Variscan Mines Limited (ASX: VAR) is pleased to announce that the Government of Cantabria has approved its Restoration Plan covering the granted Mining Licences at the San Jose and Udias Mines, part of the Novales-Udias Zinc Project in northern Spain.
This approval marks a critical regulatory milestone, providing clear and unambiguous permitting approval to proceed towards exploitation and mine re-start activities at one of Europe’s highest-grade development-stage zinc deposits.
Key Highlights
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Restoration Plan approved by the Government of Cantabria, covering waste management, protection and rehabilitation of affected areas.
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Mining Licences already granted until 2035, with potential extension for a further 30 years.
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Approval includes authorisation for an extensive surface drilling program of 69 diamond drillholes (~13,800m).
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Decision significantly de-risks the Novales-Udias Project as Variscan executes its Explorer–Producer Mine Restart Strategy.
CEO Comment
Stewart Dickson, Managing Director & CEO of Variscan Mines, said:
“The approval of the Restoration Plan over the existing Mining Licences is a major milestone for the Novales-Udias Zinc Project’s advancement.
With granted Mining Licences in hand, together with the approved Restoration Plan, Variscan has an extremely de-risked project. We have clear and unambiguous permitting approval to proceed to exploitation and recommencing mine production. This is a very important and value accretive development milestone at one of the highest-grade, development stage zinc deposits in Europe, which is continuing to make good progress towards re-starting production.
Our next key deliverable is publication of the Mine ReStart (Scoping Study) which will deliver a realistic plan for early cash-flow from small scale production, re-positioning Variscan as cash-flow generating zinc producer, to sustainably fund ramp-up production growth and exploit exploration upside as well as the overall development of our project portfolio.
This permit has been a substantial piece of work, achieved as a collaborative outcome with the Government of Cantabria. We have a highly valued, constructive working relationship with the authorities of the Government of Cantabria. I am grateful for their trust as well as that of the local communities. In our experience, Cantabria is an excellent operating jurisdiction and the Government are demonstrably enacting their publicly stated commitment to support the re-start of zinc mining in the region”.
De-risked Pathway to Mine Restart
The Restoration Plan approval strengthens the project’s permitting framework and underpins the Company’s Mine Restart Scoping Study, which will outline a pathway to early cash flow from small-scale production and sustainable expansion.
The approval also authorises a 13,800m drilling campaign designed to expand the existing Mineral Resource Estimate (3.4Mt @ 7.6% Zn, 0.9% Pb, JORC 2024) along the Novales Trend, targeting step-outs from San Jose and connecting mineralisation with historical workings at Brincia and Emilia.
With local community and government support, granted licences through 2035 (extendable to 2065), and proximity to Glencore’s San Juan de Nieva zinc smelter, Variscan is strategically positioned to become one of Europe’s next zinc producers.
About us:
The Novales-Udias Project is located in the Basque-Cantabrian Basin, some 30km southwest from the regional capital, Santander. The project is centred around the former producing San Jose underground mine with a large surrounding area of exploration opportunities which include a number of satellite underground and surface workings and areas of zinc anomalism identified from recent and historic geochemical surveys. Variscan has delineated a significant 9km mineralised trend and a sub-parallel 3km trend from contemporary and historical data across both the Buenahora exploration and Novales mining permits.
The San Jose Mine is nearby (~9km) to the world class Reocin Mine which is the largest known strata-bound carbonate-hosted Zn-Pb deposit in Spain and one of the world’s richest MVT deposits. Further, it is within trucking distance (~80km) from the San Juan de Nieva zinc smelter operated by Asturiana de Zinc (100% owned by Glencore). Significantly, the Novales-Udias Project includes a number of granted mining tenements.
Contact details:
Stewart Dickson – Managing Director & CEO
đ§ [email protected] | +44 (0) 7799 694195
Media & Investor Enquiries:
Chloe Hayes
đ§ [email protected]
