Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) said it remains on track for first concentrate production in the third quarter next year at its Vares silver project in Bosnia & Herzegovina.
The precious and base metals developer announced earlier this month that the construction of the Vares project is 45% complete and progressing rapidly.
In an update for the three months to 30 September 2022, Adriatic Metals said the final project is estimated to marginally increased to US$173mln.
Last week, the company delivered upbeat news on Rupice Northwest, where it is continuing to hit high-grade intercepts.
Paul Cronin, Adriatic's managing director and CEO, commented: "I am delighted to report excellent construction progress continued at our Vares Silver Project over the quarter. Surface infrastructure and decline development at Rupice is rapidly progressing and remains firmly on schedule, while works have finished to maintain continuous operations throughout the coming winter months.
"Pleasingly, we are nearing the halfway completion mark at Vares, which is an important milestone for the company, with 72% of the total construction capital committed, to date.”
"Like most industries, we have experienced some cost inflation, however management does not envisage the total capex for the Vares Project to increase materially. The current estimate to completion is US$173mln, which is well within our contingencies and an impressive feat in the current economic climate. With global supply chains under stress, we are taking a prudent approach with production scheduled to commence in Q3 2023.
"Given the continued supply chain, inflationary and economic challenges globally, I am enormously proud of our team's huge achievements to date, which are indicative of our absolute determination to deliver the Vares project successfully in 2023," Cronin concluded.
The company said its cash balance as at 30 September 2022 stood at US$65.8mln.