(Alliance News) - Adriatic Metals PLC said on Wednesday that construction at the Vares silver project in Bosnia and Herzegovina was near complete and that it will reach ore in the next two weeks.
The exploration and development company said that 78% of total Vares project construction has been completed, and that it hopes to deliver its first concentrated production in November.
The company remains fully funded to project completion, with a cash balance of USD95.7 million, and with USD85.1 million of capital expenditure and exploration outflows.
The company said its final project cost estimate is USD182 million following the release of the remaining USD10 million contingency, which was released after a comprehensive analysis of the remaining works to complete at the construction.
The total project cost was slightly higher than the USD168 million predicted in the definitive feasibility study.
Managing Director and Chief Executive Officer Paul Cronin said: "Despite slower than expected progress on the underground development, we are confident our accelerated development plan will improve development rates and we are pleased to announce that we will reach the ore in the next two weeks."
Shares in Adriatic Metals were down 0.5% at 154.00 pence in London on Wednesday morning.
By Will Neill, Alliance News reporter
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Adriatic Metal. (ADT1)