Dual ASX and London-listed Balkans multi-metals project developer, Adriatic Metals has secured a key regulatory approval for its developing Vares silver-zinc-lead project in Bosnia and Herzegovina that nudges it further along the pathway towards production start-up, expected to be later this year. The UK-based company says the Bosnia and Herzegovina Government approved its application for an environmental permit covering the Vares project’s Rupice deposit area following its submission of an environmental impact assessment.
The environmental permit is one of the penultimate regulatory hurdles to clear before Adriatic can apply for and be issued with an exploitation or mining permit for Rupice.
Adriatic appears to have built a solid relationship with the various Federal and local authorities and stakeholders attached to the Vares project and the company is now optimistic it will be granted an exploitation permit for the proposed Rupice underground mining operation.
The company being awarded the Rupice environmental permit follows hot on the heels of the Government issuing an exploitation or mining permit for the Vares project’s Veovaca open-cut mining operation, which also takes in the areas covering a proposed flotation plant, a tailings storage facility and associated infrastructure.
Adriatic Metals Managing Director, Paul Cronin said: “The receipt of the (Rupice permit) is another major step forward in the permitting of the Vares project, and when coupled with the recent issuance of the Veovaca exploitation Permit, clearly demonstrates (Adriatic’s) ability to permit a mine in Bosnia and Herzegovina.”
“We continue to enjoy the strong support of both our local community in Vares and the Government of Bosnia and Herzegovina. We look forward to building this highly profitable mine in the third quarter of 2021, whilst continuing to grow our resources around Vares, and advance our exciting project at Raska.”
Rupice currently makes up the bulk of Vares’ combined probable mineral reserve estimate, published in Adriatic’s recent pre-feasibility study, or “PFS” on the project. Rupice speaks for a total of 8.41 million tonnes of ore at the broader project at an average grade of 179 grams per tonne silver, 1.66 g/t gold, 5.04 per cent zinc, 3.18 per cent lead and 0.55 per cent copper.
Across both the Rupice and Veovaca deposits, the overall Vares probable reserves currently stand at 11.13 million tonnes grading 150 g/t silver, 1.28 g/t gold, 4.22 per cent zinc, 2.67 per cent lead and 0.43 per cent copper.
According to the PFS, Vares is forecast to spit out a bumper EBITDA of US$251 million per annum for the first five years of forecast metal concentrate production.
Adriatic’s definitive feasibility study on the Vares project development, which has a PFS CAPEX estimate of US$173 million, is well advanced and it is hoping to receive the Rupice mining permit nod before midway through the year.
Construction is targeted to commence at Vares in the September quarter of this year.
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By Matt Birney
