Variscan Mines Limited provided an update on the Phase 2 underground diamond drilling programme at its San Jose Mine, located in Cantabria, northern Spain. Variscan has completed 28 drillholes for approximately 760 meters of its previously stated minimum amount of 2,000 metres. This has been achieved despite delays that were beyond Variscan's control and has at times reduced drilling rates. In response to these matters, management action has been taken. With an extra drill-rig now being deployed by an additional drilling contractor, significantly improved drilling rates are anticipated as well as an increase to the total number of metres drilled in the Phase 2 campaign. Drilling undertaken to date has been focused on infill drilling and testing lower lenses at Los Caracoles. Trend and extensional drilling at the previously un-tested 168 Trend. As such, the Phase 2 underground drilling programme is on track to achieve its stated objectives. Initial exploration findings from current drilling programme are promising. While the current drill programme still has a way to run, it has already revealed: Intersections of massive sulphide mineralisation in previously untested 168 Trend in the Central Zone of the San Jose Mine ? for example see drillhole NOVDDT003. Positive visual indications of mineralisation in the lower lenses within the Los Caracoles Trend in the Central Zone ? for example see drillhole NOVDD0079.