Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) said the focus has now shifted at its Vares silver project in Bosnia & Herzegovina to the preparations required ahead of the start of construction in earnest.
Building started in late November 2021 with civil earthworks around the Rupice surface infrastructure focused on building the access roads to the portals ready for decline development, which is expected to commence in spring 2022.
Adriatic updated the Vares pre-feasibility study in 2021, which indicated an NPV of US$1.1bn with a capital cost of US$168mln.
Funding worth US$245mln has already been agreed to build the mine including a US$102mln equity raise.
Michael Rawlinson, chairman, added that Adriatic was also pleased with the award of the exploration licences covering a further 32Sq Km of acreage, which takes the total exploration concession area to 41Sq Km.
“Drilling continued to focus around Rupice in H2 2021, however, we have plans for drilling on these new areas during 2022,” he said in the company’s annual report.
Losses in 2021 totalled £10.4mln (£5.7mln) reflecting the start of the development at Vares.