Endeavor restart to cost A$23.7m

PERTH (miningweekly.com) – A mine restart study for the Endeavor silver/zinc/lead mine, in New South Wales, estimates that the project will require a capital investment of A$23.7-million and could support an initial ten-year mine life with significant growth potential.

ASX-listed Polymetals Resources on Monday reported that the restart study estimated the project could produce its first concentrate by the second half of 2024, producing 210 000 t of payable zinc, 62 000 t of payable lead and 9.75-million ounces of payable silver.

The study estimated that the project could produce revenues of A$1.4-billion and earnings before interest, taxes, depreciation and amortisation of A$400-million, with life-of-mine free cash flows estimated at A$323-million.

The study estimated a pre-tax net present value of A$201-million and an internal rate of return of 91%.

“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,” said Polymetals executive chairperson Dave Sproule.

“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 mine restart study 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 Bond which will complete Polymetals' acquisition of the project, as well as a finance facility to ensure coverage for peak negative cash drawdown,” said Sproule.

The results of the mine restart study have allowed Polymetals to declare an ore reserve of 5.6-million tonnes at Endeavor.