Variscan Mines Limited (ASX: VAR) has recommenced underground drilling at its 100%-owned Udías Mine in northern Spain, marking an early 2026 operational milestone as the Company advances its strategy to restart zinc production at the Novales–Udías Project.
The renewed drilling program is targeting previously untested zones along existing underground development, with the aim of linking Udías mineralisation to the current Mineral Resource Estimate (MRE) and extending toward the adjacent San José Mine. Notably, all drilling completed at Udías to date lies outside the existing MRE, highlighting the potential to materially expand the known resource base.
Drilling follows a series of strong underground results reported in 2025 and is supported by the integration of 3D mine surveys, historical drilling, face sampling and recent Variscan drilling data. Mineralisation at Udías continues to demonstrate strong geological similarity to San José, reinforcing the interpretation that both mines form part of the same mineral system.
In parallel, Variscan confirmed that workstreams for the San José Mine Re-Start Study are approximately 95% complete, with publication expected in the coming weeks. The study underpins Variscan’s stated “Explorer–Producer” strategy and is designed as a pragmatic, low-capex restart capable of generating early cash flow while supporting scalable production growth and ongoing exploration.
Variscan Managing Director and CEO Stewart Dickson said the Company had “hit the ground running” in 2026.
“We are very pleased to have drilling underway again at Udías, where we are systematically stepping into new target zones outside the current resource. At the same time, we are finalising the San José Mine Re-Start Study, which is a key deliverable in repositioning Variscan as a cash-flow generating zinc producer.”
The update also comes amid a strengthening zinc market. Zinc prices are trading around US$3,300/t, with global refined inventories at historically low levels. Variscan expects to commence concentrate marketing discussions following publication of the Mine Re-Start Study, working with its appointed exclusive marketing manager, Square Resources.
In addition, the Company is nearing completion of its earn-in to the Midlands and Waterford zinc projects in Ireland, with due diligence completed and final transaction documents in agreed form.
With drilling continuing at Udías, the San José restart approaching completion, and favourable zinc market conditions, Variscan is positioning the Novales–Udías Project as one of Europe’s most advanced high-grade zinc restart opportunities.
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
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P: + 61 (0) 458619317/ +61 (0) 405 555 618