Polymetals Confirms High-Grade Silver Zones in Area Written Off Since 1996 Collapse
Polymetals confirms high-grade silver-lead-zinc mineralisation at Endeavor Mine
Polymetals Resources has confirmed broad zones of high-grade silver-lead-zinc mineralisation in the Upper Main Lode at the Endeavor Mine in New South Wales’ Cobar Basin. Underground diamond drilling has returned significant intersections from 11 of the first 12 holes completed in a 34-hole campaign, with results demonstrating that substantial volumes of mineralisation remain intact in an area previously considered largely sterilised following a 1996 ground collapse.
The program has completed 12 holes for 713.6 m of a planned 34-hole, ~3,100 m drilling campaign. Reinterpretation of historical mine records, survey data and underground inspection suggests the collapse zone may be materially smaller than previously assumed, creating the opportunity to define high-grade tonnes adjacent to existing mine development and infrastructure.
The mineralisation occurs within an established mining environment, close to existing infrastructure and immediately adjacent to the high-grade Upper North Lode, enhancing the potential to convert this area into mining inventory with minimal additional development.
When big ASX news breaks, our subscribers know first
Drilling returns substantial silver, lead and zinc intercepts
The first 12 holes have returned thick, consistent intercepts of high-grade polymetallic mineralisation. The standout results demonstrate the scale and quality of mineralisation that persists in the Upper Main Lode target area.
| Hole ID | Interval (m) | Est. True Width (m) | AgEq (g/t) | Ag (g/t) | Zn (%) | Pb (%) |
|---|---|---|---|---|---|---|
| POL009 | 45.2 | 43 | 436 | 197 | 8.9 | 11.0 |
| POL002 | 33.0 | 26 | 439 | 209 | 9.9 | 8.1 |
| POL010 | 33.0 | 32 | 408 | 205 | 9.6 | 5.5 |
| POL007 | 24.5 | 22 | 473 | 207 | 12.2 | 6.8 |
| POL011 | 26.7 | 23 | 439 | 227 | 9.3 | 7.1 |
| POL008 | 14.9 | 12 | 494 | 304 | 8.5 | 5.9 |
The grades and widths are substantial for a polymetallic deposit, particularly given the intercepts occur in an area with established mining infrastructure. The true widths range from 12 m to 43 m, with silver equivalent grades between 408 g/t and 494 g/t AgEq.
What is silver equivalent and why does it matter?
Silver equivalent (AgEq) is a standardised way to express the combined value of multiple metals in a single figure. Polymetals uses silver as the base metal because it is the dominant metal at Endeavor, allowing investors to compare intercepts and understand total contained value without calculating individual metal contributions.
The calculation incorporates metal price assumptions of US$62/oz silver, US$3,500/t zinc, US$13,600/t copper and US$1,950/t lead, along with expected metallurgical recoveries of 80% silver, 89% zinc, 85% copper and 85% lead. These inputs reflect current market conditions and processing performance at the operation.
Understanding AgEq helps investors assess the economic potential of polymetallic intercepts in a single metric, simplifying comparison across drill holes and deposit areas.
Reinterpretation of 1996 collapse zone creates new opportunity
A ground collapse during mining operations in 1996 led to this area being considered largely sterilised for nearly three decades. Recent review of historical mine records, survey data and underground inspection indicates the collapse zone may be materially smaller than previously interpreted.
This reinterpretation has created the opportunity to define substantial volumes of in-situ mineralisation that remain intact. The drilling program is designed to define the boundaries of the collapse zone and assess the continuity and scale of mineralisation adjacent to those boundaries, with potential to add high-grade tonnes to Endeavor’s mining inventory.
If the collapse zone is confirmed to be smaller than historically assumed, significant high-grade mineralisation may be recoverable from an area that was previously excluded from mine planning, potentially extending mine life and improving the production profile.
Executive Director outlines strategic importance
Executive Director Jess Oram emphasised the significance of the drilling results and the strategic value of the target area’s location within the existing mining environment.
Jess Oram, Executive Director
“The results from the first 12 holes provide strong support for that view. Every hole (bar one) has intersected significant mineralisation demonstrating that substantial volumes of high-grade silver-lead-zinc remain intact adjacent to the collapse boundaries.”
“What makes these results particularly important is their location. The mineralisation occurs within an established mining environment, close to existing infrastructure and immediately adjacent to the high-grade Upper North Lode.”
The proximity to existing infrastructure and the high-grade Upper North Lode enhances the potential to convert this area into mining inventory.
Drilling program continues with 22 holes remaining
The remaining scope comprises 22 holes still to be completed from the 34-hole program (approximately 3,100 m total). The program is designed to improve geological confidence, assess continuity of mineralisation and support evaluation of potential future mining opportunities within the Upper Main Lode area.
Assay results to date have provided sufficient encouragement to continue the program, with the objective of defining the scale and continuity of mineralisation and supporting potential future mining additions to Endeavor’s inventory.
Program objectives
The ongoing drilling program has three key objectives:
- Define the scale and continuity of mineralisation within and around the reinterpreted collapse zone
- Improve geological confidence in the Upper Main Lode area
- Support evaluation of potential future mining additions to Endeavor’s inventory
Continued drilling success could support a meaningful addition to Endeavor’s future mining inventory, potentially extending mine life and improving the production profile with high-grade tonnes in close proximity to existing development.
Endeavor’s existing resource base
Endeavor’s current underground Mineral Resources total 16.3 Mt at 8.0% Zn, 4.5% Pb and 84 g/t Ag. The Stage 1 Ore Reserve totals 6.6 Mt at 4.32% Zn, 2.04% Pb and 73 g/t Ag, providing a substantial base for near-term production.
| Category | Tonnes (Mt) | Zn (%) | Pb (%) | Ag (g/t) |
|---|---|---|---|---|
| Measured | 4.4 | 8.3 | 5.1 | 93 |
| Indicated | 8.8 | 7.9 | 4.6 | 82 |
| Inferred | 3.1 | 7.7 | 3.7 | 78 |
| Total | 16.3 | 8.0 | 4.5 | 84 |
The Upper Main Lode drilling has the potential to add incremental tonnes to an already substantial resource base at attractive grades, particularly given the high-grade nature of the intercepts returned to date.
The next major ASX story will hit our subscribers first
What this means for Polymetals investors
The drilling has confirmed mineralisation persists in an area previously considered unmineable, with 11 of 12 holes intersecting significant polymetallic mineralisation. The proximity to existing infrastructure reduces potential development costs if mineralisation is converted to reserves, as the target area is adjacent to established mine development and the high-grade Upper North Lode.
Continued success in the remaining 22 holes could support a meaningful uplift to Endeavor’s mining inventory. Polymetals is focused on cost-efficient development and production of high-grade silver and zinc assets, and the Upper Main Lode represents a potential low-cost addition to Endeavor’s production profile given existing access and infrastructure.
The reinterpretation of the 1996 collapse zone has created an opportunity to define substantial volumes of high-grade mineralisation that may be recoverable from an area excluded from mine planning for nearly three decades, potentially extending mine life and improving the economic profile of the operation.
Want the Next Mining Breakthrough in Your Inbox?
Join 20,000+ investors receiving FREE breaking ASX news within minutes of release, complete with expert analysis. Get real-time alerts on mining discoveries, drilling results and resource updates the moment they hit the market. Click the “Free Alerts” button at StockWire X to stay ahead on market-moving announcements.