ASX-listed Polymetals Resources has confirmed in an optimised mine plan for the Endeavour silver/lead/zinc mine that it can indeed generate strong financial returns and value for shareholders, as well as the Cobar region in New South Wales.

The optimised mine plan contains significant increases in ore reserves, mine production, free cashflow, net present value (NPV) and an internal rate of return (IRR), compared with a prior mine restart study that was undertaken last year.

The new mine plan envisions a ten-year mine life able to generate revenue of A$1.9-billion and pre-tax cashflow of A$609-million from the sale of 260 000 t of zinc, 90 000 t of lead and 10.6-million ounces of silver.

The IRR and NPV has been estimated at 345% and $414-million, respectively, with the low capital cost of mining of A$28-million able to be paid back over a period of 14 months.

Polymetals chairperson Dave Sproule commends the technical team for having ensured impressive outcomes for the Endeavour mine restart and assures the board is confident on the practical delivery of the mine’s restart.

“We are also moving to test several ideas to unlock contained gold and silver from the existing stored tailings using hydrometallurgical techniques, as well as conduct more exploration to expand the mineral resource of the deposit to further extend mine life,” Sproule explains.

He adds the quality of the Endeavour mine asset, the company’s Cobar basin operational familiarity, the significant remaining metal endowment and enormous exploration potential all provide a platform for substantive and long-term returns for shareholders and the region.

Following the optimised mine plan, the company is now working to finalise a A$30-million debt facility to support the project’s redevelopment to positive cashflow in the first half of next year.

Polymetals has already started with critical path site refurbishment, including underground infrastructure. After the debt facility is secured, site refurbishment will be ramped up to meet the scheduled mining and processing timeline.

Meanwhile, the company progresses near mine exploration activities with further drilling at its Carpark prospect.