Variscan Mines (ASX:VAR) has increased its landholding at the Novales-Udias Project to 111.1km2 in Spain after being awarded two new licences.
The company’s new licences, Ana Isabel and Hipólita, were awarded by the Government of Cantabria in northern Spain. They are valid for three years, with the option to be extended for an additional three years subject to compliance requirements.
CEO Stewart Dickson says the company seeks to develop the exploration upside and ensure significant scale.
“Our explorer-producer strategy is aiming to deliver a staged approach that facilitates earlier cash flow from production operations at San Jose and Udias to reduce risk and still achieve attractive financial returns whilst sustainably funding the development of the overall project,” Dickson says.
“These new licences add to the long-term opportunity by increasing the scale in this proven, high-grade zinc district.”
Variscan intends to receive geotechnical testwork results for the project’s Scoping Study, as well as metallurgical testwork results.
Once received, further assay results from underground drilling at the Udias Mine will be received, followed by the mine restart Scoping Study.
The Ana Isabel licence sits immediately adjacent to existing tenements held by Variscan, which offers advanced exploration and development potential. Meanwhile, the Hipólita licence covers part of the former producing Reocin Mine and its extensions.
Variscan says formal ratification of the licences will occur following the review of certain supplementary information to be supplied by the company. This information includes annual work plans to the satisfaction of the Cantabria government.
The Novales-Udias Project, covering 68.3km2, is located in the Basque-Cantabrian Basin which hosts five mineralised districts of which the Santander district hosts the Reocin Mine and Novales-Udias.
Variscan Mines is a mineral explorer which has a portfolio of projects prospective for primarily base metals in Spain, Chile, and Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Variscan Mines
