Variscan Mines (ASX:VAR) has secured approval for the group’s restoration plan over mining licences within the Novales-Udias Zinc Project in Northern Spain.
A restoration plan is considered a key approval required for operating an exploitation mining licence, relating to the rehabilitation of the areas affected by mining activities and the management of the mining waste.
As a result of securing approval, the company is able to proceed to exploitation and resuming mining production.
The restoration plan, covering the San Jose and Udias mine areas, extends until it expires in 2035. An extension for a further 30 years is permissible. The scope of the plan has been expanded to include an extensive surface drilling program over the mining licence areas, comprising 69 holes for 13,800m.
Drilling is designed to test targets in the zinc-rich dolostone Reocin Formation which is known to host the ore bodies defined in and around the San Jose and Udias Mines.
CEO Stewart Dickson says with granted mining licences in hand, coupled with the restoration plan, the company has de-risked Novales-Udias.
“This is a very important and value accretive development milestone at one of the highest grade, development stage zinc deposits in Europe, which is continuing to make good progress towards restarting production,” Dickson says.
Variscan now aims to publish a Scoping Study which aims to deliver a realistic plan for early cashflow from small-scale production.
The Novales-Udias Project is an advanced-stage zinc-lead project located in Spain’s Basque-Cantabrian Basin.
Variscan Mines is focused on developing its assets to transition to a producing mining company.
Write to Aaliyah Rogan at Mining.com.au
Images: Variscan Mines
