Adriatic Metals announces Vares Silver project update

Highlights

Vares project

• Rupice surface infrastructure works have advanced significantly over the summer.
• 45% of total project construction complete.
• Decline development is progressing well, with the lower decline currently at 210 m and upper decline at 100 m.
• Majority of long lead items and equipment orders are expected on schedule, however global supply chain disruption has pushed first concentrate production from the end of 2Q23 into 3Q23.
• The company retains sufficient working capital reserves and contingencies to offset this slight delay in concentrate production.
• Exploration and infill drilling at Rupice will continue through the winter, with results feeding into the planned mineral resource estimate update in 1Q23.
• Staff headcount is 177 and increasing as the company manages to attract and train talented people. Contractor count at 188.
• Adriatic’s first annual sustainability report will be published in 2Q23.

Finance update

• Final Project cost estimate has increased marginally from US$170 million to US$173 million due to increases in engineering costs, plant and electrical equipment, including adjustments based on recent contract awards.
• 72% of capital committed.
• The group’s estimated cash balance at 30 September 2022 was US$66 million.

Paul Cronin, Adriatic’s Managing Director and CEO commented:

“I am delighted to report excellent construction progress at our Vares project. The summer has seen underground development accelerate as well as the commencement of construction of both the process plant buildings and haul road.”

“We are nearly 50% complete with 72% of the total construction capital committed.”

“Like most industries we have experienced some cost inflation but we do not envisage the total capex to increase materially. The current estimate at completion is US$173 million, which is well within our contingencies and an impressive feat in the current climate. With supply chains under stress, we are taking a prudent approach with production to commence in 3Q23

“Given the myriad of supply chain, inflationary and currency challenges globally, I am enormously proud of our team and their absolute determination to deliver the Vares project successfully in 2023.”

Read the article online at: https://www.globalminingreview.com/mining/07102022/adriatic-metals-announces-vares-silver-project-update/