The NE602, U1, contains oscillator and mixer stages. The mixer combines the oscillator signal with the input rf signal to produce signals whose frequencies are the sum and difference of the input frequencies. For example, a 7.5-MHz signal is picked up by the antenna and mixes with the 8.5-MHz oscillator frequency. The difference between those two signals is 1 MHz-right in the center of your AM dial.
Shortwave-converter - schematic

Transformer Tl is a 10. 7-MHz i-f transformer.

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