Variscan Mines Nears Key Assay Results, Accelerates Udias Zinc Project Restart

Exploration Momentum Builds at Udias Mine

Variscan Mines Limited (ASX:VAR) has reported encouraging progress in its maiden underground drilling campaign at the Udias Mine, part of the broader Novales-Udias Project in northern Spain. Having commenced drilling in late 2024, the company has completed nine holes targeting high-grade zinc sulphide horizons previously untested by drilling. Core samples from five holes have been submitted for assay, with results expected imminently, marking a pivotal moment for the project’s resource expansion potential.

The drilling focuses on the southern end of the Udias Mine, specifically the upper A Level and the middle B Level, both of which remain outside the current Mineral Resource Estimate (MRE). Historical data and recent geological inspections suggest excellent continuity of mineralisation extending over 2 kilometres along strike, mirroring the style and grade of the adjacent San Jose Mine. This continuity hints at the possibility of significantly increasing the resource base once assay results are confirmed.

Parallel Assay Results and Geophysical Insights

Alongside Udias, Variscan has also submitted samples from 16 drillholes at the San Jose Mine, designed to test potential feeder zones within its Central Zone. These results are also due shortly, potentially providing further clarity on the project’s underground mineralisation and feeding into the updated MRE anticipated later this year.

Complementing drilling activities, a comprehensive Deep Ground Penetrating Radar (DGPR) survey has been completed at the Guajaraz project in Castilla-La Mancha. This geophysical work aims to delineate subsurface structures such as faults and veins that could guide future exploration drilling, with results expected by the end of the current quarter.

Advancing the Mine Re-Start Study

Variscan is simultaneously progressing a Mine Re-Start Study, critical for transitioning from exploration to production. Key workstreams include metallurgical test work designed to validate historic processing data and introduce pre-concentration steps to improve zinc recovery and concentrate quality. Early indications suggest that pre-concentration could reduce capital expenditure by lowering processing throughput requirements.

Geotechnical testing is also underway to assess rock strength and stability, leveraging accessible underground workings to back-analyse historical stopes. These insights will inform mine planning and safety protocols, underpinning the feasibility of a phased production restart.

Strategic Outlook: Explorer-Producer Model

Variscan’s updated Explorer-Producer strategy reflects a pragmatic approach to scaling operations. By leveraging its advanced, high-grade former mines and expanding exploration in underexplored areas, the company aims to fund incremental growth cycles through production cash flow. This model addresses the funding gap often faced by exploration companies and positions Variscan to capitalize on both near-term production and longer-term resource growth.

Managing Director Stewart Dickson expressed optimism about the company’s trajectory, highlighting the rapid progress since acquiring key licences and the potential to add significant tonnage beyond the current resource. The proximity of the Novales-Udias Project to established infrastructure, including the nearby zinc smelter operated by Glencore, further enhances the project’s economic appeal.

Looking Ahead

Investors and analysts will be watching closely for the imminent assay results from both Udias and San Jose Mines, which will be critical in validating the resource expansion thesis. Additionally, forthcoming metallurgical, geotechnical, and geophysical data will provide further clarity on the project’s development pathway and capital requirements. Together, these milestones will shape Variscan’s ability to transition from exploration to production and unlock value from one of Europe’s highest-grade zinc deposits.