Variscan Mines Limited (ASX:VAR) shares jumped as much as 211% after assay results from underground drilling at San Jose Mine, part of the Novales-Udias Project in Spain, revealed new zinc-rich mineralised lenses.
The lenses are below areas of known mining activity in two separate north-south trends of the Central Zone, with multiple horizons identified and mineralisation occurring as a series of vertically stacked, flat-lying lenses.
This is consistent with the generally stratiform-stratabound character of sulphide ore bodies in MVT lead-zinc districts.
Visible high-grade zinc
A total of 73 drill holes for 2,087 metres have been drilled during this campaign to date, with drilling now complete in the Central Zone and South West Zone.
Assays are pending, however, the Southward extension of the La Caseta Trend has been drill-tested with multiple reports of visible high-grade zinc mineralisation from core logging.
Shares have been up 11.5 cents, a new high of more than three years, with more than 149 million shares changing hands.
“Potential to discover additional lenses”
Variscan managing director and CEO Stewart Dickson said: “The discovery of new high-grade mineralised lenses below the main gallery is a major development for Variscan.
“It suggests significant potential for discovering additional lenses throughout the San Jose Mine as the remainder of the mine has had barely any drilling to test for lower-lying lenses.
“In aggregate, that could provide considerable scale and tonnage potential.
“Additionally, it reinforces the conceptual model of San Jose as a multi-layered orebody, consisting of multiple vertically stacked, sub-horizontal high-grade mineralised lenses of variable thickness and geometry, separated by intervals of dolostone.
“This is typical of a classical MVT style deposit and similar to the nearby, world-class Reocin Mine; this further illustrates the quality of this deposit.”
Plan view of selected mineralised intersections in the La Caseta and 168-177 Trends
Exploration outlook
There is potential for high-grade mineralisation extending below the former producing mine, as the majority of the mine has not been drill-tested at depth - providing strong scale opportunity.
The zinc-dominant mineralisation is strongly structurally controlled by a system of steeply-dipping north-south and east-west oriented feeder faults.
It occurs as pervasive replacement of favourable shallow-dipping carbonate horizons that were both chemically reactive and permeable to the mineral-bearing fluids, as well as open-space filling of paleo-karstic cavities, breccias and fractures, and as disseminated sulphides.
This is consistent with the nearby (~9 kilometres) Reocin Mine which is the largest known strata-bound carbonate-hosted zinc-lead deposit in Spain and one of the world’s richest MVT deposits.
Next steps
Dickson said: “We will be following up these excellent drill results with further assays from drilling over the southward extent of the lower lens below the La Caseta Trend promptly.”
The company’s immediate focus is progressing with the following key activities:
- Receiving and interpreting assay results from drilling at the Central Zone of the San Jose Mine;
- Submitting assay results from drilling at the South West Zone of the San Jose Mine;
- Mapping and sampling of surface drill targets over the Buenahora license area;
- Surface drilling permitting application pending;
- Surface drilling in Q2/Q3 2021; and
- Mapping and sampling of targets over the Guajaraz Project in Castilla La Mancha.