Variscan Secures 69 Drillholes Approval, Extends Mining Licence to 2035
Variscan Mines has secured official approval of its Restoration Plan for the Novales-Udias Zinc Project in northern Spain, unlocking the path to mine production restart and extensive exploration drilling.
- Restoration Plan approved by Government of Cantabria
- Mining licences valid until 2035 with potential 30-year extension
- Approval enables recommencement of mining operations
- 69 drillholes (~13,800m) surface drilling campaign authorised
- Project significantly de-risked, advancing towards cash-flow generation
Regulatory Breakthrough for Novales-Udias
Variscan Mines Limited (ASX, VAR) has achieved a pivotal milestone with the official approval of its Restoration Plan over the San Jose and Udias Mines at the Novales-Udias Zinc Project in Cantabria, northern Spain. This regulatory endorsement from the Government of Cantabria provides clear and unambiguous permitting to proceed with exploitation and the recommencement of mine production, a critical step in Variscan’s strategy to transition from explorer to producer.
Environmental and Operational Assurance
The Restoration Plan addresses the management of mining waste and the rehabilitation of areas impacted by mining activities, extending through to the expiry of the mining concession in 2035, with the possibility of two further 30-year extensions. The environmental authority’s report highlighted that the plan poses no significant impacts on protected natural areas, socioeconomics, or cultural heritage, while minor effects on climate and biodiversity are manageable under strict adherence to hydrological safeguards.
Exploration and Resource Expansion
Alongside the Restoration Plan approval, Variscan has received permission for an extensive surface drilling campaign comprising 69 diamond drillholes totaling approximately 13,800 metres. This program targets the zinc-rich dolostone Reocin Formation, aiming to expand the existing Mineral Resource Estimate around the San Jose Mine and test mineralised zones extending towards the Udias Mine and satellite workings. These efforts are expected to enhance resource confidence and underpin future production plans.
Strategic Outlook and Next Steps
With mining licences secured through 2035 and a clear environmental framework in place, Variscan is positioned to advance its Mine ReStart Scoping Study. This study will outline a realistic pathway to early cash flow from small-scale production, setting the foundation for sustainable growth and further exploration upside. Upcoming milestones include metallurgical and geotechnical test results and additional underground drilling assays, which will provide greater clarity on project economics and operational feasibility.
Local Support and Jurisdictional Confidence
Variscan’s Managing Director Stewart Dickson emphasised the constructive relationship with the Government of Cantabria and local communities, noting the region’s strong commitment to revitalising zinc mining. The project benefits from existing infrastructure and proximity to the San Juan de Nieva zinc smelter operated by Glencore, enhancing logistical advantages for future production.
Bottom Line?
With regulatory and environmental hurdles cleared, Variscan Mines is poised to turn its high-grade zinc assets into a cash-generating operation, though upcoming studies will be critical to confirm the project’s full potential.
Questions in the middle?
- How will the Mine ReStart Scoping Study shape Variscan’s production timeline and capital requirements?
- What impact will the extensive drilling campaign have on resource upgrades and mine planning?
- How might environmental compliance conditions influence operational scheduling and costs?
