Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) said construction of its Vares project in Boznia Herzegovina is making good progress, though weather recently will mean the first production is around five weeks later than scheduled.
In a statement, Paul Cronin, Adriatic's chief executive, said it is nearing completion of the declines at Rupice and the installation of all the equipment and machinery at the Vares Processing Plant.
Because of the weather, the first production is now expected in November 2023, which will increase the project's cost by US$6mln to US$189mln.
Cronin noted that Adriatic retains an unutilised contingency of US$10mln and the project remains fully funded to its first concentrate production.
Recent exploration at Rupice will be incorporated into a mineral resource estimate, he added, that will be published in July.
“We have also been working to finalise our first Sustainability Report to shareholders and expect that to be published before the end of April," he said.
Cronin noted that Vares has also been made a Project of Special Importance by the State of Bosnia and Herzegovina,
"This demonstrates the significance of the project to the country in terms of its contribution to GDP, FDI, employment and education," he added.