REG - Adriatic Metals - QUARTERLY ACTIVITIES REPORT

Adriatic MetalsAnnouncement

31/10/2022 07:00

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RNS Number : 5783E  Adriatic Metals PLC  31 October 2022

31 October 2022

ADRIATIC METALS PLC

(ASX:ADT, LSE:ADT1, OTCQX:ADMLF)

QUARTERLY ACTIVITIES REPORT

For the three months ended 30 September 2022
("Q3" or "Quarter")

Q3 HIGHLIGHTS

 

Vares Silver Project, Bosnia & Herzegovina:

·    Vares Silver Project construction activities update:

·    Project construction 45% complete and progressing rapidly

·    Lower Decline development advancing well, 207m already completed

·    Upper Decline development well underway, with improving ground
conditions and advance rates, 100m completed to date

·    Approximately 72% of capital expenditure awarded, pending award or
quoted

·    Staff headcount at 177 and growing; contractor count at 188

·    First concentrate production on track for Q3 2023, as anticipated.

Corporate

· Final Project cost estimate marginally increased to $173m

· Cash balance as at 30 September 2022 of US $65.8 million

Updates Post Period

·   Site visit by 30 investors and analysts from 10 - 11 October 2022

·   Commencement of building portals at Vares Processing Plant underway

·   Continuing high-grade thick massive sulphide intercepts at Rupice
Northwest

·   Drawdown condition precedents closing, the Company anticipates being in
a position to drawdown from November as required

 

Paul Cronin, Adriatic's Managing Director and CEO commented:

"I am delighted to report excellent construction progress continued at our
Vares Silver Project over the quarter. Surface infrastructure and decline
development at Rupice is rapidly progressing and remains firmly on schedule,
while works have finished to maintain continuous operations throughout the
coming winter months.

 

"Pleasingly, we are nearing the halfway completion mark at Vares, which is an
important milestone for the Company, with 72% of the total construction
capital committed, to date.

 

"Like most industries, we have experienced some cost inflation, however
management does not envisage the total capex for the Vares Project to increase
materially. The current estimate to completion is $173 million, which is well
within our contingencies and an impressive feat in the current economic
climate. With global supply chains under stress, we are taking a prudent
approach with production scheduled to commence in Q3 2023."

 

"Given the continued supply chain, inflationary and economic challenges
globally, I am enormously proud of our team's huge achievements to date, which
are indicative of our absolute determination to deliver the Vares Project
successfully in 2023."

 

Adriatic Metals PLC (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) ("Adriatic" or the
"Company"), a well-funded development and exploration company building the
world-class Vares Silver Project, is pleased to provide the following
Quarterly Activities Report ("QAR") that summarises the progress made and
reported during the three months ended 30 September 2022 ("Q3" or "Quarter").

1.     EXPLORATION, CONFIRMATION AND DEFINITION DRILLING AT RUPICE

The Company continues to progress parallel programs focused on
resource/reserve infill and resource extensions to the northwest of the
current Rupice Mineral Resource Estimate ("Resource"). 2022 has seen success
across each program, resulting in the clear potential to extend mine life and
optimise the mine plan ahead of first production in 2023. The level of
knowledge gained to date at Rupice Northwest and Rupice is at the level where
accurate targeting has produced successful results from the majority of holes.
This highlights the robustness and continuity of the mineralisation system.

 

Over 7,000m of resource infill drilling has been completed this year, with
encouraging results that continue to confirm grade thickness and continuity
within the existing Resource. Resource extension drilling to the northwest of
Rupice has intersected mineralisation with similar tenor, thickness and
continuity as seen in the Resource. Over 5,700m in 15 exploration holes have
been completed on Rupice Northwest this year, with assays pending imminently
(released subsequent to the quarter). This year's successful results will feed
into an updated Mineral Resource Estimate that will be completed for Q1 2023
and will include Rupice Northwest.

 

Looking ahead, the Company expects to drill through winter, with a continued
focus on Rupice Northwest and extension opportunities around the existing
Resource. Near-mine exploration will be supplemented by underground grade
control drilling that will commence in early Q1 2023. This will provide
improved orebody definition, minimise ore dilution, and geotechnical data to
inform ground conditions in planned development.

 

On regional exploration, a ground gravity survey has generated very promising
results at the Semizova Ponikva (SP1 and SP2) targets that correlate with
surface geochemical anomalies. First pass drilling is planned for next year at
these potential Rupice analogies.

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