Shares in Variscan Mines Ltd (ASX: VAR) are on fire today as the market reacts to news of discoveries at the company's San Jose Mine. At the time of writing, the resource company's share price has rocketed 91.89%, trading for 7.1 cents.
The San Jose mine is located within Variscan's Spanish Novales-Udias Project. There, drilling has brought new zinc-rich mineralisation to light.
Let's take a closer look at the news driving the Variscan share price today.
Image source: Getty Images
Positive assay results
According to Variscan, the new discoveries include high-grade zinc and lead lenses at San Jose. Furthermore, assay results from central mineralisation include:
- 16.9 metres at 12.5% zinc and 2.0% lead.
- 15.6 metres at 3.2% zinc and 0.3% lead.
More drilling at a southward extent is now finished, with the results received so far showing visual zinc mineralisation in the majority of holes.
The results from a further 20 drillholes are expected to be received by Variscan shortly. Variscan stated it's also focused on mapping and sampling at its other Spainish project, Guajaraz.
Commentary from management
Variscan's managing director and CEO Stewart Dickson commented on the findings, saying:
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… 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…
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.
Variscan Mines share price snapshot
If the Variscan share prices' gains hold until close today, it will be its highest closing price since 2018.
Presently, the Variscan share price is up 163% year to date. It's also gained 295% since this time last year.
The resource company has a market capitalisation of around $7 million, with approximately 212 million shares outstanding.
