Boliden and Adriatic Metals signed an agreement over the Vares Silver Project

Boliden and Adriatic Metals Plc have signed an agreement on the purchase of zinc concentrates from the Vares Silver Project. Based on this cooperation Boliden will be able to produce metals like zinc to the highest ESG (Environmental, Social, and Governance) standards.

Vares Silver Project

The Vares Silver Project is located in the Vares municipality in Bosnia and Herzegovina. It consists of 41km² of concession area (Figure 1), which is centered around the town of Vares.

Figure 1. Vares Project Permits. Source: Adriatic Metals official

The Vares Silver Project consist of two Mineral Resources: the Rupice underground deposit (“Rupice”) and the Veovaca open pit deposit (“Veovaca”). The two deposits are located approximately 11 km apart. Veovaca was a previously operating open pit mine producing lead, zinc and barite concentrates. It ceased operations in 1988. The potential economic viability of the Rupice deposit was only determined in 2017

According to Adriatic Metals the mine plan is focused on mining the high-grade sections of the Rupice deposit as early as possible and providing consistent high-grade feed to the Vares Processing Plant for as long as possible. The Ore Reserve tonnes of Rupice is evaluated of c.a. 7.3 Mt, and Ore Reserve grade at 485g/t AgEq. The average dilution factor increased from 10% to 13%, taking into account the potential spalling of backfill from adjacent primary stopes when mining secondary stopes. 

Mining method

Access to the underground workings will be via two declines developed from the surface accessing the orebody via further development of ramps, level access drives and footwall drives. All the development access will be suitable for trackless equipment.

The underground stoping will be divided into two main mining method zones: Transverse Longhole Open Stoping zone, and Longitudinal Longhole Open Stoping zone.

Transverse zone will be used in areas where the ore zone thickness is greater than 20 m. Stopes will be oriented in a transverse fashion with stope access drives orientated from the footwall towards the hanging wall, perpendicular to the general orebody strike.

Longitudinal zone will be used in areas where the ore zone thickness is less than 20 m. Stopes will be oriented in a longitudinal fashion along a strike drive.

Project in numbers

Ore reserve:7.3Mt at 485 g/t AgEq

Mining Rate: 800 000 tons per year

Life of mine: 10 years.

Mining method: Transverse Longhole Open Stoping and Longitudinal Longhole Open Stoping

Head Grades: Ag 202 g/t, Zn 5.7%, Pb 3.6%, Au 1.9 g/t, Cu 0.6%, Sb 0.2%

The Vares Processing Plant will be built on the site of the previously operated processing plant. The historical plant treated ore from the Veovaca open pit.

The Rupice Underground Mine, which is beneath the Rupice Surface Infrastructure site, is situated in the northwest corner of the Vares Concession. It will be connected to the Vares Processing Plant via a 24.5 km haul-road.

Profitability and growth in a responsible manner

Vildana Mahmutovic, Head of Sustainability at Adriatic Metals Plc Mines stated: ”Boliden stands out in a demanding industry landscape with leading ESG performance in its supply chains. We are delighted to have Boliden with us, with the overall aim of creating profitability and growth in a responsible manner, with consideration for people, the environment, and society—all targets that the Vares Silver Project will fulfill. Adriatic Metals Plc Metals operations are well in line to support Boliden’s leading sustainability standards and best practices”

New mine and smelter expansion

José Tinoco, Manager Zinc and Lead Concentrates at Boliden stated: “This mine (Vares Silver) project will support our smelter expansion project in Odda as well as our ESG targets. We are committed to contributing to a sustainable society by producing metals together with suppliers that share this vision.”

In 2021 Boliden informed that it was expanding its Odda smelter to produce green zinc. Production capacity is being increased by 75% to 350 kilotons per year. Moreover, Oddan is now said to be among the most climate-friendly sites in the world.