Variscan’s San Jose modelling highlights potential for further zinc growth

Variscan Mines (ASX:VAR) is another step closer towards defining a maiden JORC zinc resource for its San Jose mine in Spain after upgrading and expanding its database of historical holes.

The enhanced database of 983 drill holes totalling 88,155m has been used to construct a 3D model of mineralisation and mine development, which confirmed the presence of thick, high-grade, accessible sulphide zinc-mineralised lenses.

Analysis of the database has also highlighted in-mine and near-mine upside as well as prospective step-out zones for future exploration.

As an indicator of what might be present within the unmined areas stepping out from San Jose, Variscan highlighted some interesting historical diamond drilling results, including one of 43m grading 4.5% zinc including 6m at 9.6% zinc and another of 20m at 4.0% zinc including 3.2m at 9.6% zinc.

Recent surface diamond drilling about 1,200m northeast along strike from the Main Zone of the underground mine stopes has also returned results such as 22m at 8.16% zinc and 6m at 16.02% zinc, which are indicative of the San Jose mineralised system’s strike potential in this direction.

“Following our latest round of successful drilling results and recent fund raising, we’ve completed a comprehensive review and validation of our drill-hole database in preparation for mineral resource estimation and a mine restart concept study at the San Jose Mine,” Managing Director Stewart Dickson said.

“As a result of this work the quality of the database has improved significantly and highlights the in-mine and near-mine exploration upside.

“Underground targets are expected to be drill-tested as soon as practicable with step-out surface drilling to be conducted in H2 of this year.

“This infill drilling, off the back of recently reported successful step-out drilling, will address strategic spatial gaps which could yield further tonnage.”

He added that these results and activities will contribute to the delivery of a JORC resource for San Jose.

Upside potential

The modelling has produced prospective zones for future exploration and resource tonnage potential within the San Jose Mine.

These in-mine, underground targets will be drill-tested as soon as practicable.

Variscan adds that the high-grade assays from the recent step-out drilling led to a review of data around this unmined area that indicated very promising exploration targets.

It is now progressing approvals to undertake further surface drilling in and around the San Jose Mine to test promising exploration targets.

Plans are also afoot to carry out the Phase 3 underground infill and resource definition drilling, which will feed directly into the maiden JORC resource and a mine restart concept study.

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.