Adriatic Metal’s managing director Paul Cronin said construction at the Vares silver project is now 60% complete with the first concentrate production scheduled for the third quarter of 2023.
Cronin added that although there has been a 6% increase in project costs from US$173mln to $183mln, which includes US$10m of unutilised contingency, it remains fully funded to completion.
More than half of the increase was due to foreign exchange movement, he said, with a hedging strategy now in place to prevent further impacts from the depreciation of the US dollar versus the euro.
Costs also reflected two Jameson flotation cells that should improve grade recoveries and reduce metallurgical risks.
On drilling, Cronin added the results at Rupice NW had been outstanding and the high-grade mineralisation remains open along strike, up and down-dip with substantial follow-up exploration planned for 2023.
Cash and equivalents at the end of December 2022 were US$60.5mln, the quarterly update said.