Variscan Mines Ltd. has revealed a blueprint to revive the historic San José mine in northern Spain to production, with a new study confirming the project’s robust economics as a high-margin starter operation.
The Mine ReStart Study outlines an 11-year mine life for the former producing asset, leveraging existing underground development to significantly undercut the costs typically associated with new mining ventures.
By utilising roughly 1.6 kilometre of existing mine infrastructure, Variscan expects to slash pre-production capital requirements by approximately 50 per cent. This brownfield advantage not only reduces the financial burden but also accelerates the timeline to first concentrate, which is now targeted for 2028.
Variscan CEO Stewart Dickson said the mine restart study is a pivotal event for the company.
“It illustrates the viability of recommencing mining operations at this former operational asset in a proven zinc district.
“The study outlines a compelling low-capital-cost opportunity for Variscan to transition to a zinc producer.”
The study proposes an underground mining operation coupled with a modular 175ktpa processing plant located on-site. Over the initial 11-year period, the mine is expected to produce 82,600 tonnes of zinc and 9,600 tonnes of lead.
The strategy prioritises environmental and regulatory efficiency. By using historical mining experiences and existing land-use approvals, Variscan aims to make the restart more permittable.
Once processed, concentrates will be trucked via the regional dual-carriageway to the San Juan de Neiva zinc smelter, located just 175 kilometres away.
The San José mine sits within the wider Novales-Udias Project, a region that previously hosted the world-class Reocin mine.
Variscan views this restart as a springboard to unlock the broader mineral-rich area, including the adjoining Udias mine.
To fund the development, the company is pivoting toward non-dilutive financing options, including debt, royalties, and commodity off-take structures. Exclusive marketing manager Square Resources has been appointed to begin outreach for zinc and lead concentrate off-take agreements.
Variscan is now advancing toward a final investment decision (FID) with ongoing exploration, notably underground drilling will continue concurrent to the workstreams at the San José mine.