28th Oct 2024 11:49
(Alliance News) - Adriatic Metals PLC on Monday reported an increase in quarterly ore tonnes mined as it continued ramping up production at its Vares Silver Operation.
The Balkans-focused exploration & development company reported production progress for its third quarter, with ore mined up significantly to 63,100 tonnes from 8,300t the prior quarter.
This was mined at 289 grammes a tonne of silver and 2.9g/t of gold.
Ore milled also improved, more than doubling to 21,100t from 9,500t.
Adriatic noted the continuation of its production ramp up at its Vares Silver operation in Bosnia, adding that commercial production remains on track for the fourth quarter of this year.
For 2024 the firm is guiding 180,000t mined, with this figure scaling to between 750,000t and 800,000t for 2025.
Its cash balance for the period declined on-quarter by 60% to USD23.8 million from USD59.9 million. The firm added that its USD25 million additional debt facility from Orion Mine Finance remains undrawn.
However, USD120m of senior secured debt has been drawn from Orion to date, with the first repayment of USD18 million scheduled for December 31 this year.
Adriatic Chief Executive Laura Tyler said: "Having spent the last few months on-site at the Vares Silver Operation, I am proud of the significant strides made throughout the quarter.
"We successfully mined our first stope, resulting in a substantial production increase to 63,100t and there was a notable advancement in underground development. Additionally, the processing plant is ramping up well with a ... rise in ore milled and recoveries continually improving.
"Despite these successes, we faced a number of challenges, including a regrettable on-site fatality in August. In response, we have implemented substantial upgrades to contractor management and major hazard controls as part of our ongoing commitment to enhancing health and safety standards."
Last Thursday the firm revealed it had obtained the necessary permits for phase 1 of the Veovaca tailing storage facility from the Federal Ministry of Energy, Mining & Industry of Bosnia & Herzegovina.
Shares in Adriatic were trading down 5.4% at 209.00 pence on Monday morning in London.
By Christopher Ward, Alliance News reporter
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