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Polymetals Resources Ltd (ASX: POL) (Polymetals or the Company) is pleased to announce the outcomes of its Endeavor Mine Restart Study (MRS) which demonstrates strong technical and robust economic support to recommence Silver, Zinc and Lead concentrate production at the Mine.
HIGHLIGHTS1
- Updated Endeavor Mine Ore Reserve
- Initial 10-year mine life with significant growth potential
- LOM Free Cashflow of $323M, Pre-tax NPV8 of $201M and IRR of 91%
- Low Pre-Production Capex of $23.7M, Maximum cash drawdown of $37.8M
- Project Revenues of $1,412M (US$2,750/t Zn, US$2,200/t Pb & US$23/oz Ag)
- Project EBITDA of $400M at an average margin of 28.5% p.a.
- First Concentrate production targeted for H2 2024
Polymetals Executive Chairman Dave Sproule commented:
“The delivery of the Endeavor Mine Restart Study is the culmination of an immense body of work completed to a high level of confidence that can support a positive investment decision.
Bringing silver back into the revenue stream via our reset of the historic 100% silver streaming royalty has unlocked significant value at the Endeavor Mine.
The MRS shows a mining operation that makes swift payback of capital because of high operating margins and the restart nature of activity. We are well advanced in our negotiations to replace the Rehabilitation Bond2 which will complete Polymetals acquisition of the Project, as well as a finance facility to ensure coverage for peak negative cash drawdown.
I am buoyed by the growth potential inherent in the project, given the economic qualities of the mine outlined in the MRS, and the potential to expand the mineral resource of the project since the mine remains open to depth and there are many targets in the mining lease that remain untested.
In the past year, Polymetals share price appreciation ranks the Company in the top 5% of the 817 ASX listed Materials Companies during the period3 and the Board, and Management are proud and excited to move back to our roots as producers and to advance the exploration targets identified.
To unlock Endeavor’s embedded value, Polymetals is laser focussed on recommencement of mining.”
Figure 1: Endeavor Project Location and Nearby Mines
Mine Plan
The Mine Restart Study is based on a mine plan and optimised mining schedule that includes initial mining from three zones in the underground mine (Figure 2) as well as the later retreatment of high-grade Sector 1 tailings that were produced during the early years of production which commenced in 1983. The project benefits from the ability to utilise the extensive existing high-quality and well maintained underground and surface infrastructure.4
The MRS has estimated total ore mined and processed of 8.4 Mt over an initial mine life of 10 years. Mining of underground ore extends from Years 1 to 6 and re-treatment of Sector 1 tailings commences in Year 5 (Figure 3). Underground mining is scheduled to commence within 8 months of a project restart decision with concentrate production 2 months thereafter.
Figure 2: Endeavor Underground Mining Areas
Figure 3: LOM Schedule Tonnes and Grade
The MRS has determined total material to be mined which includes Measured, Indicated and Inferred Mineral Resources. The production schedule (Table 2) contains 30% from the Inferred Mineral Resource category primarily from Tailings and Deep Zinc Lode. There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target will be realised.
The company notes that the project forecasts a positive financial performance and is therefore satisfied that the use of Inferred Resources in Production Target reporting and forecast financial information is not the determining factor in overall project viability and that it is reasonable to report the Life of Mine (LOM) Plan with Inferred Resources. It is to be noted that the Deep Zinc Lode contribution (one of 3 underground ore sources) only comes on stream in Year 3 and Tailings in Year 5. The Mine Plan includes capital for in-fill drilling with the objective of upgrading the resource confidence in these two areas.
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This article includes content from Polymetals Resources Ltd, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
High grade Assay Results Continue at Youanmi
- The latest batch of assays have been received from the 11,000m drilling program (both diamond core and reverse circulation) at the high gold-grade Youanmi Gold Project, located centrally in Western Australia’s prolific gold fields
- The recently-completed infill/exploration program aimed to improve resource confidence and open up corridors for resource growth; to underpin the Definitive Feasibility Study (DFS), and, additionally, provide sample material for ongoing metallurgical optimisation test-work for the DFS program
- Latest highlights from the program include:
- RXDD131: 4.38m @ 19.07 g/t Au from 387.98m,
- incl. 1.73m @ 41.43 g/t Au from 389.96m
- RXDD119: 4.56m @ 14.60 g/t Au from 220.64m
- RXDD115: 2.99m @ 21.11 g/t Au from 249.88m
- RXDD119: 4.0m @ 7.37 g/t Au from 162.0m
- RXDD132: 7.19m @ 3.90 g/t Au from 263.61m
- RXDD133: 2.83m @ 6.53 g/t Au from 431.00m
- RXDD128: 3.82m @ 4.51 g/t Au from 364.59m,
- incl. 1.73m @ 8.22 g/t Au from 364.59m
- incl. 1.73m @ 8.22 g/t Au from 364.59m
- RXDD122: 0.95m @ 13.50 g/t Au from 204.44m
- §These results further demonstrate the continuity of high- grade gold mineralisation along the Youanmi greenstone belt belt, and the potential for resource growth both at depth and along-strike, with discovery potential to the south
- 35,000m Step-up drill campaign well underway with the plan to bring forward ounces and increase the mine plan
The program focused on converting Inferred stopes at Pollard, United North and Youanmi Main to higher confidence Indicated classification and providing material for metallurgical testing for the upcoming Definitive Feasibility Study (DFS) – on track for H2 CY25.
