Slide 1: Endeavor Silver Zinc Lead Mine – Mine Restart Study
ENDEAVOR SILVER ZINC LEAD MINE ENDEAVOR MINE RESTART STUDY - October 2023
Slide 2: Disclaimer
Disclaimer Disclaimer The purpose of this presentation is to provide background information to assist readers in obtaining a general understanding of Polymetals Resources Ltd (ASX: POL, “Polymetals” or the “Company”) and its objectives. This presentation is not a disclosure document under Australian
Slide 3: Disclaimer 2
Disclaimer 2 MRS Cautionary Statements The MRS discussed herein has been undertaken to explore the technical and economic feasibility of restarting production at the Endeavor Mine. The Production Target and financial forecasts presented in the MRS are shown on a 100% Project basis. The Forward Looki
Slide 4: Polymetals Corporate Structure
POLYMETALS CORPORATE STRUCTURE Share Price A$0.31 Share Price Performance – 12-month High = A$0.385, Low = A$0.15 AUD Share Price Shares on Issue 151,001,223 $0.40 Options 1.2 million $0.35 Escrowed Shares (Mar-2024) 52 million $0.30 $0.25 Cash (30 June 2023) A$2.6 million $0.20 Debt (unsecured, 5%
Slide 5: Polymetals Investment Summary
POLYMETALS INVESTMENT SUMMARY Mine Restart Study demonstrates further profitable 10-year life ahead at Endeavor $323 million free cashflow, NPV8% $201 million & IRR 91% Near-term, de-risked silver, zinc, lead producer Single asset focused: deliver, optimise and sustain a relevant & strategic asset I
Slide 6: Cobar Basin – Premier Australian Polymetallic District
COBAR BASIN – PREMIER AUSTRALIAN POLYMETALLIC DISTRICT 5 Major Base & Precious Metal Mines (CSA, Endeavor, Peak, Federation and Tritton) Endeavor 2nd Largest Mine in Cobar Basin (Mill Capacity & Resource Size) +10 active ASX companies operating and exploring within region Economically significant re
Slide 7: Endeavor Silver-Zinc-Lead Project
ENDEAVOR SILVER-ZINC-LEAD PROJECT MINE RESTART STUDY Polymetals Due Diligence Drilling – February 2023
Slide 8: Project Overview
MINE RESTART STUDY Project Overview Location 40km North-West of Cobar, central NSW Tenements 5 mining leases (30km2), 3 exploration licences (1,100km2) Mineralisation Massive Sulphide, ‘Cobar Style’ Polymetallic Discovered in 1974. Operated from 1982 to 2019. 32.2mt of ore @ History 8.0% Zn, 5.0% Pb
Slide 9: Physical Outcomes
MINE RESTART STUDY Physical Outcomes Ore Measured & Zn Pb Ag Annual Production Source Tonnes Indicated % % g/t Mined 1,400,000 Upper Main Lode 281,575 97% 5.63 4.40 364 Main Ore Body 975,722 85% 5.63 3.30 59 1,200,000 Deep Zinc Lode 2,270,271 53% 7.01 0.64 37 Tailings 4,833,413 73% 2.12 1.55 79 Tota
Slide 10: Underground Mining
MINE RESTART STUDY Underground Mining Underground mining scheduled from three areas: ▪ Primary Ore Body: Long Hole Open Stoping used to extract 1.0Mt ore containing 54.9kt Zinc, 32.2kt Lead, and 1.9Moz Silver. UPPER MAIN LODE ▪ Deep Zinc Lode: Sub-Level Stoping used to extract 2.3Mt ore containing 1
Slide 11: Tailings
MINE RESTART STUDY Tailings Endeavor Tailings Storage Facility (TSF) consists of 5 sectors. Sector 1 (5.0Mt) is high grade from 1982-1989. ▪ Mining method: High-pressure monitoring (hydromining). ▪ Quantity: 4.8Mt Tailings mined and processed containing 102.5kt Zinc, 74.9kt Lead, and 12.3Moz Silver.
