Variscan Mines Limited announced that it has defined an initial JORC compliant Exploration Target of between 16.5Mt and 34Mt at grades ranging from 6.3% to 9.1% Zinc and 1.1 to 1.8% Lead at the Novales-Udias Project, located in Cantabria, northern Spain. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource for all target areas reported.

It is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code. The Exploration Target has been compiled by Wardell Armstrong International Limited (WAI), an independent, multidisciplinary consultancy that has provided the mining and minerals industry with specialist expertise for over 185 years around the world.

In order to establish grade ranges for zinc and lead that reflect the inherent complexity of the stratabound and structurally controlled MVT style mineralisation, the recent and historical underground drilling at the San Jose Mine was chosen as the most representative proxy for zinc and lead grades over the project area and have been ascertained with methods similar to those which would be used in determining a Mineral Resource Estimate. For comparative purposes, historical production data for the San Jose Mine (tonnage and grade) have been plotted against the grade range in the Exploration Target. The Run of Mine (RoM) grades for San Jose span from January 1970 to September 1988 and while the data does have some gaps and does not cover the entire period of production, it does indicate that the grade ranges defined in the Exploration Target are justifiable and supported by previous operational activity.