Polymetals (ASX:POL) geotechnical drilling results

Polymetals Resources Ltd (ASX:POL) has reported exceptional intercepts from geotechnical drilling at the high-grade Upper North Lode at the Endeavor Mine in Cobar. The drilling results, including intercepts of up to 13.5 g/t gold, 1,410 g/t silver, 12.5% zinc, and 34.0% lead, have increased confidence in the potential for increased tonnages and accelerated mining rates at the mine, leading to greater revenue. The Company is on track to restart the Endeavor Mine and expects first cashflows in H1 2025, with an optimised mine plan projecting significant revenue generation over an initial 10-year Stage 1 mine life.

Executive commentary on geotechnical drilling results

As previously announced, the optimised Endeavor mine plan demonstrates a robust initial 10-year life. The competency of the Upper North Lode mineralisation demonstrated by the geotechnical drilling provides us with a great deal of encouragement that the mining rate and extracted volume of the main high-grade area may be increased beyond that currently modelled. This would deliver a significant increase in revenue earlier, derisking the operation during its first year. Also, whilst gold revenues have not been included in the mine plan, the approximately 13,000 OZ gold hosted within the UNL represents another potential significant source of revenue during the early stages of the project. Gold recovery test work will be completed alongside the silver, lead, and zinc flotation optimisation work underway. As momentum builds with the recent recommencement of refurbishment works, continued recruitment of operational staff and with imminent draw down of project funding, we are very much looking forward to generating first concentrates and cash flow during H1 2025.

Summary of geotechnical drilling results and outlook

The geotechnical drilling results at the Upper North Lode of the Endeavor Mine have provided Polymetals with increased confidence in the potential for higher mining rates and greater revenue. The Company's optimism is supported by the impressive intercepts of silver, gold, zinc, and lead, indicating the likelihood of more robust production cashflows earlier than previously modelled. The upcoming metallurgical optimisation test work, including gold recovery, further enhances the revenue potential. With the mine on track for restart and first cashflows expected in H1 2025, Polymetals is poised for a promising outlook, aiming to deliver significant revenue generation over the initial 10-year Stage 1 mine life. The Company's focus on accelerating mining rates and exploring additional revenue sources such as gold underscores its commitment to maximizing the Endeavor Mine's potential.