Variscan Mines Secures Crucial Permit to Restart San Jose Zinc Mine in Spain
Variscan Mines has secured government approval for its Preliminary Mining Plan, enabling critical pre-works and trial mining at the San Jose Mine in Spain. This milestone accelerates the company’s strategy to restart production with minimal capital expenditure.
- Government of Cantabria approves Preliminary Mining Plan (Anteproyecto)
- Permits pre-works, development, and underground trial mining at San Jose Mine
- Leverages existing infrastructure to minimise capital expenditure
- Supports concurrent permitting processes, avoiding delays
- Mine Restart Study publication expected to outline early cash flow plan
Permitting Milestone Unlocks Mine Restart
Variscan Mines Limited (ASX, VAR) has achieved a significant regulatory breakthrough with the Government of Cantabria’s approval of its Preliminary Mining Plan, known locally as the Anteproyecto, for the San Jose Mine Restart in northern Spain. This approval is a crucial step forward, granting Variscan the green light to commence essential pre-works, site development, and underground trial mining activities ahead of full-scale production.
The Anteproyecto complements previously granted mining licences and restoration plans, collectively forming a robust permitting framework that allows Variscan to adapt existing mine infrastructure. This approach aligns with the company’s strategy to leverage a former producing asset, minimising upfront capital expenditure while preparing the mine for larger-scale operations.
Strategic Advantages and Operational Readiness
By securing this approval, Variscan can now undertake critical underground development tasks such as refurbishing locomotives and haulage systems, installing power and communication networks, and enhancing safety and drainage systems. These activities are designed to ensure safe and efficient mine access and operation, setting the stage for trial mining and stockpiling of zinc ore.
Importantly, the permitting progress allows Variscan to run additional environmental and operational approvals in parallel, avoiding costly delays and maintaining momentum. The company’s strong relationship with the Cantabrian authorities underscores a collaborative regulatory environment supportive of revitalising zinc mining in the region.
Project Context and Future Outlook
The San Jose Mine is part of the broader Novales-Udias Project, a zinc-lead exploration and development initiative situated in the Basque-Cantabrian Basin. The project benefits from proximity to established infrastructure, including the nearby Reocin Mine and the San Juan de Nieva zinc smelter operated by Glencore. Variscan’s recent JORC-compliant resource estimate highlights a substantial zinc resource base, reinforcing the project’s potential as a near-term producer.
Looking ahead, Variscan plans to publish a comprehensive Mine Restart Study, which will incorporate metallurgical and geotechnical test results to outline a realistic pathway for early cash flow generation from small-scale production. This study will be pivotal in guiding the final mining plan submission and securing the Environmental Impact Assessment approval necessary for full-scale operations.
Managing Director Stewart Dickson emphasised the milestone’s significance, noting the company’s commitment to sustainable development and its constructive engagement with local communities and government bodies. The approval marks a tangible step towards repositioning Variscan as a cash-flow positive zinc producer with exploration upside.
Bottom Line?
With permitting hurdles cleared, Variscan is poised to translate its zinc resources into production and cash flow, but key environmental approvals remain on the horizon.
Questions in the middle?
- When will the Mine Restart Study be published, and what production targets will it set?
- How will environmental impact assessments influence the timeline and scale of operations?
- What are the prospects for expanding resources beyond the current JORC estimate?
