Variscan Mines Limited ('Variscan' or the 'Company' or the 'Group') (ASX:VAR) is pleased to announce new infill geochemical soil sampling results conducted on prospects within the Buenahora licence area of the Novales-Udias Project in Cantabria, northern Spain.

A total of 379 samples were analysed from four separate prospects, all indicating the surficial extent of in-situ high-grade stratiform mineralisation.

Stewart Dickson, MD & CEO of Variscan Mines, commented: 'Once again, Variscan have delivered another set of high-grade results through our step-wise approach to exploration at the Novales-Udias project. The project has consistently demonstrated its quality and evidence of high-grade potential over substantially sized areas. It is clear that the southwest of the Buenahora licence is a very high priority area and a must for future drilling'.

Key Findings

379 new soil samples, covering four prospective areas; Geochemical Zn anomaly 1.35km length x 0.65km width (+0.2% Zn); Sinforosa and Magdelena encompassed within single anomalous zone (+0.5% Zn); Peak soil result of 16.33% Zn; 30% of soil samples + 1% Zn; 18% of soil samples +2% Zn; Mean soil sample grade of 1.74% Zn; Increased definition of soil anomalies;and Southwest of the Buenahora licence is a very high priority area for future drilling.

Work Programme

The soil sampling programme conducted by Variscan has supplemented historical soil geochemistry from AZSA (1980s) and delineated anomalies surrounding prospects in the south west of the Buenahora exploration permit that have been tested previously with rock grab (refer ASX Announcement 19 December 2019) and rock chip sampling (refer ASX Announcement 28 July 2020). The area covered by these new soil samples extends 1.65km in length by 0.7km width and includes a total of 379 samples. The sample spread encompasses four separate prospects, including Pozo Plomo, Jusfreno, Sinforosa and Magdalena that has been previously demonstrated as highly prospective for zinc and lead.

Soil Geochemistry Sampling

Soil samples were taken in a clustered pattern and the sample spacing is varied, between 20m and 70m, with an average of 45m. Samples were collected below the subsoil horizon where possible and 200g to 300g were taken at each point and analysed with a handheld XRF tool (Vanta). QA/QC was carried out on 10% of the samples which were sent to ALS laboratory in Sevilla for analysis. Reliability was confirmed for the handheld XRF results; however, a discrepancy in correlation was observed as a bias arose between the handheld XRF and ALS results, i.e. results from the handheld XRF were consistently lower than those analysed by ALS. This discrepancy has been accounted for, and all data quoted in this press release have zinc results from the handheld XRF normalised to align with the ALS laboratory results, which are considered more accurate at higher grades.

Some samples were collected adjacent to historic workings and in a small number of cases, on top of historic waste dumps, this may account for a portion of the higher-grade soil samples above 5% Zn.

Pozo Plomo

The Pozo Plomo prospect has anomalous soil sample results spanning an area 0.2km by 0.17km (+2% Zn) within the Reocin formation, this prospect appears small at surface but has significant historic workings. Peak values at this prospect from soils samples include a sample with 13.87% Zn and one with 5.9% Zn only 40m apart. Two historical drillholes located situated in close proximity to the prospect (H_Bue_Ju003 2.75m @ 19.50% Zn and H_Bue_Ju005 0.95m @ 5.93% Zn) provide evidence of Zn and Pb mineralisation at depth, and therefore further exploration potential. The drillhole H_Bue_Ju003 lies outside the +2% Zn soil geochemistry contours, indicative that mineralisation is present below surface with lower grade soil anomalies at surface (between 0.05 and 0.18% Zn for H_Bue_Ju003).

Jusfreno

The Jusfreno soil anomaly is similar in extent to Pozo Plomo (0.2km by 0.12km) with greater than 0.2% Zn. This prospect has been sampled previously with four rock chips samples (refer ASX Announcement 28 July 2020) which range between 5.9% Zn to 30.1% Zn and correlate well with the soil geochemistry analysis. Peak soil values reach up to 4.9% Zn and are indicative of intense surface expression of the stratiform MVT style (Mississippi Valley Type) mineralisation.

Magdalena and Sinforosa

Both the Magdalena and Sinforosa prospects have been mined historically with minor workings and have returned some very high-grade rock chip results (refer ASX Announcement 28 July 2020) including one value of 42.5% Zn and 1.5% Pb (CBRC0068). The soil geochemistry campaign in this area has delineated an extensive anomaly spanning between west of Jusfreno, Magdalena and Sinforosa with a 1.35km length and width of 0.65km. This large anomaly links broadly with historical (AZSA) soil sampling at Esmeralda, Motilos and Pepita, which combined spans 2.5km in length by 1km in width to provide an encouragingly sized target for additional exploration. The highest-grade samples above 2% Zn are concentrated at the base of the Reocin formation and covers an area of 0.5km by 0.28km, these values are considered very high for soil samples and this zone presents a very promising area for drill target generation to confirm the extent of mineralisation at depth.

Next Steps

The Company is progressing its work-plan for H2 2020 (refer ASX Announcement 02 June 2020) to execute the 2-fold opportunity that the Novales-Udias project presents:

Seek near term zinc production opportunities at the San Jose-Novales Mine

Strategy to define a regionally significant mineral resource over the Buenahora licence akin to the former producing and proximal Reocin Mine

Contact:

Tel: +61 8 9316 9100

Email: info@variscan.com.au

Notes

Variscan Mines Limited (ASX:VAR) is a growth oriented, natural resources company focused on the acquisition, exploration and development of high quality strategic mineral projects. The Company has compiled a portfolio of high-impact base-metal interests in Spain, Chile and Australia. The Company's name is derived from the Variscan orogeny which was a geologic mountain building event caused by Late Paleozoic continental collision between Euramerica (Laurussia) and Gondwana to form the supercontinent of Pangea.

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