Historic Data Acquisition De-Risks Variscan’s Zinc Expansion but Verification Remains Key

Historic Data Acquisition Boosts Exploration Prospects

Variscan Mines Limited (ASX, VAR) has taken a major step forward in its northern Spain zinc-lead project by acquiring 146 historic surface drillholes, covering over 52,000 metres, from archives at the University of Cantabria. This trove of data, largely from the former Reocin Mine operated until 2003, reveals multiple high-grade zinc and lead intercepts, particularly on the Hipolita licence, which overlays the footprint of the world-class Reocin deposit.

The acquisition represents a significant strategic advantage, saving Variscan an estimated A$12.9 million in drilling costs and years of fieldwork. More importantly, the historic results lie outside the current Mineral Resource Estimate (MRE), suggesting substantial potential to expand the resource base and underpin a district-scale zinc-lead development opportunity.

High-Grade Intercepts Highlight Reocin Extensions

The Hipolita licence accounts for 90 of the 146 drillholes and nearly 40,000 metres of drilling. Assays include standout intercepts such as 24.0 metres at 12.3% zinc and 0.4% lead, and narrower but exceptionally rich zones like 2.7 metres at 36.3% zinc and 2.2% lead. These results point to possible unmined extensions of the Reocin deposit, one of Spain’s largest and richest Mississippi Valley Type (MVT) zinc-lead deposits.

While detailed mine plans from the original Reocin operations are lacking, historical reports indicate at least 2.5 million tonnes of reserves remained at closure, grading 8.5% zinc and 0.9% lead. The current zinc price environment, trading at more than three times the price at the time of Reocin’s closure, further enhances the economic attractiveness of these extensions.

District-Scale Zinc Opportunity in Cantabria

The Novales-Udias Project, centred on the San Jose Mine and now expanded with the new licences, sits within a proven zinc district characterized by multiple deposits along a 9-kilometre mineralised trend. The integration of historic drilling data across Hipolita, Esperanza, and Ana Isabel licences broadens the scope for discovery and development beyond the current resource footprint.

Variscan’s strategy is to leverage this district-scale potential by initially restarting production at San Jose Mine and then scaling operations to include satellite deposits. The historic drilling database now totals 1,221 drillholes and 138,570 metres, providing a robust foundation for efficient exploration and resource definition.

Next Steps Toward Production Restart

Variscan is advancing underground drilling at the Udias Mine, conducting metallurgical and geotechnical test work, and preparing a Mine Re-Start Scoping Study. These efforts aim to validate the resource expansions suggested by the historic data and support a phased production ramp-up.

Managing Director Stewart Dickson emphasized the value of the historic data acquisition, noting it as a “compelling de-risked, brownfield opportunity” with strong potential for near-term production and long-term growth. The company is also considering twinning some historic drillholes to verify assay results and enhance confidence in the data.