The Adriatic Metals PLC (ASX: ADT) share price has zoomed more than 10% higher today. The bullish price action follows the company’s announcement of a significant footprint to its silver project.
What did Adriatic announce?
Earlier today, Adriatic reported the addition of a significant footprint to its Vares Silver Project in Bosnia & Herzegovina.
According to the update, the company’s application for a significant land extension was approved by the government of Zenica-Doboj Canton. As a result, Adriatic has added another 32.12sq km to its project, bringing the total area of concessions to 40.78sq km.
Adriatic’s management acknowledged the constructive work and said the company focus was on finding possible repeats of mineralisation.
Under the terms of the original concession agreement, Adriatic has 3 fields. Veovaca 1nad 2 and Rupice-Jurasavac Brestic. The approval of the second amendment to the concession will see these fields extend into adjacent areas.
The company said the expanded concession area contained historical targets, including an area between Veovaca and Rupice. Adriatic considered these concessions to be a high priority for further exploration and drilling. The company will actively pursue exploration permits following upcoming airborne geophysical surveys.
What does Adriatic do?
Adriatic is a precious and base metals explorer and developer. The company owns the world-class Vares Silver Project in Bosnia & Herzegovina, which is considered very pro-mining. The project comprises 2 high-grade deposits, located at Rupice and Veovaca.
As a result of its impressive resource inventory, Adriatec is looking to fast-track production at the Vares Silver Project. Results from the company’s 2019 scoping study found a net value estimation of US$917 million.
The Rupice deposit is of particular interest as it is located on a hillside. This allows mine sequencing to target high-grade ore from year 1 of drilling, allowing the company to payback capital.
The Adriatic share price is looking to close today’s session 10.23% higher at $2.37. Shares in Adriatic have performed strongly in 2020, surging more than 47% for the year.