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A key permit granted by the Bosnian government will now unlock operations at Adriatic Metals’ (ASX:ADT) Veovaca tailings facility.
Adriatic’s last tailings facility plans were ultimately upended by environmental concerns when the country’s constitutional court complicated matters, given a state forestry land dispute became part of that story.
Now, the alternative location for its facility has been selected, and, approved. The facility is attached to the company’s Vares silver project. “The Veovaca [facility] does not involve the use of state forestry lands and the Company owns the surface rights,” the company explicitly wrote on Friday. The new tailings facility is located in a now unused open cut mine, called Veovaca.
Having worked at haste since July to get a new facility designed, the company’s new facility now has all the permits it needs – at least for its first phase.
Phase I will see tailings deposited in the pit mine asset for four to five years of production; the overall life of the facility is expected to be 10 years. The cost of building Phase I of the facility comes in at US$5M with a six month build time.
In the meantime, an existing smaller facility at the Vares Processing Plant will be used. It’s estimated to have enough room for waste materials into mid-2025.
“I’m pleased to confirm that the permitting for the Veovaca TSF at the Vares Silver Operation has been fully approved by the Federal Government of Bosnia and Herzegovina,” Adriatic CEO Laura Tyler said.
“I want to express my gratitude to the ministries for their support. The Veovaca TSF, located in a former open pit with an environmental legacy, will enable us to manage tailings for over 10 years, based on our current production capacity.”
ADT last traded at $4.13/sh.
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