• Upper North Lode (UNL) mining of high-grade silver ore commenced
• Production reconciliation indicates materially higher silver grades than modelled
• Exceptional value of UNL ore provides compelling opportunity to direct ship to smelter

Polymetals Resources Ltd (ASX: POL) has provided an update on operations at its Endeavor mine, located near Cobar, New South Wales. Development of the high-grade silver Upper North Lode (UNL) was completed during February, with stoping of ore now underway. Approximately 11,000 tonnes of ore have been mined, and the company is on track to extract the remaining UNL Ore Reserves over the next 18 months. Results from internal and third-party analyses of the first 11,000 tonne UNL ore indicate the reconciled silver grade is materially higher than the modelled reserve grade. Mineralogical examination and panning of ore material confirms the presence of native silver within the ore, which accounts for the positive grade reconciliation. Due to the increased silver grade and higher price, the company is evaluating the economic potential of direct shipping ore (DSO) to smelters. Polymetals has elected to proceed with an initial DSO trial parcel of about 30,000 tonnes because of the highly attractive smelter terms and strong demand for silver. Direct shipment of UNL ore should realise a payable gold value which would not normally be recovered through concentrate production, thereby increasing the value of DSO.

Polymetals expects to generate consistent and robust cashflow into the future from its significant inventory of concentrate and stockpiled DSO, as well as ongoing production.