The study highlighted a post-tax net present value of over US$1 billion against an initial capex of $173 million, with payback in just 1.2 years.
The ASX and LSE miner announced an internal rate of return of 113% and annual EBITDA of $251 million over the first five years of the project's 14-year mine life.
Revenue from the polymetallic project, which consists of two main deposits - Rupice and Veovaca - will come mainly from silver and zinc. The company said revenue would be split 31% silver, 25% zinc, 14% gold, 14% lead and the rest from copper and barium sulphate.
Adriatic's price assumptions include silver at $24/oz and gold at $1900/oz, which Canaccord Genuity described as conservative.
"Despite COVID-19 hampering efforts of mining companies around the globe, I am pleased that we are able to deliver a hugely positive PFS, with improved economics in comparison to our 2019 scoping study, thus showing that Vares is indeed a world class project," said Adriatic managing director Paul Cronin.
Canaccord said the study was mostly in line with its expectations, aside from a 30% rise in operating costs to $117 per tonne.
Canaccord maintained a speculative buy recommendation. Its previous price target was A$3.05.
Adriatic closed 7% lower at $2.21 yesterday.