Cerro Leon Drilling Yields 36m at 436gpt Silver, Boosting Resource Growth

Phase 3 Drilling Delivers Breakthrough Results

Unico Silver Limited (ASX, USL) has announced the completion of its Phase 3 drilling campaign at the Cerro Leon silver-gold project in Argentina's Santa Cruz province. The program, comprising 57 drill holes and over 4,200 metres of drilling, has yielded the company's highest silver intercept to date, a remarkable 36 metres grading 436 grams per tonne (gpt) silver from surface at the Marta Norte prospect. This intercept includes a 13-metre section averaging over 1,000 gpt silver equivalent, highlighting the exceptional grade and continuity of mineralisation near surface.

Dual-Track Growth Strategy Validated

The drilling results strongly support Unico Silver's dual-track growth strategy, as outlined in its recent corporate update. The first track, dubbed PLUS 150, focuses on expanding and upgrading the near-surface oxide resource base, which is critical for early-stage development and lower-cost extraction. Marta Norte's shallow oxide mineralisation exemplifies this approach, offering a robust foundation for resource confidence ahead of the planned Q3 2025 Mineral Resource Estimate (MRE) update.

The second track, BEYOND 300, targets deeper sulphide mineralisation to extend the project's resource life and scale. High-grade sulphide intercepts at Karina, Savary, and Tranquilo prospects; such as 26 metres at 321 gpt silver equivalent at Karina; demonstrate the potential to significantly grow the resource at depth. These findings add depth and diversity to Unico Silver's pipeline, positioning the company for sustained growth beyond initial oxide-focused development.

Strategic Regional Context and Portfolio Expansion

Cerro Leon sits within the Deseado Massif, a prolific silver-gold province that hosts AngloGold Ashanti’s Cerro Vanguardia mine. Unico Silver’s ownership of both Cerro Leon and the recently acquired Joaquin project from Pan American Silver Corp enhances its strategic footprint in this mineral-rich corridor. While the Joaquin project’s resource remains a foreign estimate pending JORC compliance, it adds significant scale with a historical estimate of 73 million ounces silver equivalent.

Looking Ahead, Resource Updates and Development Plans

The company remains on track to deliver updated JORC-compliant Mineral Resource Estimates for both Cerro Leon and Joaquin in the third quarter of 2025. These updates will incorporate the latest drilling data and are expected to provide a clearer picture of the project's economic potential. Unico Silver’s managing director, Todd Williams, emphasised that the Phase 3 results validate the company’s growth strategy and underpin its development plans, balancing near-term oxide resource advancement with longer-term sulphide expansion.

With a total of 183 drill holes completed at Cerro Leon to date, the company has built a substantial dataset to support resource modelling and feasibility studies. The detailed assay results, rigorous sampling protocols, and ongoing technical evaluations reflect a disciplined approach to advancing this promising silver-gold project.