Variscan’s belief that its San Jose mine still hosts significant zinc-lead mineralisation has been bolstered by further high-grade results of up to 20% zinc from underground drilling.

Importantly for the company, the latest set of assay results from the now completed – and highly successful – Phase 2 underground drilling program have continued to expand and infill zones of high-grade mineralisation in the La Caseta Trend within the mine’s Central Zone.

This work has also linked new richly mineralised intersections in between known areas of workings, which indicates continuity within and beyond the La Caseta Trend.

“This latest batch of high-grade drilling results adds to the already impressive body of evidence and data confirming this former producing asset hosts significant zinc-lead mineralisation,” managing director Stewart Dickson said.

He added that the successful drilling at San Jose allows Variscan Mines (ASX:VAR) to focus on drill testing new regional target prospects in the Buenahora Exploration Licence, which is now underway.

“This work is aimed at demonstrating the value embodied in the overall Novales-Udias Project, as the San Jose Mine covers just 15% of the entire strike length of the mineralised structure of the Novales Trend and the recently published JORC Exploration Target confirms the mid-large scale, high grade potential of the project,” he added.

“Further drilling at the San Jose Mine is anticipated as we proceed with mineral resource definition and a Mine Re-Start Concept Study to identify the potential economics and work-streams to support a re-start of initial, small-scale mining at San Jose.”

Late last month, the company estimated an exploration target of between 16.5Mt and 34Mt at grades of 6.3% to 9.1% zinc and 1.1% to 1.8% lead for the project.

Phase 2 drilling results

The most recent results from the Phase 2 drilling targeting the La Caseta Trend include 33m at 4.1% zinc and 0.1% lead (DDH NOVDD113), 12m at 9.8% zinc and 0.7% lead (DDH NOVDD108), and 1.1m at 20% zinc and 0.3% lead (DDH NOVDDT025).

Meanwhile, step-out drilling of the adjacent El Eucaliptal near-surface mine returned 2m at 4.1% zinc and 0.1% lead.

These and earlier results have led the company to conclude that the program has achieved its primary objective of expanding the footprint of zinc-lead mineralisation at the San Jose Mine and surrounding areas, which will strongly support evaluation of its resource potential.

Upcoming activity

Variscan expects to conduct future underground and surface drilling campaigns in the current and fourth quarters of this year with an underground rig already deployed to test lower-lying targets at the Pepita target in the Buenahora licence area.

Additionally, the second phase of the surface drilling campaign is scheduled to commence at the end of the month.




This article was developed in collaboration with Variscan Mines (ASX:VAR), a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.