Name of the Project
Vares silver project.

Location
Vares municipality of the Zenica-Doboj Canton, in Bosnia and Herzegovina.

Project Owner/s
Adriatic Metals.

Project Description
A definitive feasibility study (DFS) has shown the exceptional potential of the Vares project. The project comprises the Rupice underground deposit and the Veovaca openpit deposit.The 2021 DFS has considered only the mineral resources and reserves of Rupice. The Veovaca openpit and the barite and sulphide (pyrite) concentrate circuits have been excluded from the mine plan.

The Rupice ore reserve has decreased from 8.4-million tonnes to 7.3-million tonnes, while the ore reserve grade has increased from 463 g/t silver equivalent to 485 g/t silver equivalent.

The 2021 DFS mine plan is focused on mining the high-grade sections of the Rupice deposit as early as possible, and delivering consistent high-grade feed to the Vares processing plant for as long as possible. As a result, the mine plan has been modified to accommodate new lower (ingress) and upper (egress) declines for optimised access, which also improves operational flexibility and safety.

An additional third decline will be built, dedicated solely for ventilation and replacing the previously considered raisebore. Using a ventilation decline rather than the vent-raisebore will remove the risks associated in the near-surface ground conditions and provides an improved emergency egress. The third decline can also provide additional access for ore-haulage later in the mine life by relocating the ventilation fans.

The project’s mine life has decreased from 14 years to 10 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project’s net present value has increased from $1.06-billion, at an 8% discount rate in the 2020 prefeasibility study (PFS), to $1.04-billion in the DFS, while the internal rate of return has increased from 113% to 134%. Project payback from first production has decreased from 1.2 years to seven months.

Capital Expenditure
Initial capital costs have decreased from $173-million in the PFS to $168-million in the DFS.

Planned Start/End Date
Not stated.

Latest Developments
The company will now focus on finalising project financing, which is well advanced, while starting construction and continuing to examine marginal improvements in metallurgical recovery, and capital and operating costs.

Key Contracts, Suppliers and Consultants
Ausenco (Vares processing plant and Rupice surface infrastructure sites); Mining Plus (Rupice underground mine planning); Patterson and Cooke (backfill plant testwork and design); Wardell Armstrong International (metallurgical testwork, tailings storage facility and projectwide water balance); Avocageotec (mine geotechnical); Bluequest Resources (concentrate offtake, marketing and logistics); and various local institutes and consultants (power supply, haul-road, railway siding upgrade, firewater reticulation and water supply).

Contact Details for Project Information
Adriatic Metals, tel +44 207 993 0066.