What's Happening?
Variscan Mines Limited has recommenced underground drilling at its Udías Mine in northern Spain, marking a significant step in its strategy to restart zinc production at the Novales–Udías Project. The renewed drilling program targets previously untested zones along existing underground development, aiming to link Udías mineralization to the current Mineral Resource Estimate (MRE) and extend toward the adjacent San José Mine. This initiative follows strong underground results reported in 2025 and is supported by 3D mine surveys, historical drilling, and recent Variscan data. The company is also nearing completion of the San José Mine Re-Start Study, which is about 95% complete and expected to be published soon. This study is part of Variscan's
'Explorer–Producer' strategy, designed to enable a low-capex restart capable of generating early cash flow while supporting scalable production growth.
Why It's Important?
The resumption of drilling at Udías and the near completion of the San José Mine Re-Start Study are crucial for Variscan Mines as they position the company to capitalize on favorable zinc market conditions. With zinc prices trading around $3,300 per ton and global refined inventories at historically low levels, Variscan is strategically poised to benefit from these market dynamics. The successful restart of zinc production could enhance Variscan's financial performance and market position, potentially leading to increased investor confidence and further exploration opportunities. Additionally, the project could contribute to the local economy by creating jobs and stimulating economic activity in the region.
What's Next?
Following the publication of the San José Mine Re-Start Study, Variscan plans to commence concentrate marketing discussions with its appointed exclusive marketing manager, Square Resources. The company is also nearing completion of its earn-in to the Midlands and Waterford zinc projects in Ireland, with due diligence completed and final transaction documents in agreed form. These developments suggest that Variscan is on track to become a significant player in the European zinc market, with the potential to expand its resource base and production capabilities further.
