Endeavor Mine in Cobar, will ramp up again after revised studies on the value of extraction doubled its worth.

The lead, silver and zinc mine has been in care and maintenance mode since 2019 when previous owners CBH Resources reduced the 161 full-time staff and 40 contractors to 71.

Current owners Polymetals Resources will now make plans to bring the mine back into production over the coming year, after a restart study demonstrated better than anticipated profitability and an increased present value of $414 million from $201 million.

Company General Manager of Corporate Development Linden Sproule told mining.com.au that the Endeavor mine had contributed a great deal to Cobar.

“On an annual basis, when it was operating, it was contributing between $50 million and $80 million to the local township of Cobar, which has a population of 4,000 people. So it’s significant,” Mr Sproule said.

Based on a 10-year mine life, the company now predicts earnings of $89 million per year in the first five years, equating to an anticipated doubling in value and extension of the mine’s life.

Valuable tailings the key to profitability

Mr Sproules attributed the increased value to the capacity to reprocess high-value tailings. “All you’re doing, basically, is moving the material that’s very near to where you’re processing already, and then putting it back in the mill and reprocessing it, so you’re not mining or disturbing new areas.

“There’s almost $6 billion worth of metal still in the tailings. If we’re able to extract, let’s call it five per cent of that, over a period of five or 10 years, that’s on the low side. We might be able to get 10% or 20% of that. It’s a significant amount of money.”

Based on a 10-year mine life, the company predicts earnings before interest, taxes, depreciation, and amortisation of $89 million per year in the first five years. Production is expected to start in the first half of 2025.

“The work completed by the technical team has generated impressive outcomes for the Endeavor Mine Restart,” Polymetals executive chair Dave Sproule said. 

A boon for the region

Demi Smith, secretary of the Cobar Business Association said she hopes this will revitalise the region.

“I'm hoping it brings more families here to town and settling within the community,” she said. “I think that's the most important part. If the mine is going to revamp, you'd hope to see more people living here.

“In Cobar, mines contribute heavily to our economy. They bring workers and families and contractors to town. Mines operate as fly in, fly out/drive in, drive in/ drive out and we also have our fair share of residential employees. It’s a huge workforce.”

But for the Cobar community, the company’s revenue leads to bigger community advantages. “Mining is our region’s biggest employer, and the doubling value and extension of a mine's life is good news. Obviously, we've got active mines all around here and when fully operating, Endeavor was a large employer. To have it out of care and maintenance is fantastic."

Ms Smith said mines contribute to local community in other ways beside employment. According to the Cobar Shire Council, there are five main mines in the region; Endeavor, Aurelia Metals' Peak Gold Mine, Tritton copper mine, owned by Aeris Resource, Metals Acquisition Limited's CSA copper mine and the Manuka gold and silver mines, owned by Manuka Resources.

“Several have a community donation scheme and give back to the community in that way, giving funds to sporting groups and community groups. A mining revamp like the one at Endeavor is good news for us.”