Adriatic Metals is continuing construction on its Vares lead-zinc-barite project in Bosnia & Herzegovina, and is mobilising underground mining equipment.

The company has begun construction of the 25-kilometre haul road connecting the Rupice deposit to Vares processing plant site.

"Site preparation activities at Rupice Surface infrastructure have progressed well and with the recent mobilisation of [underground mining contractor] Ciftay, the first phase of underground construction is due to start immediately," chief executive Paul Cronin said.

Adriatic Metals has completed ground support installation around the lower portal to the Rupice underground mine and will begin the development of the decline by the end of the quarter, the company said.

The first phase of mining, which includes the concurrent construction of two declines from the upper and lower portals to the two parallel production levels of the orebody, will be completed during the December quarter.

The second phase of mining will begin in the March quarter of 2023, and will see the construction of the production levels, cross cuts, ore development drives, and the installation of underground infrastructure. Adriatic plans to mobilise the majority of underground mining fleet is mobilised.

The third mining phase, beginning in the June quarter of 2023, will include production mining in ore and backfilling.

Ciftay will mobilise infrastructure and equipment, including equipment for the first phase of mining and temporary surface facilities such as offices, by the end of this quarter.

Ventilation fans will be delivered to the projects in the next two weeks, and Adriatic is nearly completed with installing its surface water distribution system. Adriatic has also installed a 4G telecommunications mast.

Diesel generators have been purchased and will be delivered shortly. Diesel will power operations until Adriatic electrifies the 35kV buried cable grid connection in the March quarter of 2023.

Construction on the Vares processing plant will begin in the coming weeks, the company said. The plant will be built on existing infrastructure from the previous processing facilities on site. Adriatic will name a construction contractor for the plant shortly.

Adriatic will ship zinc concentrate in bulk, while the silver-lead concentrate will be shipped in containers. All metals will be shipped from the port of Ploce in Croatia.

Adriatic Metals has off-take agreements with Glencore, Trafigura, Boliden, and Transamine.