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Highlights:

  • USL reports wide oxide gold-silver intercept in hole JDD017-25 at La Negra.
  • USL's drilling confirms mineralisation extends over 2km of strike; remains open at depth and south.
  • USL's Assays pending for 29 holes at Joaquin; updated JORC resource planned for Q3FY25.

Unico Silver Limited (ASX:USL) has reported a significant assay result from drill hole JDD017-25 at the La Negra prospect, part of its Joaquin Project in the Santa Cruz province of Argentina. The result represents a key development in the southeast extension of La Negra and supports the company's geological model that suggests a larger mineralised system than previously estimated.

Hole JDD017-25 was drilled approximately 25 metres west and down-dip from historical hole RD0037, which previously returned 13 metres at 167 grams per tonne silver equivalent (AgEq). The new hole confirmed a broad interval of shallow oxide mineralisation and terminated while still within mineralised material. Estimated true widths are approximately 80% of reported widths.

The intercept marks a notable expansion of the mineralised footprint, extending the system more than one kilometre southeast of the 2013 Foreign Estimate and confirming over 2 kilometres of continuous strike along the La Negra structure. According to the company, mineralisation remains open both to the south and at depth.

Unico Silver completed its most recent drilling program at Joaquin in late June 2025. The campaign totalled 4,374 metres across 29 drill holes, with assay results from those holes still pending. The company expects the remaining assays to further inform a revised JORC-compliant Mineral Resource Estimate (MRE) for the project, anticipated for release in the third quarter of 2025.

Unico Silver's broader asset base includes 100% ownership of the Cerro Leon and Joaquin silver-gold districts, located in the central Deseado Massif geological province. The Joaquin Project was acquired from Pan American Silver Corp (TSX:PAAS, NASDAQ:PAAS) in August 2024. The project previously hosted a Foreign Estimate of 73 million ounces AgEq from 16.7 million tonnes at an average grade of 136g/t AgEq. Historical production at Joaquin between 2019 and 2022 totalled 4.3 million ounces of silver.

The company's Cerro Leon Project lies within the same structural corridor as AngloGold Ashanti’s Cerro Vanguardia operation and currently hosts a JORC-compliant MRE of 91 million ounces AgEq, based on 16.5 million tonnes grading 172g/t AgEq. The recent intercept at La Negra supports Unico’s "PLUS 150" strategy, which aims to define over 150 million ounces of pit-constrained, free-milling silver equivalent resources across its two main districts. The company sees the Joaquin Project as a central pillar of this strategy, offering potential to convert historic estimates into compliant resources and to identify additional near-surface mineralisation suitable for open-pit development. As assay results from the 29 remaining drill holes are received, Unico Silver plans to update the market and incorporate the new data into its forthcoming resource estimate for Joaquin. These results will also help guide future exploration and potential economic studies.

Unico Silver is an ASX-listed precious metals exploration company focused on advancing silver and gold assets in Argentina. Its projects are located in established mining regions with existing infrastructure, and the company continues to evaluate opportunities to expand and de-risk its resource base through systematic drilling and strategic acquisitions.

USL trading at 22.73% higher at AUD 0.40 per share as on 14 july 2025.