Simplified Process Design De-Risks Project Execution
Adriatic Metals Plc (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) believes it is set to become tthe first publicly listed mining company in Bosnia & Herzegovina following completion of the Definitive Feasibility Study (DFS) for the Vares Silver Project.
The study was completed by a number of international consultants and coordinated by Ausenco Pty Ltd.
This announcement has focused on the technical matters of the Vares Silver Project. In addition, a summary has been provided of the concurrent ESIA workstreams, which are nearing completion. A separate, detailed announcement will be made on the ESIA in due course.
Managing Director and CEO, Paul Cronin, said the completion of the 2021 DFS is a major milestone for the company and clearly demonstrates the exceptional potential of the Vares Silver Project.
“During the formulation of this study, we have significantly expanded our relationships with key suppliers in BiH and the region, as well as completing an Organisational Blueprint for human resource development and training, both of which are key requirements for our economic sustainability objectives.
“Project delivery and execution risks have been substantially reduced through the simplification of the process flowsheet and Initial Capital Costs lowered against the backdrop of inflationary construction costs, whilst improving the overall Project economics.
“In the design of this Project, environmental and economic sustainability have been at the core of our thinking, shaping the Project to ensure that its economic and environmental benefits extend well beyond the current mine life, and provide a perpetual benefit to our local community in Vares and indeed, to the BiH economy.
“Our focus from this point is to finalise the Project financing, which is well advanced, and concurrently commence construction whilst continuing to look for marginal improvements in metallurgical recovery, capital and operating costs.
“Additionally, we have commenced a study to expand the renewable energy production we have at the Vares Processing Plant, and augment that capacity, to ensure that the Vares Silver Project reduces its carbon emissions significantly, soon after the commencement of commercial production.
“As demonstrated in our recent exploration results, we are confident that we can expand the Resources and Reserves at the Vares Project and look forward to working with the Vares community for decades to come, jointly demonstrating the benefits of mining operations in a European context.”
The DFS features a Ssmplified process design including:
- Veovaca open pit removed from scope of study
- Reduction of concentrate products from four to two; recovery of barite and sulphide (pyrite) concentrates deferred.
- Veovaca open pit, barite recovery and sulphide (pyrite) recovery to be considered in a future development phase
- 48% of revenues from payable silver and gold
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 was modified to accommodate new lower (ingress) and upper (egress) declines for optimised access, which also improves operational flexibility and safety.
The Ore Reserve tonnage of Rupice has decreased from 8.4 Mt to 7.3 Mt, while the Ore Reserve grade increased from 463g/t AgEq to 485g/t AgEq. This was due to the application of updated Net Smelter Return (“NSR”) cut- offs by ore type determined during geo-metallurgical domaining and metallurgical testwork. The average dilution factor increased from 10% to 13%, taking into account the potential spalling of backfill from adjacent primary stopes when mining secondary stopes.
An additional third decline will be built, replacing the previously considered raisebore, dedicated solely for ventilation. Use of a ventilation decline rather than the vent-raisebore removes 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.
For further information please visit: https://www.adriaticmetals.com/