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EUROPE

Variscan takes first Spanish steps

ariscan Mines Ltd managing director Miguel Angel Revilla viewed mining as a There are also early-stage options. The
VStewart Dickson said shareholders key driver of the province’s economic re- last of the small-scale mines were aban-
should not be perturbed by the company’s growth. doned in 1997 without any regional-scale
return to Europe because Spain was a very “Southern Europe has never fully recov- exploration occurring. Dickson believes
different mining jurisdiction to France. ered from the GFC and youth unemploy- Variscan can build on earlier work using a
Variscan exited France in early 2018 ment is very high. There is a need for a modern approach.
after becoming frustrated by the permit- policy response in Cantabria, which is a “Most of these small-scale production
ting and approvals process in the country. particularly poor region, so it makes sense assets went to a maximum depth of 100m,
After a worldwide search for new projects, to use its mineral endowment to address there hasn’t been any detailed explora-
Dickson alighted just over the border, strik- issues of economic growth and unemploy- tion,” he said. “We are currently working
ing a deal to acquire the Novales-Udias ment.” with local partners to access the hard copy
and Guajaraz zinc projects in the historical data. We are talking to the
Cantabria region of northern Spain. local school of mines to digitise that
“We had a global mandate from data and once the deal is finalised
our shareholders but you need to be [a shareholder vote on the terms is
laser focused on opportunities and set for mid-November] we can begin
jurisdictions,” Dickson told Paydirt. planning a field programme.”
“We looked carefully at the above Variscan will take over 68sq km of
and below ground risks of numer- granted tenements on completion of
ous projects and the Spanish assets the deal, a sizeable land position in
ticked a lot of boxes on both.” one of Europe’s most prolific base
Dickson is conscious of Europe’s metals belts.
reputation among investors for slow “It sounds small by Australian
permitting by regulators and anti- standards but that is a huge land
mining sentiment from communities package for Europe,” Dickson said.
but said it was wrong to paint all the “And, it is next door to Riocen. The
EU with the same brush. Spanish like to call Novales-Udias
“It is important not to box France the little brother of Riocen but we
and Spain as ‘just Europe’ when Variscan managing director Stewart Dickson with think it could be the twin brother.
it comes to assessing their min- Cantabria provincial president Miguel angel Revilla There is the opportunity to prove it is
ing attractiveness,” he said. “They a genuine Tier 1 asset in the mould
are completely different sovereign juris- Part of Cantabria’s willingness to en- of Riocen.”
dictions. Spain’s mining and exploration gage with explorers and miners comes The transaction will see Variscan issue
framework is devolved to the regions; Ma- from its familiarity with the industry with Slipstream $2.2 million in shares and take
drid is not involved in permitting or licens- its mining history dating back hundreds of on the Spanish subsidiary’s $600,000
ing at all and that means if you choose the years. Tradition is also a key attraction for debt. Subsequent share issues will be
right region there is the ability to work.” Variscan. undertaken if Variscan delineates a 4mt
In Cantabria, Dickson believes Variscan The two projects it has agreed to ac- and 8mt inferred resource at each of the
has chosen such a region. He said project quire both boast historical precedent. The projects.
vendor Slipstream Resources Ltd’s pro- Novales-Udias zinc project is less than Dickson said Variscan’s shareholders
gress with local authorities and stakehold- 10km from the 62mt @ 9.7% zinc-plus- had shown strong support for the acquisi-
ers prior to Variscan’s arrival had proven lead Reocin mine while the Guajaraz pro- tion.
the region was pro-mining. ject is the site of the former La Union base “There has been a fantastic reaction to
“It was apparent from Slipstream’s expe- metals mine. the deal,” he said. “Our major sharehold-
rience that Cantabria was very favourable However, like much of Europe, the area ers are very patient and have indicated
to exploration and mining development,” has seen little modern exploration and they will be voting in favour of the deal. The
he said. “Those views have been rein- Dickson sees the mix of historical mining recent capital raising [the company raised
forced in our own visits. I have met with and a lack of recent activity as offering $3 million in a two-tranche placement in
the provincial president who is really keen Variscan both short-term and longer-term October] so a lot of existing sharehold-
on having a diverse, stable economy. opportunities. ers follow their money. The retail investors
“Cantabria has changed its land use “At Novales-Udias we think there are have also been supportive; they love zinc
laws as part of a deliberate policy to en- early cash flow opportunities by hitting and see these two projects have all the in-
courage exploration and mining. It has the high-grade (15-30% zinc) remnant gredient parts for a strong story.”
taken away a lot of the restrictions.” ore bags. It was relatively unsophisticated
Dickson said Cantabria president mining and we think there is a lot left.” – Dominic Piper

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