VAREŠ Eastern Mining Company Granted Concession for Precious Metals

SARAJEVO, (Patria) - Eastern Mining Company signed Annex 4 of the Concession Approval agreement with the Ministry of Economy of Zenica-Doboj Canton, which, in addition to zinc, lead, and barite, also grants rights to gold, silver, and copper, confirmed by years of geological research. The Annex resolves all legal ambiguities that arose due to the non-alignment of cantonal and federal levels of government regarding ore rights, and also removes the obligation to commence exploitation by May 2020.

Furthermore, the Annex includes an increase in the minimum annual concession fee from the current KM 1.50 to KM 3.90 per ton of raw ore.

“With this agreement, Zenica-Doboj Canton has shown a clear determination to support the opening of the mine in Vareš,” stated the General Director of Eastern Mining Company, Miloš Bošnjaković.

At the time of the initial Concession Approval in 2013, the historical information available for the Vareš mine did not contain sufficient analyses for gold, silver, and copper, and consequently, the Approval specifically pertained to lead, zinc, and barite. However, since the beginning of Eastern Mining's exploration and testing in 2017, significant reserves of precious metals have been identified at the Rupice site, as highlighted in the mineral reserve estimates in July 2019. This Annex now aligns the protocol of the Federal Mining Law with the commercial terms of the Zenica-Doboj Canton Concession Approval.

Eastern Mining d.o.o. is a Bosnian-Herzegovinian exploration and development company owned by Adriatic Metals from Great Britain. The company's primary goal is focused on the exploration and exploitation of mineral resources in the municipality of Vareš. The focus of activities in 2020 will be further geological exploration, both within the existing concession area and in the wider regional area, all with the aim of increasing confirmed ore reserves and extending the lifespan of the new mine. According to the current plan, the opening of the mine and the start of production are planned for 2022.