Major Breakthrough: Variscan Attained Government Approval to Conduct Underground Drilling at San Jose Mine

  • Sep 17, 2020 AEST
  • Team Kalkine
Major Breakthrough: Variscan Attained Government Approval to Conduct Underground Drilling at San Jose Mine

Summary

  • Variscan has received Government of Cantabria’s approval to carry out underground drilling at the San Jose-Novales mine.
  • The Company has planned to undertake a high-impact drilling programme at the San Jose mine, which carries considerable exploration potential.
  • Variscan has successfully submitted a Plan de Labores or a modified work program with the Mines department in Cantabria’s Santander region.
  • Variscan is in the midst of finalising the selection of local contractors to initiate the drilling campaign.

Australia-headquartered natural resources company, Variscan Mines Limited (ASX:VAR) has recently attained a significant milestone, with the receipt of Government of Cantabria’s approval to carry out underground drilling at the underground mine - San Jose-Novales.

Delighted over the receipt of government’s approval, Variscan's Managing Director & CEO, Mr Stewart Dickson, commented:

Data Source: VAR ASX Update

Glance Through Variscan Mines and Project Portfolio

Variscan is a growth-oriented company engaged in the acquisition, exploration and development of high-grade strategic mineral projects. The Company focus is on accelerating two advanced zinc projects in Spain, the Novales-Udias Project and the Guajaraz Project, acquired in July 2019.

The Novales-Udias Project is a strategically located high-grade zinc project in northern Spain, at which the Company has planned a series of exploration works for its development. Moreover, the Novales area is one of the several underground workings situated on the 7km Novales Trend, which comprises the Novales-San Jose, Novales-Andrea and Novales-Biesces areas.

The San Jose mine is open at depth with positive indications of dolomite and a typical host rock for zinc sulphide mineralisation. Besides, the mine remains untested and holds considerable exploration potential, with mineralisation still visible in target areas.

Upcoming Drilling Programme at San Jose-Novales Mine

Variscan has planned to undertake a high-impact drilling programme at the San Jose-Novales underground mine, utilising historic drilling dataset collected of 332 underground drill-hole collars, for over 25,600m.

Towards this end, Variscan has already received Government of Cantabria’s approval to conduct underground drilling at the mine.

Besides, the Company has successfully submitted a Plan de Labores or a modified work program with the Mines department, located in Cantabria’s Santander region in northern Spain. The submission of the work programme comprises drilling targets proposed by the Company. This is needed in line with the mining licence granted over the mine and its adjoining tenements.

Importantly, Variscan has also tendered the drilling programme and is in the midst of finalising the selection of local contractors to initiate the drilling campaign. The Company notified that preparatory logistics and administration are also well advanced to support the programme and ensure sooner commencement of the drilling work.

Way Ahead

Variscan is progressing with the implementation of the two-fold opportunity presented by the Novales-Udias project, which comprises:

  • Seeking early-stage zinc production opportunities at the San Jose-Novales Mine.
  • Strategy to define a regional resource of significant scale potential over the Buenahora licence, similar to the former producing and proximal Reocín Mine.

To deliver on these strategic goals, Variscan has planned some near-term actions at San Jose - Novales Mine and Udias – Buenahora Exploration Tenement, as summarised in the below figure:

Data Source: VAR ASX Update

Variscan is continuing to develop social, environmental and governance initiatives in order to support its near-term actions at the Novales-Udias project.

With the receipt of government approval and submission of the modified work program, Variscan seems well-placed to embark on its high-impact drilling programme at the San Jose mine as soon as the drilling contractor is finalised.  

Stock Performance: Variscan share price has zoomed up by over 105 per cent on a YTD basis. The stock traded at $0.035 mid-day on 17 September 2020.  

 

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