Variscan Mines Limited (ASX: VAR) has reported exceptional high-grade zinc drill results from its San Jose Mine, confirming a probable feeder zone at the La Caseta area within the mine’s central zone. The company’s latest drilling campaign, conducted in late 2024, has returned the highest grade-thickness intercept ever recorded by Variscan at the Novales-Udias project.
The standout result came from drill hole NDDT059, which intersected 15.3m @ 17.42% Zn, 4.40% Pb. Other notable assays include:
- NDDT058: 14.30m @ 8.09% Zn, 1.28% Pb
- NDDT060: 15.25m @ 6.10% Zn, 0.46% Pb
These results contribute to 5 of the 20 best-ever drill holes recorded at the Novales-Udias project.
Feeder Zone Identified at La Caseta
Variscan’s geological mapping has identified a north-south oriented linear zone of abundant high-grade sulphide mineralisation, which is believed to be a principal feeder system for the San Jose Mine. Drill results indicate that this zone has channelled metal-bearing hydrothermal fluids upward, forming a steeply dipping fault zone rich in iron sulphides, marcasite, and galena. The presence of elevated trace elements, such as 150ppm nickel, suggests deposition from high-temperature ore fluids.
Next Steps: Expansion of Drilling and MRE Update
The recent drill results are located outside the existing Mineral Resource Estimate (MRE) and are expected to contribute to an updated MRE later in 2025. The northwest of La Caseta remains virtually undrilled, making it a priority exploration target for follow-up drilling. Additional drilling capacity will be required to fully test the extent of mineralisation in this area.
Mine Re-Start Study and Ongoing Work
Variscan continues to advance the Mine Re-Start Study, supporting its Explorer-Producer strategy. Key milestones expected in the coming months include:
- Geotechnical and metallurgical test work results for the Mine Re-Start Study.
- Further underground drilling at the Udias Mine, continuing throughout H1 2025.
- Geophysical survey results from the Guajaraz project.
Variscan’s Managing Director and CEO, Stewart Dickson, emphasised the importance of these latest discoveries:
“These drilling results provide strong confidence in the potential restart of mining at San Jose. The identification of a feeder zone at La Caseta is a major step forward in understanding the deposit and unlocking further exploration upside. The San Jose Mine remains a high-grade, development-stage zinc project, and we look forward to reporting further results as we progress.”
Strategic Location and Historical Significance
The Novales-Udias project is strategically located near a zinc smelter and includes several granted mining tenements. It is also 9km from the world-class Reocín Mine, one of the richest Mississippi Valley Type (MVT) deposits globally, highlighting the high-grade potential of the region.
