Variscan Mines Initiates Drilling at Udias Mine for Zinc Exploration
VAR (VAR) Share Update November 2024 Wednesday 13th
Variscan Mines Begins Drilling at Udias Mine, Unlocking Untapped Zinc Potential
Variscan Mines Limited (ASX:VAR) has announced the commencement of underground drilling at the Udias Mine in northern Spain, marking a significant step in expanding its zinc resource base.
Instant Summary:
- Drilling commenced at previously untested Udias Mine.
- Potential to expand high-grade zinc-lead mineralization beyond current estimates.
- Udias Mine linked to San Jose Mine, forming part of a 12km mineralized trend.
- New Estela exploration license facilitates access and drilling.
Drilling Commences at Udias Mine
Variscan Mines Limited has started underground drilling at the Udias Mine, part of the Novales-Udias Project in Cantabria, northern Spain. This marks the first time the company is drill-testing this site, which has been largely unexplored, especially in its southern section.
The Udias Mine is strategically connected to the San Jose Mine along a 12km mineralized trend, offering substantial opportunities for resource expansion. Historical data from face sampling and drilling have indicated high-grade zinc-lead mineralization, suggesting significant potential outside the current Mineral Resource Estimate footprint.
Strategic Importance and Exploration Potential
The Udias Mine complex is larger than the San Jose Mine and remains underexplored. The recent acquisition of the Estela exploration license has enabled Variscan to begin fieldwork, including underground access, to test high-priority drill targets.
Variscan's geology team has confirmed extensive mineralization along the Novales-Udias Trend, with the potential for a positive update to the company's mineral resource inventory upon completion of the drilling program.
High-Grade Zinc Opportunities
Recent historical sampling at Udias returned impressive zinc grades, with some samples showing over 40% zinc content. These results, combined with historical drilling data from the San Jose Mine, outline a promising extension of mineralization along the trend.
The initiation of drilling at Udias Mine is a pivotal development for Variscan Mines, potentially leading to significant resource upgrades. This could positively impact the company's stock as investors anticipate increased resource estimates and future production potential. The strategic location and high-grade mineralization suggest strong future prospects for the company in the European zinc market.
Investor Reaction:
Analysts are likely to view this development positively, given the high-grade nature of the mineralization and the potential for resource expansion. The market may react favorably as drilling progresses and results are announced.
Conclusion:
Investors should keep an eye on Variscan Mines' updates as drilling progresses at Udias. The potential for substantial resource additions makes this an exciting time for the company and its stakeholders. With further announcements expected, Variscan is positioning itself as a key player in the European zinc market.