Polymetals finds a faster gear at Endeavor as Upper Lodes advance

Endeavor throughput rebounds in October

Polymetals Resources Ltd (ASX:POL) has put a much stronger month behind Endeavor Mine, processing 40,790 tonnes of ore in October, 79.1% above the September Quarter monthly average. Silver production rose to 91,905 ounces, while zinc reached 907 tonnes and lead 648 tonnes, increases of 19.7%, 58.8% and 69.6% respectively against the same monthly benchmark.

The operational rebound follows a difficult September quarter, when ventilation work and the shift to contract mining disrupted production. Polymetals had already identified the Upper Main Lode and higher December-quarter throughput as the route back to plan in its September production update, which reported 230,256 ounces of silver for the quarter and a target of more than 350,000 ounces in the December quarter.

Higher-grade Upper Lodes are now the test

October’s headline volume came with a qualification: ore grades were lower than the September Quarter average. The month’s feed comprised 70% remaining 9750 Main Lode stope ore and 30% Upper North Lode ore, producing grades of 99.3 grams per tonne silver, 2.7% zinc and 2.0% lead, compared with quarterly averages of 156.5 grams per tonne, 3.2% and 2.3%.

Recoveries improved across all three metals, however, with silver recovery at 71%, zinc at 82% and lead at 80%. The company says November ore will be mined almost entirely from the higher-grade Upper Lodes, making the next month’s production mix more important than October’s tonnage alone.

Development of the Upper Main Lode began on 9 October, with 84.5 metres of lateral development completed during the month. Initial development ore is expected to be generated in November, while the transition to RND Resources contract underground labour had reached about 77% of its target and remains scheduled for completion by the end of calendar 2026.

Funding cushion expands as production builds

Polymetals also secured an additional US$10 million working capital facility from offtake partner Ocean Partners on 22 October, taking total available funding to US$20 million. The company had drawn US$11.3 million by the end of October. The release reports October concentrate production valued at $11.9 million net of treatment and refining charges, using average October metal prices, but does not specify the currency for that figure.

The new facility adds liquidity while Endeavor’s operating transition is still under way. Polymetals says fuel supply is secured through a Dubbo-based distributor and that it fixes metal prices when concentrate prepayments are made, limiting exposure to price falls before final settlement. Those measures address specific operating and settlement risks, but the company’s forward targets remain dependent on mine performance, grades, recoveries and contractor execution.

Drilling broadens the next production question

Regional drilling started in early October at the No. 4 Tank and Boundary Tank targets in the Northern Cobar Basin. Near-mine drilling continued at PSX, about 2 kilometres east of Endeavor, alongside underground drilling at the Carpark target. Total exploration drilling reached 3,812 metres for the month, including 2,799 metres of regional reverse-circulation drilling.

December Quarter guidance remains 105,000 to 115,000 tonnes processed and more than 350,000 ounces of silver, with the updated 2026 Endeavor Ore Reserve also marked on track for release during the quarter. The immediate question is whether November’s expected shift towards Upper Lode ore can convert the October recovery in throughput into the higher grades and silver volumes embedded in that guidance.