ASX-listed Polymetals Resources continued the staged ramp-up of operations at its Endeavor mine during the December 2025 quarter, despite significant disruption following a fatal incident in late October, and completed its first shipments of zinc and silver/lead concentrates.

Two employees were fatally injured on October 28, after the unintended detonation of a ballistic disc, with operations subsequently halted while an independent investigation and comprehensive review of explosives-handling procedures were undertaken. Hoisting and milling restarted on November 15, with mining transitioning from day shift to continuous operations over the following fortnight.

Chairperson Dave Sproule said on Wednesday the quarter had been marked by “two contrasting realities: continued progress toward steady-state operations at Endeavor and the profound impact of the tragic incident at the mine on 28th October”.

“The deaths of our colleagues, Holly Clarke and Ambrose McMullen, and injury sustained by Mackenzie Stirling, have deeply affected families, friends, colleagues, our people, the Cobar community and the company,” he said, adding that the company continued to work with NSW Police and the Resources Regulator as their investigations progressed.

Operationally, Polymetals said productivity was affected by the necessary cessation of operations, as well as resignations and workers’ compensation-related absences, primarily within the mining workforce. Recruitment and onboarding of replacement personnel is under way, with capability and efficiency “steadily returning toward pre-incident levels”.

Despite these challenges, the company achieved key commercial milestones, completing its first zinc concentrate shipment in October and its first silver/lead concentrate shipment in early December. Polymetals said logistics and handling processes are now well established.

Mining also commenced from the high-grade silver Upper North Lode, which is expected to extend over a nominal two-year period. Sproule noted that “the significant increase in silver price, at almost threefold our modelled price, serves to significantly bolster our forecast cash flow at a most opportune time”.

Exploration activity continued near the mine and across the broader tenure. Drilling at the Carpark prospect intersected mineralisation characteristic of Endeavor-style silver/lead/zinc systems, with drilling expanded to double shifts and a second rig mobilised. Regional exploration focused on advancing targets to drill-ready status across Polymetals’ 1 100 km² North Cobar Basin landholding.

On the corporate front, liquidity was strengthened during the quarter through additional working-capital facilities, including Ocean Partners and chairman’s loan facilities, as well as a A$34.4-million institutional placement. At December 31, Polymetals reported cash at bank of A$30-million, plus A$15-million of available finance.

“In conclusion, the December quarter has been very challenging, however I am pleased to report the hard work completed by many at Endeavor over the past 18 months is now demonstrating the underlying strength of the asset, the capability of our team and the quality of the opportunity ahead for the project,” said Sproule.