ASX and London-listed aspiring Balkans polymetallic project developer, Adriatic Metals, continues to successfully navigate penultimate regulatory approvals on the pathway to development of its flagship Vares silver-lead-zinc project in Bosnia and Herzegovina.
Leveraging its first-mover advantage in Bosnia and Herzegovina, Adriatic is rapidly advancing the Vares project into the development phase. To that end, the company confirms it has secured the urban planning permit for the Vares project site designated to take in open-cut mining, processing plant and tailings areas at Veovaca.
Securing the permit from the country’s Government has been a complex, multifaceted process, the company says. However, it now paves the way for Adriatic to seek the final approvals needed to allow it to proceed with building the proposed Vares project, which has a forecast CAPEX of US$173 million.
The company got a big vote of confidence in the urban planning application process, receiving positive feedback on the project from all significant government stakeholders as well as key commercial service providers.
Having obtained the necessary urban planning, environmental and other permits, Adriatic says it plans to immediately apply to the Federal Ministry of Energy, Mines and Infrastructure for the all-important exploitation or mining permit.
For the Vares project site of Rupice, the company has also received a preliminary water permit for the area designated to take in the proposed underground mine and associated infrastructure. The water permit is a forerunner to the Rupice environmental permit, which is under final review following the completion of the public hearing.
Adriatic Metals Managing Director, Paul Cronin said: “I am very pleased that this key exploitation permitting step has been achieved through close co-operation between Adriatic’s Bosnia and Herzegovina team and the significant number of government and commercial stakeholders involved in the process. It clearly demonstrates the strong support we have from all levels of government in Bosnia and Herzegovina.”
Adriatic unveiled what it describes as “captivating economics” in the recently released bumper pre-feasibility study, or “PFS” on the proposed development of Vares.
The impressive PFS financials include an estimated after-tax net present value of US$1.04 billion, an internal rate of return of 113 per cent, an EBITDA of US$251 million per annum in the first five years of production and a project capital payback period of a little over a year.
Overall probable ore reserves for Vares – at the Rupice and Veovaca deposits – currently stand at of 11.13 million tonnes going 150 grams per tonne silver, 1.28 g/t gold, 4.22 per cent zinc, 2.67 per cent lead and 0.43 per cent copper. Of the total reserves, Rupice speaks for 8.41 million tonnes grading 179 g/t silver, 1.66 g/t gold, 5.04 per cent zinc, 3.18 per cent lead and 0.55 per cent copper.
According to the PFS, the reserves are expected to sustain mining and processing operations at Vares for an initial 14 years, with silver and gold accounting for 45.3 per cent of projected concentrate revenues totalling a massive US$3.29 billion across the 14-year life of mine.
Spurred by the cracking PFS, Adriatic says work on the definitive feasibility study is under way.
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By Matt Birney
