Variscan Mines (ASX:VAR) zinc discovery: Udias delivers a high-grade surprise

In a world increasingly focused on critical minerals, Variscan Mines (ASX:VAR) has emerged as a company to watch with its maiden underground drilling at the Udias Mine in Spain.

The results are not just promising—they’re exceptional.

Variscan Mines foray into the historic Udias workings, part of its Novales-Udias zinc project, has unearthed thick, high-grade zinc and lead intercepts, reinforcing the potential of the region’s mineralisation.

Highlights from the first five drill holes include:

• UDDT004: 20.1m @ 8.22% Zn, 1.72% Pb
• UDDT002: 16.5m @ 6.16% Zn, 0.87% Pb
• UDDT001: 7.8m @ 7.41% Zn, 0.68% Pb
• UDDT005: 11.4m @ 4.76% Zn, 0.24% Pb
• UDDT003: 11.0m @ 4.92% Zn, 0.04% Pb

For a mine that last operated in 1930 and was largely overlooked in favour of oxide mineralisation, these findings rewrite the geological script.

The new data suggests Udias may be a much larger mineralised system, with geological similarities to the adjacent San Jose Mine.

Variscan’s Managing Director and CEO Stewart Dickson put it plainly:

“Drilling at the Udias Mine for the first time has certainly yielded fantastic results with an outstanding set of thick, high-grade zinc intercepts.”

Unlocking a Forgotten Zinc Province

The Basque-Cantabrian Basin, home to the Novales-Udias Project, is no stranger to zinc production.

Just 9km away, the legendary Reocin Mine produced over 60 million tonnes at 8.7% Zn, making it one of the richest Mississippi Valley-Type (MVT) deposits globally.

With Udias showing similar geological characteristics, Variscan is positioning itself as a key player in the European zinc market.

The company has leveraged its underground access to conduct cost-effective, short-range drilling, targeting untested zones left behind by past operators.

The results suggest that previous mining efforts only scratched the surface. Importantly, the intercepts remain open along strike and at depth, leaving room for resource growth.

Strategy: Explorer to Producer

While many junior explorers struggle to bridge the gap to production, Variscan’s approach is refreshingly pragmatic.

The company’s “Explorer-Producer” strategy aims to re-establish mining at high-grade deposits with existing underground access and infrastructure.

The proximity to Glencore’s San Juan de Nieva smelter—just 80km away—further strengthens the project’s commercial viability.

For now, drilling at Udias will continue for the remainder of H1 2025, with additional surface and underground drilling in the pipeline.

A resource update is on the cards later this year.

“The Udias Mine complex is significantly larger than the San Jose Mine, and with this drilling occurring outside of the Mineral Resource Estimate, there is genuine potential to add significant tonnage and scale to this high-quality project,”  Dickson said.

A Zinc Revival on the Horizon?

Zinc’s role in galvanisation, batteries, and renewable infrastructure keeps demand strong, yet supply disruptions have left markets tight.

European zinc projects like Novales-Udias are increasingly valuable, offering security of supply at a time when the continent is looking to reduce its reliance on imports.

With thick, high-grade hits and a clear pathway to production, Variscan Mines may have just unlocked the next chapter in Spain’s zinc mining history.

Investors looking for exposure to a well-credentialed base metals play should keep an eye on what unfolds next.

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