Adriatic Metals has been granted an exploration permit for additional mining concession areas as part of its Vares silver-zinc-lead development project in Bosnia and Herzegovina. The dual ASX-listed company in London was awarded the concession areas covering 32 square kilometers last year and has already completed a first helicopter-borne magnetic and radiometric geophysical survey across the new land.
Adriatic says receiving the exploration permit from the country’s Federal Ministry of Energy, Mines and Industry increases her overall exploration land holdings to 41 km² and means she can now get boots on the ground. land for channel sampling and drilling of the newly acquired land.
Previous preliminary exploration done prior to last year’s exploration permit application included geochemical sampling of soil chips and rocks and field mapping.
Adriatic says reconnaissance work has detected several potential targets.
Data from the recent radiometric survey – conducted in April this year – also supported the company with a market cap of $ 576 million.
It indicates a potential alteration corridor that crosses the center of the now enlarged exploration permit area, estimated to be approximately 22 km in direction.
Initial analysis of the radiometric survey, designed primarily to map alteration, suggests that known resources and existing exploration prospects at Vares generally overlap the edges of potassium-rich alteration hotspots.
According to the Adriatic, these borders occur where the weathering conditions seem to be the most suitable for hosting massive sulphide-type mineralization.
The initial observation not only indicates the distribution of existing exploration targets, but also indicates several new areas of interest that remain to be explored.
Adriatic Metals Managing Director Paul Cronin said: “I am particularly excited by the first results of the radiometric survey, which better identified the size and continuity of the alteration system known from the Vares project. The boundaries of this alteration corridor are strongly correlated with previously identified mineralization and our existing exploration targets. This has identified exciting new target areas, which we will pursue with further fieldwork and update the market in due course. “
Adriatic last week landed a planning permission for the key Rupice underground polymetallic deposit in Vares, the penultimate approval before she could secure a very large mining or mining permit.
The company has already obtained an exploitation permit for the Veovaca open-pit deposit, which is smaller and located near Vares.
Management expects to file a final feasibility study on the development of the proposed Vares project during the September quarter of this year.
Projections from last year’s pre-feasibility study on Vares included eye-catching EBITDA of an average of US $ 251 million per year for the first five years of metal concentrate production and a pre-capital cost. production of 173 million US dollars for mining construction and processing. .
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