High-grade hits support Variscan’s resource model for San Jose. Pic via Getty Images
Mining
Special Report: Infill underground drilling has validated Variscan Mines’ resource model for its San Jose mine in Spain after returning high-grade hits of up at 14.5m @ 8.93% zinc and 0.5% lead.
The San Jose resource of 1.1Mt grading 9% zinc and 1.2% lead was unveiled in late November 2023 and represents a key step in the company’s goal of restarting the mine, which closed in 1999.
Since then, ongoing drilling by Variscan Mines (ASX:VAR) has confirmed there’s more zinc to be found and mined at San Jose, with the company extending mineralisation along strike to the south-west, beyond the immediate workings at San Jose and across into the wider 9km Novales-Udias Trend.
Most importantly, diamond drilling has indicated a linkage over 1.4km between the San Jose mine and the far more extensive Udias workings.
VAR also recently carried out a geological assessment and targeting study led by world-renowned expert Dr Brett Davis, highlighting priority exploration targets notably where the D1 and D2 structures intersect outside the existing resource model.
These zones of increased permeability favour the deposition of zinc-lead mineralisation and are now considered a high priority target for in-mine drilling.
Underground drilling targeting areas of known zinc-lead structures that were previously underexplored or underexploited have now returned high-grade intercepts predominantly associated with the La Caseta Trend within the mine’s Central Zone.
This has also confirmed the potential for additional mineralised lenses below the existing resource model and for further extensions.
Drilling is currently testing the new structural targets identified by Davis-led study.
“The new assay results from drillholes continue to display significant zinc grades over substantial thicknesses as we continue to define and develop one of the highest-grade, development stage zinc deposits in Europe,” VAR managing director Stewart Dickson said.
“The board have decided that the underground drilling campaign will continue until mid-2024. Using our own portable drill rig and staff enables us to conduct this program efficiently, cost effectively and with a high degree of flexibility.
“This is in contrast to the wider junior mining sector which is signalling reduced drilling activity. In short, we are drilling when others aren’t or can’t.
VAR is continuing its upscaled underground drilling program well into 2024.
Along with a planned surface drilling campaign in Q2 2024, these campaigns are aimed at delivering a resource upgrade later this year.
This includes upgrading existing indicated and inferred resources to higher confidence levels and increasing the overall tonnage of the resource.
This article was developed in collaboration with Variscan Mines, 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.
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