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eURoPe focUs

Rebirthing the Bosnian artefact

driatic Metals Ltd sits on the cusp of
Arevitalising a relic of Bosnia’s mining
history with plans to start construction of
the Vares silver project by the end of this
year.
Adriatic snagged the final key permit for
the Rupice underground deposit in mid-
July, complementing the Veovaca deposit
which was already approved and waiting in
the halls. With a recently completed DFS
and ESIA to follow, first commissioning of
Vares is expected at the end of 2022.
Speaking to Paydirt, Adriatic executive
chairman Paul Cronin said the local gov-
ernment and communities had strongly
embraced the company’s quest to turn
back the clock on the historic project and
bring jobs back to the region.
“I think the local community is keen to
see how a modern company with modern
technology can advance the industry and
we’re certainly demonstrating that from an
exploration perspective,” Cronin said.
“Now it’s time that we demonstrate we The Rupice deposit, like the rest of Bosnia, is due for heavy snowfall in December
can do it from a production perspective.”
Adriatic’s investment in taking the pro- ers are enjoying the benefits of that. Government chose no replacement for GE.
ject towards production potentially poses “We started building relationships with This energy revolution is coupled with
30% of Bosnia’s total foreign investment. various ministries and having continual the closure of five other coal plants which
“It is a big deal,” Cronin said. “The lo- dialogue about what we’re doing. Late last are scheduled for replacement by solar
cal community are definitely supportive year we started to see a build-up of sup- power farms.
of what we’re doing, and that grassroots port from the Federal Government, with “There is an energy transition phase go-
support has sub-permeated up the levels the Prime Minister visiting the site and an- ing on in Bosnia at the moment and the
of government. I think Bosnia’s got a pretty nouncing his support for the mining indus- Ministry of Mines and Energy is looking at
bright future in terms of mining.” try in Bosnia.” companies that can absorb some of those
The fire in Cronin’s eyes is stoked by the If anything could slow Adriatic’s march job losses,” Cronin said.
encouraging numbers from a DFS pub- towards production, it would only be the “We’re looking at our own energy supply
lished last month which support an initial harsh snow expected to hit in December. and energy security in parallel. We recog-
10-year mining operation from the 7.3mt Cronin, however, holds faith in his team to nise with the shutting of the coal mines in
@ 485 g/t silver equivalent reserve. The stay on track and beat the race against time four years’ time there’s an opportunity to
capex is billed at $US168 million with pro- before first snowfall blankets the project. insert more renewables into the network
duction set to average 14,975 tpa across “A lot of what we’re doing here is weather here.”
the first five years for an AISC of $US7.30/t dependent, unfortunately,” he said. Cronin said the energy revolution in
silver equivalent. Post-tax NPV is estimat- “We need to get up there, we need to lay Bosnia had Adriatic looking at its own op-
ed at $US1.06 billion, with an IRR of 134% the surface foundations and make sure that portunities to build solar, wind and hydro
and payback in just 0.7 years. cement cures before we get our first snow- infrastructure.
This outlook is supported by Adriatic’s fall. “I think that will be an exciting chapter for
plan to take the Rupice deposit – histori- “If we remain on the path that we’re on at us…looking at how we can get ourselves
cally mined in open pit – underground. the moment, we will get a lot of that surface to be 100% renewable, if not before pro-
Cronin said the opportunities under- infrastructure done before Christmas and duction, then shortly after commencement
ground were higher grade and Adriatic’s that will enable us to just carry on with the of production,” he said.
fast work had helped dispel the investor buildout and we will certainly meet our com- “I’m trying to get our staff to think green
anxieties that typically surround European missioning target.” in everything that we’re doing.
projects. The Vares comeback story is also timely “It’s amazing the ideas that come
“The key risk for investors when we for Bosnia as the Government pushes for through from our staff that are adamant
IPO’d in Australia in 2018 was the jurisdic- closure of carbon-intense operations such they want to be part of that green revolu-
tion and the permitting process,” he said. as coal-fired power stations. tion. It’s fantastic when you’ve got a whole
“I think Australian investors have had In July, a $US1.1 billion plan to erect a company thinking like that because you’re
mixed results with projects in Europe, but I coal plant got stuck in the mud after US going to come up with some pretty novel
think we’re making great progress. conglomerate GE pulled out of the deal. solutions.”
“To go from discovery in August of 2017 The plan, first pencilled in 2014, involved – Fraser Palamara
to a construction start by October is pretty China Gezhouba Group which has now
rapid progress and I think our sharehold- been left out in the cold after the Bosnian

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