Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) said it has made significant progress in its preparation to bring the Vares Silver Mine in Bosnia & Herzegovina into production.
The company has completed 84% of the total project construction, hitting a notable milestone with the first ore already mined and stockpiled at Rupice as of 15 July.
Further advancements include substantial progress in the lower and upper decline developments. With the lower decline currently at 695 metres (m) and the upper decline at 601m as of 20 July, the end of Q2 saw the first ore drive reached.
The project is running on schedule with all long lead items ordered, putting Adriatic Metals on track for its first concentrate production by November.
Infrastructure developments are also in full swing. The construction of a 24.5 kilometre (km) haul road, alongside the refurbishment of the rail head and railway line, is due for completion by the end of the third quarter.
To manage these operations, the company has expanded its workforce. The staff headcount has risen to 267, and contractor numbers stand at 398, signalling a strong commitment to keep the project timeline on track.
"Even though it has only been a few weeks since implementing our accelerated development plan we have seen a significant improvement in the development advance rates at Rupice," said Adriatic's managing director, Paul Cronin in a statement.
"I am also delighted that we have mined our first ore and are now stockpiling ahead of plant commissioning in November.
"This is a significant milestone for the company and a great achievement for the team. We remain firmly on track and fully funded to complete the construction of Europe's most modern mine producing quality silver and zinc concentrates for the European and international markets," he added.
On the exploration front, drilling has continued at Rupice Northwest, adding to the expected increase in the Vares Project's life of mine. This exploration has led to identifying a new copper-gold-rich body with high-grade lead, zinc, silver, and antimony, while reduced barium is a significant plus.
This discovery, along with drilling results indicating that the mineralised bodies at Rupice and RNW deposits overlap rather than connect, open up new opportunities for mine development.
The final project cost is estimated at $182mln, with the final Orion debt drawdown of $30mln expected in Q3 2023.
Adriatic Metals' cash balance at the end of June stood at $85.6mln, with capex and exploration outflows of $75.7mln expected before production. The company is fully funded to project completion, with 94% of capital already awarded, pending award, or recently quoted.