Variscan Mines Ltd (ASX:VAR) has received confirmation of the grant of its seventh exploration licence within France.
The Couflens licence (PER), located in the Pyrenees region, covers an area of 42 square kilometres, centred on the Salau tungsten mine.
Prior to its closure in 1986, Salau was one of the highest grade tungsten mines in the world, with an average recorded life of mine production grade of 1.5% WO3.
The company considers that Salau has strong potential to be brought back into production.
Joint venture
To fund exploration and initial underground development, Variscan has entered into a joint venture agreement with Ariege Tungsten SAS, where Ariege will earn into the Couflens tungsten-copper-gold project through the completion of a DFS or the expenditure of €25 million ($A36 million).
Variscan will maintain a free carried interest of 20% until this is achieved.
The initial exploration work plan for Salau includes:
- Acquisition and electronic conversion of available mine and exploration data;
- Initial access and, where necessary, rehabilitation of previously developed mine areas;
- Mapping and sampling of mineralisation;
- Generation of robust 3D model of the geology, ore zones and principal controls on mineralisation;
- Possible underground development in upper mine area to establish underground drill platforms
- Underground drilling to confirm resource blocks and extend mineralisation;
- Generation of a Mineral Resource to 2012 JORC reporting standards; and
- Commencement of an incline to provide access below the base of the mine and remaining resource and to allow more extensive drill testing of the down plunge position of the Veronique system and parallel structural positions.
Work will focus on defining sufficient high grade tungsten mineralisation to justify commencement of mine feasibility studies, as well as testing the gold potential within and adjacent Salau.
Site works including establishment of office facilities and safety audits of the accessible mine workings will commence shortly.