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Variscan Mines (ASX:VAR) shares soar on San Jose drill results

ASX News, Materials
ASX:VAR      MCAP $5.927M
25 August 2022 11:57 (AEDT)

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Variscan Mines (VAR) has reported additional results from its phase two underground diamond drilling program at the San Jose mine in northern Spain.

The drilling program covered 2278 metres and has reportedly achieved its main objective of expanding and infilling zinc and lead mineralisation at the La Caseta trend within the Central zone of the mine.

The latest results include 33 metres at 4.1 per cent zinc and 0.1 per cent lead, 12 metres at 9.8 per cent zinc and 0.7 per cent lead, 9.7 metres at 9.1 per cent zinc and 0.9 per cent lead, and 1.1 metres at 20 per cent zinc and 0.3 per cent lead.

Variscan said these results have linked new “richly mineralised” intersections in-between known areas of workings, indicating continuity within and beyond the La Caseta trend.

Managing Director and CEO Stewart Dickinson said the high-grade results added to the already-impressive body of evidence and data confirming the project hosted significant zinc-lead mineralisation.

“The success of the drilling at San Jose has now allowed us to focus on drill testing new regional target prospects in the Buenahora Exploration Licence, which has already commenced,” he said.

The work aims to outline the value in the overall Novales-Udias project, as the San Jose mine covers just 15 per cent of the nine-kilometre-long Novales mineralised trend.

Variscan plans to conduct further drilling at San Jose throughout the remainder of the year as it moves to define a mineral resource estimate. The company will also complete a concept study to identify the potential to restart small-scale mining at San Jose.

Shares in Variscan Mines have soared 53.13 per cent on the back of today’s news to trade at 5 cents as of 11:55 am AEST.

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