Variscan Mines Expands Novales-Udias Project with Acquisition of New Licences Covering World-Class Reocín Mine
ASX:VAR – Variscan Mines Limited (“Variscan” or “the Company”) is pleased to announce the award of two new exploration licences – Ana Isabel and Hipólita – covering a combined area of 21.9km² in the Basque-Cantabrian Basin in northern Spain. This significant expansion increases the total tenement holding of the Novales-Udias Project to 111.1km², further strengthening Variscan’s footprint in one of Europe’s most prolific zinc regions.
Strategic Expansion in a Proven Zinc District
The new Ana Isabel licence directly adjoins existing Variscan tenements, enhancing the Company’s development optionality. The Hipólita licence is of particular importance, granting Variscan access to extensions of the globally significant Reocín Mine – a high-grade, former-producing zinc-lead operation.
The Reocín Mine historically produced approximately 62 million tonnes of ore at an average grade of 8.7% Zn and 1.0% Pb, with 2.5Mt of reserves reportedly remaining at closure in 2003. The licence acquisition provides strategic access to one of Europe’s most prospective Mississippi Valley Type (MVT) zinc districts.
Comments from the Managing Director & CEO
“The award of 2 new licence areas is another positive step forward in the growth of the Novales-Udias project. Whilst our immediate focus is seeking to bring the San Jose and Udias Mines back into production and early cashflow, we also want to develop the exploration upside and ensure significant scale. Our Explorer-Producer strategy is aiming to deliver a staged approach that facilitates earlier cash flow from production operations at San Jose and Udias to reduce risk and still achieve attractive financial returns whilst sustainably funding the development of the overall project. These new licences add to the long-term opportunity by increasing scale in this proven, high grade zinc district.”
“The Ana Isabel licence is contiguous and highly prospective which has historically returned positive drill results. The Hipólita licence facilitates access to extensions to the former producing Reocín Mine which could add tonnage to the mineral resource inventory. Following on from the recent statement that the Government of Cantabria fully supports the Company’s plans to recommence mining, the award of the new licences is a further demonstration of the strength of the relationship between Variscan and the regional government and the shared commitment to advance production at one of the highest-grade zinc development assets in Europe”.
Geological Significance and Exploration Potential
The newly awarded Caborredondo II licences cover a portion of the Santillana syncline, a key geological structure in the zinc-rich Basque-Cantabrian Basin. The Hipólita licence is located along the southeast flank, adjacent to Reocín, while Ana Isabel sits on the mirrored northwest flank, both underlain by the same host carbonate units known to carry high-grade zinc mineralisation.
Zinc mineralisation in the area is dominantly sphalerite with subordinate galena, hosted in intensely dolomitized rocks affected by faulting and brecciation – ideal geological conditions for ore formation. These licences are expected to unlock exploration upside and long-term growth opportunities.
Leveraging Historical Data and Infrastructure
The Novales-Udias Project benefits from a wealth of historic geological and drillhole data, much of which is housed at the University of Cantabria’s School of Mines & Energy Engineering. This existing archive has already contributed to Variscan’s resource estimates and is being reviewed to inform upcoming exploration programs.
The new licence grants do not include mandatory minimum spending commitments and are valid for three years, with potential extensions for a further three years, subject to regulatory compliance and reporting.
Next Milestones for Novales-Udias Project
The Novales-Udias Project continues to advance with multiple deliverables in the pipeline, including:
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Geotechnical and metallurgical results for the San Jose Mine Re-Start (Scoping) Study
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Additional assays from ongoing underground drilling at the Udias Mine
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Finalisation of the Mine Re-Start (Scoping) Study
About us:
About Variscan Mines Limited (ASX:VAR)
Variscan Mines Limited (ASX:VAR) is a growth oriented, natural resources company focused on the acquisition, exploration and development of high-quality strategic mineral projects. The Company has compiled a portfolio of high-impact base-metal interests in Spain and Australia. Its primary focus is the development of its advanced zinc projects in Spain. The Company’s name is derived from the Variscan orogeny, which was a geologic mountain building event caused by Late Paleozoic continental collision between Euramerica (Laurussia) and Gondwana to form the supercontinent of Pangea.
To learn more, please visit: www.variscan.com.au
Contact details:
For further information, please contact:
Variscan Mines Limited (ASX:VAR)
Stewart Dickson, Managing Director & CEO
E: [email protected] | T: +44 (0) 7799 694195
Media & Investor Enquiries
Jane Morgan Management
Chloe Hayes / Jane Morgan
E: [email protected] / [email protected]
P: +61 (0) 458 619 317 / +61 (0) 405 555 618
