Hartleys upbeat about Adriatic Metals’ prospects

By Trevor Hoey. Published at Oct 10, 2019, in Mining

Finfeed reported a fortnight ago that zinc polymetallic explorer and developer Adriatic Metals (ASX:ADT) had received promising results from metallurgical test work on samples from its Rupice and Veovača deposits.

Analysts at Hartleys noted that the results were either in line with their expectations, or in the case of precious metals, exceeded the assumptions they had modelled.

The deposits are part of Adriatic’s Vareš Project that is close to the mining town of Vareš in Bosnia and Herzegovina.

The project comprises a historic open cut zinc/lead/barite and silver mine at Veovača and Rupice — an advanced proximal deposit which exhibits exceptionally high grades of base and precious metals.

The objective of the test work programs was to establish basic processing data, to test processing options and to develop and test a flowsheet that would demonstrate that a marketable concentrate could be developed from each deposit.

Hartleys increases price target

Hartleys resource analyst Paul Howard was impressed with the recoveries achieved, saying, ‘’ Preliminary metallurgical test work results from Adriatic Metals PLC’s (ADT) Vareš Project have demonstrated that 82% of zinc metal and 68% of gold can be recovered to concentrates at the Rupice deposit; as well as lead (90%), copper (83%), silver (93%) and barite (72%).

‘’The results also demonstrate that 91% of the zinc metal at Veovača can be recovered along with lead (82%) and barite (71%).

‘’The lock cycle testing has met our expectations and exceeded what was anticipated for precious metal recoveries in our model assumptions, particularly for silver.

‘’Adriatic has highlighted that the test work is preliminary in nature and expects to optimise these results ahead of a Scoping Study, which is due before years’ end.’’

While zinc is the main game, above expectations precious metal recoveries is certainly good news with gold (green line) and silver (black line) both up about 25% on a year-on-year basis with gold holding around the US$1500 per ounce mark .

Having run the ruler across the numbers and taken into account the release of initial mining studies by December, Howard increased his price target to $1.50, representing a 50% premium to the company’s closing price on Wednesday.

Barite could be a bonus

While the company has reported excellent recovery of precious metals and copper at Rupice with further metallurgical optimisation test-work underway, the imminent release of a scoping study could be an even more significant share price catalyst.

The expected payability adjusted recoveries from all concentrates for Rupice are:

All Rupice concentrates exceed current specifications at a range of European and Chinese smelters, and in the case of barite, exceeding the API specification.

Howard also noted that barite was of a very high quality, but further work was required to ascertain what contribution it could make as a commercially viable commodity.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!