Variscan Mines Unveils High-Grade Zinc Hits and Gains Cantabrian Government Backing
Variscan Mines Limited reported standout high-grade zinc and lead drill results from its Novales-Udias Project in northern Spain, alongside strong governmental support that bolsters its mine restart ambitions.
- Maiden underground drilling at Udias Mine reveals significant zinc-lead mineralisation outside current resource estimates
- Exceptional assay results from San Jose Mine’s La Caseta zone highlight potential feeder zones
- Government of Cantabria publicly endorses Variscan’s plans to recommence mining operations
- Mine restart studies advance with metallurgical and geotechnical work underway
- Quarterly exploration expenditure totals $454,000 with no mining production activities
Exploration Breakthroughs at Udias and San Jose Mines
Variscan Mines Limited (ASX:VAR) has delivered a compelling update for the March 2025 quarter, reporting high-grade zinc and lead intersections from maiden underground drilling at the Udias Mine, part of its Novales-Udias Project in northern Spain. The initial five diamond drill holes at Udias returned significant mineralisation, including a standout intercept of 20.1 metres grading 8.22% zinc and 1.72% lead. Importantly, these results lie outside the Company’s existing Mineral Resource Estimate (MRE), signaling promising potential for resource expansion.
Meanwhile, drilling at the San Jose Mine’s La Caseta zone yielded the highest assay result by width and grade recorded by Variscan to date at the project: 15.3 metres at 17.42% zinc and 4.40% lead. This exceptional intercept supports the identification of a probable feeder zone, a structural conduit for metal-bearing fluids, which could underpin further discoveries and resource upgrades.
Strategic Advancement Towards Mine Restart
Beyond exploration success, Variscan has made significant strides in advancing mine restart studies. The Company is progressing metallurgical testwork across multiple European laboratories, including ore sorting trials with TOMRA in Germany and flotation optimisation, to validate recovery assumptions and inform processing plant design. Concurrent geotechnical assessments indicate strong host rock competence, suggesting minimal ground support will be required for initial mining operations.
These technical efforts align with Variscan’s dual-track Explorer-Producer strategy, aiming to fast-track a return to production while simultaneously expanding the resource base. The phased approach is designed to generate early cash flow to sustain ongoing exploration and development activities.
Governmental Endorsement Bolsters Permitting Confidence
Variscan’s progress has been further validated by strong public support from the Government of Cantabria. Following high-level meetings with regional officials, including the President of Cantabria and the Regional Minister for Industry, the government expressed a clear commitment to revitalising mining in the region and backing Variscan’s plans to recommence operations at Novales-Udias. This endorsement enhances confidence in the permitting pathway and underscores a collaborative relationship between the Company and local authorities.
Financial and Operational Overview
During the quarter, Variscan spent $454,000 on exploration activities focused on underground drilling, geological mapping, and technical consulting. No mining development or production activities were conducted. The Company ended the quarter with $608,000 in cash, maintaining a runway of just over one quarter at current expenditure levels. While no immediate capital raising is planned, Variscan retains the support of its Board and key shareholders, positioning it to secure additional funding if required.
Looking ahead, Variscan anticipates updating its Mineral Resource Estimate later in 2025 to incorporate the recent drilling results, which could materially enhance the project’s valuation and development prospects.
Bottom Line?
Variscan’s high-grade drill success and government backing set the stage for a pivotal year in advancing Novales-Udias towards production.
Questions in the middle?
- How will the updated Mineral Resource Estimate impact Variscan’s project valuation and development timeline?
- What are the key milestones and regulatory hurdles remaining in the permitting process with the Cantabrian Government?
- Will Variscan pursue additional capital raising to extend its cash runway and accelerate development activities?
