Code (2012) compliant resources within the Endeavor project mining leases;
an opportunity to capitalise on decades of Cobar Basin exploration, mine development and production experience by its various team members;
enhanced ore reserve potential by the restructuring of the existing silver streaming royalty; and
jurisdictional and commodity diversification (and associated risk-reduction benefits) for the company and its shareholders.
Polymetals has already received the first batch of assays from its 21-hole reverse circulation (RC) drilling program at Endeavour.
The phase one program – completed on March 5 – returned “significant intercepts of high-grade mineralisation”, which Polymetals said was a key factor in determining the near-term strategy for the project.
High-grade mineralisation with zinc equivalent grades between 11% and 32% was returned over widths from 8 metres to 81 metres at the operation, which is currently under care and maintenance.
Establish sufficient Ore Reserves to support recommencement of operations;
Assumed lead time 18-24 months targeting initial 5-year mine life.
Initial development focus on North Lode, 6-6 Stope and Deep Zinc Lodes.
Addition of leach circuit to existing processing plant to recover further silver and gold.
Extending Deep Zinc Lode resources (open along strike and at depth).
Delineating in-mine gold rich zones on the margin of high-grade lead/zinc mineralisation
Testing of known near-mine and regional exploration targets (regional exploration JV contemplated). Zinc and precious metals recovery from stored tailings.