This final consignment of diamond assay results are the fourth batch of assays results returned from the drill program and have been entirely drilled from the Pollard, Youanmi and United North areas (Figure 1).
Rox Resources’ Chief Executive Officer, Phillip Wilding, commented:
“It’s pleasing to round out the 11,000m RD and DD drilling program with another batch of excellent intercepts.
“More importantly, the program has significantly improved our knowledge of the high grade and underexplored Youanmi ore system, and shown that mineralisation remains open at depth.
“Next steps are to convert Inferred areas of the Resource to the higher confidence Indicated classification, and finalise key intercepts of sample material for metallurgical test work to feed into the Youanmi DFS.
“We are excited to have commenced the 35,000m Step-up program to potentially bring forward ounces in the mine plan and significantly increase the size of the Pollard ore zone.”
Youanmi Major Growth Drill program
Resource drilling has focused on converting selected Inferred stopes in the current Mineral Resource of 16.2Mt at 4.4g/t Au for 2.3Moz (Indicated: 10.7Mt at 4.5g/t Au for 1.6 Moz : Inferred 5.5Mt at 4.2g/t Au for 0.7 Moz) 1 to higher confidence Indicated classification at Pollard, United North and Youanmi Main as shown in plan on Figure 1. The drilling has also provided both sample material for metallurgical testing and valuable geological data for the pending Definitive Feasibility Study (“DFS”) planned for second half of 2025.
Figure 1: Plan view of the Youanmi Gold Project featuring drill hole collar locations and 2024 Resource outline overprinted on aerial photography
Outside of the immediate resource area, drilling was also conducted on near-mine exploration and focused on the Youanmi South prospect area, or Paddy’s Lode, first reporting high-grade intercepts in 20232. The drilling at Paddy’s has complimented the Company’s exploration strategy moving south along the Main Lode Shear Zone (MLSZ) and adding additional gold ounces to the Resource. Youanmi South has the potential to grow the Resource above the 103kozpa Production Target outlined in the recently completed Pre-Feasibility Study (“PFS”)3.
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This article includes content from Rox Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Drilling Commenced at Viani in Fiji
HIGHLIGHTS
- The Phase 1, three-hole diamond drilling program has commenced at the Viani Project, Fiji and will test for extensions to the quartz vein gold mineralisation at depth.
- Phase 1 is expected to be completed in early 2025, with plans for additional drilling under the same program dependent on the initial results
- The Viani Project (SPL1513) covers an area of approximately 200km2 and is largely underexplored.
- At the Dakuniba prospect within Viani, low sulphidation epithermal high-grade gold mineralisation has been mapped over >3km strike length.
- Diamond drilling completed by Japan International Cooperation Agency (JICA) in 1995 to 1997 intersected high-grade gold in low sulphidation epithermal quartz veins, including 0.6m @ 27.6 g/t Au.
Alice Queen’s Managing Director, Andrew Buxton said,
With drilling underway, Alice Queen is positioned to test the epithermal gold-style mineralisation identified in historic drilling at the Viani Project. Weather permitting, we anticipate completing the Phase 1, three-hole diamond drilling program in early 2025. Following this, our exploration team will mobilise the drill rig to the Sabeto Project in Fiji to maintain the momentum of this campaign. To deliver timely results to shareholders, we intend to accelerate the analysis of the drill core at ALS Brisbane.”
Image 1 – Diamond drilling at Viani
Details
Geology
The geology of the Viani Project (SPL 1513) comprises olivine basalts and volcaniclastics of the Natewa Volcanic Group which are intruded by andesite sills and dykes. In the 1940s, gold mineralisation was found by local prospectors near the village of Dakuniba. At Dakuniba, low sulphidation style epithermal gold occurs in quartz veins, and silicified rocks along a 3km long NE trending zone.
In 1995-1997, Japan International Cooperation Agency (JICA) drilled six diamond holes at Dakuniba and intersected high-grade gold in chalcedonic, crustiform, colloform banded quartz veins at depths of 50m to 100m below surface (i.e. MJVFV-5 intersected 2.2m @ 11.3 g/t Au, incl 0.6m @ 27.6 g/t Au at 121m downhole). This high-grade gold mineralisation is open in all directions.
Proposed Drill program
The initial Phase 1 drill program at Viani (see Table 1) will comprise three diamond drillholes designed to test continuity to the epithermal gold mineralisation previously intersected in JICA drillhole MJVFV- 5 (2.2m @ 11.3 g/t Au) (see Figure 2). The drilling will test for extensions to the gold mineralisation at depth and along strike.
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This article includes content from Alice Queen Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
