Unico Silver’s Bold Expansion Raises Questions on Resource Upgrade and Development Risks
Unico Silver has completed its acquisition of the Joaquin silver district and launched a fully funded 50,000m drill program, revealing exceptional high-grade mineralisation across multiple prospects in Santa Cruz, Argentina.
- 100% acquisition of Joaquin project from Pan American Silver Corp completed
- Commencement of fully funded 50,000m drill program at flagship projects
- Phase 1 RC drilling delivers high-grade silver assays with mineralisation open at depth
- Strong cash position with $25.4 million following $22.5 million placement
- Phase 2 diamond drilling underway targeting vertical continuity and historical prospects
Strategic Acquisition Bolsters Santa Cruz Portfolio
Unico Silver (ASX: USL) marked a pivotal quarter ending December 2024 with the completion of its 100% acquisition of the Joaquin silver district from Pan American Silver Corp. This strategic move consolidates Unico Silver’s position in the prolific Santa Cruz province of Argentina, a region renowned for its rich epithermal gold and silver deposits. The acquisition was funded with a USD$2 million upfront cash payment from existing reserves, underscoring the company’s strong financial footing.
The Joaquin project, alongside the Cerro Leon project, forms a robust camp-scale portfolio that positions Unico Silver as a significant player in the region. Joaquin’s historical foreign resource estimate stands at 73 million silver equivalent ounces, complementing Cerro Leon’s JORC-compliant 91 million silver equivalent ounces, providing a substantial resource base for future development.
Drilling Program Delivers Exceptional Early Results
Highlights include standout intercepts such as 35 meters at 209 grams per tonne silver equivalent (AgEq) from 4 meters at Karina, including 2 meters at 1,500 gpt AgEq, and an exceptional Grade Thickness (GT) of 7,305 at the same prospect. At Archen-Chala, assays reached up to 3,134 gpt silver, with intercepts like 17 meters at 429 gpt AgEq from 95 meters depth. These results represent some of the thickest and highest-grade intercepts recorded by the company to date.
Phase 2 Diamond Drilling Targets Resource Expansion
Building on this momentum, Phase 2 diamond drilling commenced in early January 2025, focusing on extending the vertical continuity of mineralisation at priority prospects beyond the current MRE. This phase also targets several historical high-grade drill holes, including Ivonne Sur, Kasia, Marta Sur, and Savary, which could rapidly advance towards resource delineation. The program is expected to take approximately three months, with first assay results anticipated in March.
Financial Strength Supports Aggressive Growth
Unico Silver’s financial position remains robust following a $22.5 million placement completed during the quarter, boosting cash reserves to $25.4 million at period end. Exploration and evaluation expenses totaled $2.1 million, with acquisition costs of $4.8 million reflecting the Joaquin and Cerro Puntudo property purchases. The company also divested its Mount Hope Project in New South Wales, receiving shares in the acquiring entity, further streamlining its asset base to focus on Santa Cruz.
Outlook: Unlocking Santa Cruz’s Silver Potential
Unico Silver’s December quarter report signals a company transitioning from consolidation to aggressive exploration and resource expansion. The combination of high-grade drill results, strategic acquisitions, and strong capital backing sets the stage for significant value creation. As the Phase 2 diamond drilling progresses, the market will keenly watch for confirmation of vertical continuity and resource upgrades that could underpin future development decisions.
Bottom Line?
With high-grade assays and a strong balance sheet, Unico Silver is poised to redefine silver exploration in Santa Cruz.
Questions in the middle?
- How will upcoming Phase 2 diamond drilling results impact the current Mineral Resource Estimates?
- What are the timelines and plans for upgrading Joaquin’s foreign resource estimates to JORC compliance?
- How might Unico Silver’s consolidation strategy influence potential joint ventures or development partnerships?
