After Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) provided an exploration update for the Rupice Northwest deposit at the Vares silver project in Bosnia & Herzegovina, broker Stifel said the results indicate the area could be an important element of production in the early years of operation.
Drilling at the area contributed to a significant upgrade to the mineral resource estimate in July and further encouraging results in August prompted management to expand and accelerate programmes, analysts noted.
The release presents 15 of the 20 holes drilled since and, together with the results of the remaining holes expected to be released in December, will underpin an updated mineral resource estimate for Rupice Northwest in the first quarter of next year.
"The results suggest that the upcoming estimate could demonstrate additional resource growth while further upgrading classification so that, when incorporated into an optimised life of mine plan, Rupice Northwest could provide an important element of production in the early years of operation," the analysts said.
On the updated mineral resource estimate expected in the first quarter next year, they added that within the latest estimate from July, Rupice Northwest accounted for roughly 40% of the overall 8.3Mt classified in the indicated and inferred categories, but nearly half of the global contained zinc, lead, and copper highlighting its higher grade tenor.
Further detail is expected to translate into a more continuous distribution of mineralisation, greater tonnage and grade consistency, while infill drilling is expected to improve the majority of remaining material from its current indicated status, leaving only a minor amount at the peripheries of the deposit remaining as inferred due to the unavailability of suitable drilling platforms.