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(Alliance News) - Adriatic Metals PLC on Tuesday said it put in a "hugely productive and busy quarter", as the company prepares to commence concentrate production at its flagship metals project.
Adriatic is a precious and base metals explorer and developer, with a 100% stake in the Vares silver project and the Rupice deposit in Bosnia & Herzegovina. The company said that it has maintained a focus on "operational readiness" across all operations in the final months of 2023.
At the company's Vares project, all project-related infrastructure has been completed, and Adriatic remains on track for first concentrate production in the first quarter of 2024. Last Wednesday, Adriatic increased its production targets for the flagship metals project, where it now expects between 240,000 and 300,000 tonnes of mined ore in 2024, between 750,000 and 850,000 tonnes by 2025, and an average of between 800,000 and 900,000 tonnes between 2026 and 2040.
In December, Adriatic also updated ore reserve estimates for its 100%-owned Rupice polymetallic deposit. Contained ore reserve tonnes have increased by 89% from 2021 estimates to 13.8 million tonnes of ore at 187 grams of silver per tonne and 1.4 grams of gold per tonne. Updated estimates have extended the mine's life from 10 to 18 years, now ending in 2041. The company said it intends to increase the mine life further, following additional exploration drilling and an updated mineral reserve estimate, both expected in the first half of 2024.
As of December 31, Adriatic had USD44.8 million in cash, and estimates its final project cost at USD188.9 million. The company said it remains "fully funded for plant completion and ramp up".
Last week, Adriatic also fully drew down the last USD30 million tranche of its USD120m senior secured debt from Orion Mine Finance, an alternative investment management firm specialising in metals and mining investments. The first debt repayment is scheduled for December 30 2024.
Adriatic Chief Executive Officer Paul Cronin said: "We are pleased to report on the progress made over a hugely productive and busy quarter. The team have made substantial advancements across all areas of the Vares silver project, from mine development to the processing plant, and we are gearing up for the initiation of all operations in the first quarter of 2024. Concurrently all infrastructure projects are now completed, and we are very proud that the first train has travelled down the newly refurbished railway line from Podlugovi to Vares."
Shares in Adriatic metals were down 0.4% at 183.03 pence each in London on Tuesday morning.
By Hugh Cameron, Alliance News reporter
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