Safety Concerns Linger as Polymetals Resumes Operations at Endeavor
Polymetals Resources has restarted mining and milling at its Endeavor silver zinc mine following a tragic accident, with shipments and exploration activities ramping up.
- Mining and milling operations recommenced after safety review
- Silver-lead concentrate shipments underway with second shipment planned
- Exploration drilling expanded with additional rigs and double shifts
- Company managing working capital and negotiating standby credit facilities
- Ongoing investigation into October blasting accident
Resuming Operations After Tragedy
Polymetals Resources Ltd (ASX, POL) has announced the recommencement of mining and milling operations at its Endeavor silver zinc mine in Cobar, New South Wales, following a tragic accident in late October that claimed the lives of two employees. The company expressed deep condolences and highlighted the strong support from the local Cobar community and the broader mining industry during this difficult period.
Executive Chairman Dave Sproule acknowledged the profound impact of the incident on employees and stakeholders, emphasizing the company’s commitment to understanding the causes of the accident. A rigorous review of explosives handling and blasting procedures was completed before operations resumed, underscoring Polymetals’ focus on safety and risk management.
Operational and Commercial Progress
Mining teams have transitioned from day shifts to continuous shift work since mid-November, with hoisting and milling activities fully underway. The company has already completed a successful shipment of zinc concentrate and is currently transporting silver-lead concentrate ahead of a second shipment scheduled for early December. These developments mark a significant step in restoring full operational momentum at Endeavor.
Exploration Expansion Signals Growth Ambitions
Exploration efforts have intensified, with diamond drilling at the Carpark prospect progressing on a double-shift basis. A second drill rig is set to join operations shortly, aiming to accelerate the search for additional mineralisation near existing underground workings. Regional exploration programs are also advancing, with preparations underway for further drilling campaigns targeting silver, zinc, lead, and copper deposits within the mining leases.
Financial Management and Future Outlook
Polymetals is actively managing its working capital through an existing concentrate pre-payment facility and is in advanced discussions to secure standby credit facilities to bolster liquidity if needed. This financial prudence reflects the company’s cautious approach as it navigates operational recovery and growth initiatives.
While the company has made clear progress in resuming operations and expanding exploration, the definitive findings from the safety investigation remain pending. These outcomes will be critical not only for Polymetals but potentially for industry-wide blasting safety standards.
Bottom Line?
Polymetals’ operational restart and exploration ramp-up mark a pivotal moment, but safety investigations and capital arrangements will shape its near-term trajectory.
Questions in the middle?
- What are the preliminary findings from the blasting accident investigation?
- How will expanded exploration impact resource estimates and mine life?
- What terms and conditions will the standby credit facilities entail?
