Variscan Mines Limited shares boom in discovery of multiple high-grade zinc lenses at San Jose mine


There is potential for high grade mineralization extending beneath the old producing mine, as the majority of the mine has not been tested by deep drilling, which would provide a large scale opportunity for the company.

Shares of Variscan Mines Limited (ASX: VAR) jumped 211% after assay results from underground drilling at the San Jose mine, part of Spain’s Novales-Udias project, revealed new mineralized lenses rich in zinc.

The lenses lie beneath areas of known mining activity in two distinct north-south directions of the central zone, with multiple horizons identified and mineralization occurring as a series of vertically stacked horizontal lenses.

This is consistent with the generally stratified-stratified character of sulphide orebodies in the lead-zinc districts of MVT.

High quality visible zinc

A total of 73 drill holes for 2,087 meters have been drilled during this campaign to date with drilling now complete in the central and southwest areas.

Analysis is pending, however, the southern extension of the La Caseta trend has been drill tested with several reports of visible high-grade zinc mineralization from core logging.

Shares rose 11.5 cents, a new record for more than three years, with more than 149 million shares changing hands.

“Potential for the discovery of additional lenses”

Variscan Managing Director and CEO Stewart Dickson said: “The discovery of new high grade mineralized lenses under the main drift is a major development for Variscan.

“This suggests significant potential for finding additional lenses throughout the San Jose mine, as the rest of the mine had virtually no drilling to test the lower lenses.

“Overall, this could provide considerable scale and tonnage potential.

“In addition, it reinforces the conceptual model of San Jose as a multi-layered deposit, composed of several high-grade mineralized lenses, stacked vertically and sub-horizontally, of varying thickness and geometry, separated by intervals of dolomite.

“This is typical of a classic MVT style deposit and similar to the neighboring world-class Reocin mine; this further illustrates the quality of this deposit.

Plan view of selected mineralized intersections in La Caseta and 168-177 trends

Exploration prospects

There is potential for high grade mineralization extending beneath the old producing mine, as the majority of the mine has not been tested by deep drilling, providing a large scale opportunity.

The zinc-dominant mineralization is strongly structurally controlled by a system of steeply dipping north-south and east-west feeder faults.

It occurs as a ubiquitous replacement of favorable, low-dip carbonate horizons that were both chemically reactive and permeable to mineralized fluids, as well as in the filling of open spaces of paleokarst cavities, breccias and fractures, and in the form of disseminated sulphides.

This is consistent with the nearby Reocin mine (approximately 9 kilometers), which is the largest known strata bound zinc-lead carbonate deposit in Spain and one of the richest MVT deposits in the world.

Next steps

Dickson said, “We will be following these excellent drill results with further drill assays on the southern extent of the lower lens under the La Caseta trend.”

The immediate objective of the company is progressing with the following key activities:

  • Receive and interpret the results of drilling analyzes in the central area of ​​the San Jose mine;
  • Submit assay results from drilling in the southwest area of ​​the San Jose mine;
  • Mapping and sampling of surface drilling targets in the Buenahora license area;
  • Surface drilling permit application pending;
  • Surface drilling in Q2 / Q3 2021; and
  • Mapping and sampling of targets on the Guajaraz project in Castilla La Mancha.


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