Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) achieved record production in August from the Vares project in Boznia & Herzegovenia as the first stope came on stream.
Ore produced at the Rupice mine at Vares amounted to 25,514t, compared to 9,513t in the first six months of 2024 with mined grades higher than expected.
Development rates also increased to a record high of 318m in August, 6% above the forecasted 300m/month.
Laura Tyler, Adriatic’s interim chief executive, said: "Adriatic has achieved a major milestone with mining its first ore stopes in August, leading to a record month of production, in addition to record development metres.
“Production in September has already exceeded that total, another positive step as we continue to ramp up towards nameplate production.”
Next steps are to have another active stope by December and move the mine towards commercial production levels by the end of the year.
Adriatic expects full-year 2024 mine production to be approximately 180,000t, which is below the lower end of guidance provided in January 2024 due to delays earlier in the year.
Guidance for 2025 remains unchanged at 750,000-800,000t with a new update scheduled after reaching the point of commercial production
Head grades month-to-date are 10.8% zinc, 6.9% lead, 292g/t silver and 3.4g/t gold.
The stockpile at Rupice currently contains approximately 37,000t at 6.5% Zn, 4.9% Pb, 302g/t Ag, 2.8g/t Au.
Concentrate grades have been good, Adriatic added, averaging 47% Zn, 2,200g/t Ag and 44% Pb month-to-date.
Adriatic added it is also moving forward with plans for an alternative tailings facility (TSF) at the former Veovaca open pit site, as well as permitting for the waste rock area.
The current operating facility has capacity until mid-first quarter 2025 and Adriatic expects construction at the Veovaca TSF will be completed by the end of 2024.
Tyler added: “We have made excellent progress on the Veovaca tailings facility, with early works started and permits expected in October.
“With the continued use of the current temporary TSF into Q1 2025, I expect production to be uninterrupted by tailings capacity issues through 2025 and beyond.”
At the end of August, Adriatic had US$35.6 million in cash plus US$25 million remaining from a facility with Orion.
The first quarterly debt repayment to Orion of approximately US$18 million is scheduled for 31 December 2024.