Slide 12: Processing
MINE RESTART STUDY Processing 1.2Mtpa nameplate processing capacity: ▪ Crushing: Crushed to 125mm and hoisted to surface ▪ Grinding: 2 stage SAG / Ball milling to P80 of 45µm ▪ Flotation: Lead and Zinc differential flotation ▪ Concentrate: Lead and zinc flotation concentrates thickened then filtered
Slide 13: Capital Costs
MINE RESTART STUDY Capital Costs Capital Cost Detail ▪ Pre-production CAPEX of A$23.8 million. Pre-production A$M Processing Fixed Plant 5.12 ▪ Peak negative cash drawdown = A$37.8 million Mining Fixed Plant 3.60 Mobile Plant 3.08 Capital Sources A$M Use of Capital A$M Site Establishment 7.99 Contin
Slide 14: Operating Costs
MINE RESTART STUDY OPERATING COSTS All-in Unit Operating Costs: Pumping Station ▪ Underground = A$229/t ore RL 9320 ▪ Tailings = A$55/t ore Underground Tailings Cost Area (A$/t) (A$/t) Mining 86.6 3.9 Processing 27.9 19.6 Maintenance 20.5 7.2 General Administration 17.8 4.9 TC/RC, transport, shippin
Slide 15: Economic Inputs
MINE RESTART STUDY Economic Inputs • Fixed economic assumptions across the Life of Mine • Conservative metal price assumptions provides upside potential Metric Unit Value Zinc Price US$t 2,750 Lead Price US$t 2,200 Silver Price US$oz 23.00 Exchange rate AUD:USD 0.67 ASX: POL
Slide 16: Financial Outcomes
MINE RESTART STUDY Financial Outcomes Restart Study Earnings Forecast Project Highlight Outcome 400.00 LOM Revenue A$1,412 million LOM OPEX A$934 million 300.00 LOM EBITDA A$400 million Free Cashflow A$323 million 200.00 Pre-Production CAPEX A$23.7 million A$ millions Pre-Tax NPV8% A$201 million 100
Slide 17: Opportunities
MINE RESTART STUDY Opportunities Possible additions to Ore Reserves ▪ Pillar Recovery of the Upper Main Lode – When mining commences in the Upper Main Lode, the ground conditions will be assessed, and if found to be favourable, approximately 77,000 t of high-grade ore could be recovered by pillar ex
Slide 18: Exploration Near-Mine
MINE RESTART STUDY Exploration Near-Mine Initial exploration focuses on generating Ore Reserves from within the Mining Leases. Four targets include: ▪ Panda Endeavor ▪ Garman ▪ Poon Boon ▪ Southern Extension (including Bengaccah) Panda All Near-Mine targets are located within 2.5km of the Endeavor M
Slide 19: Exploration Regional
MINE RESTART STUDY Exploration Regional ▪ 1,100km2 of fertile Cobar Basin tenements ▪ Geophysics and drilling of high-priority targets (Kiri, Furney’s Tank, Boundary Tank & Wayne’s Find) Priority Prospects: ▪ Kiri: Cu-Zn - discovered 1983 (geochemical soil anomaly) ▪ Boundary Tank: Cu/Au - discovere
Slide 20: Capability to Deliver
CAPABILITY TO DELIVER Established infrastructure and long operational history lowers restart risk Restart Plan conservatively costed and robust Long management history with asset and operations within the Cobar Basin Key positions identified; strong employment interest & community support Single pro
Slide 21: Thank You
Native Silver: Endeavor Mine THANK POLYMETALS RESOURCES ASX: POL YOU Unit 1, 101 Main Street, Follow on LinkedIn & www.Polymetals.com Alstonville 2477, NSW Twitter ASX: POL
Slide 22: Appendix
APPENDIX Endeavor Mine March 2023
Slide 23: Ore Reserve – JORC (2012)
APPENDIX 1 Ore Reserve – JORC (2012) Category Source Mt Zinc (%) Lead (%) Silver (g/t) Proved Underground 0.49 6.11 3.90 132 Underground 1.7 7.17 1.64 60 Probable Sector 1 Tailings 3.4 2.14 1.56 80 Total Proved and Probable 5.6 4.04 1.79 78 Reserves *Discrepancies may occur due to rounding. NOTE: Re
Slide 24: Mineral Resources – JORC (2012)
APPENDIX 2 Mineral Resources – JORC (2012) Underground JORC (2012) Mineral Resource JORC Category Mt Zinc % Lead % Silver g/t Zinc Mt Lead Mt Silver Moz Measured 4.4 8.3% 5.1% 93 0.37 0.22 13.2 Indicated 8.8 7.9% 4.6% 82 0.70 0.40 23.2 Inferred 3.1 7.7% 3.7% 78 0.24 0.11 7.8 Total 16.3 8.0% 4.5% 84
Slide 25: Endeavor Historical Overview
APPENDIX 3 Endeavor Historical Overview 1973 1977 1985 2003 2023 ▪ Elura Pb-Zn-Ag deposit ▪ Positive feasibility study ▪ Elura is acquired by North ▪ CBH Resources (CBH) ▪ Polymetals acquires discovered by the released by EZ. Broken hill Holdings acquired the Elura Endeavor. Electrolytic Zinc (EZ) f
Slide 26: Existing Infrastructure (+$150M)
APPENDIX 4 Existing Infrastructure (+$150M) Secure water supply via a pipeline from Cobar. Endeavor Mine Headframe Fully equipped underground mine including a 7km decline from surface, 380m deep shaft with associated headframe, winder, U/G crusher and U/G infrastructure. Paste-fill plant - 800ktpa c