Variscan Mines (ASX:VAR) has a new joint venture partner at the Couflens exploration licence in France due to the acquisition of Ariege Tungstene SAS by Apollo Minerals (ASX:AON).
Through Ariege, Apollo will earn an 80% interest in the joint venture, with Variscan free-carried at 20% until the completion of a definitive feasibility study or the expenditure of €25 million.
Couflens covers the Salau mine, formerly one of the world’s highest grade tungsten mines with average historical production grades of 1.5% tungsten trioxide.
Salau has very good potential to be brought back into production, with initial work aimed at generating a 2012 JORC resource as quickly as possible.
Variscan will also conduct a $1.4 million capital raising to fund exploration activities on other assets.
Greg Jones, managing director, commented: “We are excited to be joined by Apollo in the exploration and possible development of this high grade tungsten-copper-gold project.”
Capital raising
To help fund its current drilling program at the St Pierre Gold Project in Brittany and other exploration activities, Variscan will raise an additional $1.4 million.
Variscan has already secured $0.52 million through a share placement to sophisticated investors priced at $0.018.
The remaining $0.88 million will be raised through the exercise of options by company directors.
Couflens licence
The Couflens licence covers an area of 42 square kilometres around the historic 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 circa 1.5% tungsten trioxide.
The mine is reported to have produced 0.93 million tonnes of ore to yield circa 11,500 tonnes of tungsten trioxide in concentrate.
Production grades of up to 2.48% tungsten trioxide were recorded in the latter years of mining
Variscan considers that Salau has very good potential to be brought back into production within a short time frame.
Prior to mine closure, drilling below the existing underground development confirmed the continuation of the mineralised system and allowed the generation of a non-JORC resource estimate.
In addition, a number of other tungsten-copper-gold prospects have been identified within and adjacent to the mine.