Variscan Mines (ASX:VAR) strengthens Novales-Udías Project with historic drilling data

Variscan Mines Limited (ASX:VAR) has enhanced its exploration and development potential in northern Spain with the acquisition of 146 historic drillhole records totalling 52,034 metres across newly granted licences.

The results include numerous high-grade zinc and lead intercepts, providing the company with significant savings in both time and capital while building a foundation for district-scale growth opportunities.

To discuss the importance of this development, Variscan’s Managing Director and CEO, Stewart Dickson, responded to questions commonly asked by investors.

What is the significance of the newly acquired historic drillhole database?

The acquisition of 146 historic drillholes is a major step forward, as it secures data that would otherwise cost more than A$12.9 million and take several years to replicate.

These records, sourced from the School of Mines and Energy Engineering at the University of Cantabria, add a substantial volume of geological and assay information that has been incorporated into the company’s database, which now contains 1,221 drillholes for 138,570 metres.

“The acquisition of this historical drilling data is very valuable. It represents a significant saving in both time and cost. The replacement value of this drilling is estimated to be A$12.9 million.”

How do the results from the Hipólita licence fit into the company’s growth strategy?

The Hipólita licence is especially important as 90 of the newly acquired drillholes are located there, representing nearly 40,000 metres of drilling.

The assays include some of the most notable intercepts such as 24.0 metres at 12.3% zinc, 20.9 metres at 14.0% zinc, 17.6 metres at 14.7% zinc, 9.5 metres at 24.7% zinc and 2.7 metres at 36.3% zinc.

These highlight the potential for unmined extensions of mineralisation near the footprint of the former Reocín Mine, which was one of the largest Mississippi Valley Type zinc-lead deposits in the world.

“More importantly, the drilling emphasises the high-grade quality and district-scale potential of the Novales-Udías Project.”

How do current zinc market conditions enhance the value of this project?

When the Reocín Mine ceased operations in 2003, zinc prices averaged US$791 per tonne, and in August 2025, zinc traded at an average of US$2,789 per tonne, which represents a 3.5-fold increase.

This uplift in pricing creates more favourable economic conditions for developing high-grade projects such as Novales-Udías, particularly given the proximity to infrastructure including the Glencore-owned San Juan de Nieva smelter, located approximately 171 kilometres away.

What is the broader district-scale opportunity across the Novales-Udías Project?

The Cantabria region is a well-recognised zinc-lead district, and Mississippi Valley Type deposits typically occur in clusters that can range from a handful to several hundred deposits.

The integration of the historic drilling results shows that mineralisation extends across the Santillana syncline, stepping from the San Jose Mine towards the Reocín Mine.

This has expanded the project area to 111 square kilometres, which includes several granted mining tenements and presents a strong platform for district-scale exploration and development.

“As the drilling reported is outside of the current Mineral Resource Estimate, there is genuine potential to add significant tonnage and scale to this high-quality project.”

What are the next steps for Variscan to advance the project?

The company has a clear forward plan that includes further assay results from underground drilling at the Udías Mine, alongside metallurgical and geotechnical test work, both of which will be incorporated into the San Jose Mine Re-Start Scoping Study.

The publication of this study will be a key milestone, outlining the framework for restarting mining operations.

In parallel, exploration activities will continue across the Hipólita, Esperanza and Ana Isabel licences, with geological mapping, geochemical sampling and targeted drilling programs.

A geophysical orientation study is also planned for Hipólita, directly over the footprint of the Reocín deposit, to help refine drill targets.

“It is a compelling de-risked, brownfield opportunity with a realistic prospect of near-term production building in scale over the mid-long term.”

Positioning for growth

The integration of historic drilling data has provided Variscan Mines with a substantial advantage, enabling the company to move forward with exploration and development supported by a dataset that would otherwise take years and millions of dollars to generate.

With high-grade results across multiple licences, a proven zinc-lead district, and strong zinc market conditions, the Novales-Udías Project is positioned to deliver growth.

The San Jose Mine remains the immediate focus, with the forthcoming Scoping Study expected to set the stage for production, while Hipólita, Esperanza and Ana Isabel represent important opportunities for longer-term expansion.

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