Can Unico Silver Turn Its Massive 167Moz AgEq Joaquin Resource Into Profitable Production?

Significant Resource Expansion at Joaquin

Unico Silver Limited (ASX:USL) has delivered a major update to its Mineral Resource Estimate (MRE) for the Joaquin Project in Santa Cruz, Argentina. The new JORC (2012) compliant resource now stands at 45.3 million tonnes grading 115 grams per tonne silver equivalent (AgEq), equating to 167 million ounces AgEq. This represents a remarkable 143% increase in contained silver equivalent ounces since acquiring the project in late 2024.

Importantly, the resource growth is anchored by a robust 78% of tonnes classified in the Indicated category, reflecting high geological confidence. The resource includes 123 million ounces of silver and 521,000 ounces of gold, confirming Joaquin as a significant silver-dominant system with valuable gold credits.

District-Scale Scale and Strategic Milestones

When combined with the nearby Cerro Leon Project, Unico Silver’s total resource base now exceeds 330 million ounces silver equivalent, surpassing the company’s BEYOND 300 growth strategy milestone. This scale places Unico Silver among a select group of silver development companies globally with such a substantial resource within a single mining district.

The company’s PLUS 150 development strategy, which focuses on free-milling oxide mineralisation amenable to conventional open-pit mining and whole-ore cyanidation processing, is well supported by the updated resource. The combined free-milling oxide resource now totals 212 million ounces AgEq, underpinning the Phase 1 “Oxide First” development approach.

Technical Foundations and Upcoming Studies

The updated resource estimate is underpinned by an extensive 27,723 metres of drilling completed since April 2025, at an impressively low all-in discovery cost of just 11 US cents per silver equivalent ounce. The drilling has delineated mineralisation predominantly within near-surface oxide zones, which are favourable for open-pit mining.

Metallurgical testwork confirms that whole-ore cyanidation is an effective recovery method for the oxide and mixed mineralisation, with recoveries consistent with other deposits in the Deseado Massif region. This metallurgical confidence is bolstered by successful processing of similar ore at the nearby Manantial Espejo plant.

Unico Silver is progressing key technical programs including metallurgy, pit optimisation, geotechnical studies, flowsheet design, and environmental baseline work. The maiden Pre-Feasibility Study (PFS) is on track for completion in the third quarter of 2026, a critical milestone that will provide a clearer economic assessment and development pathway.

Geological Context and Exploration Upside

The Joaquin Project sits within the mineral-rich Deseado Massif, a Jurassic volcanic arc terrane known for its epithermal silver and gold deposits. Mineralisation occurs in structurally controlled vein, breccia, and stockwork systems hosted within rhyolitic volcanic rocks. The resource remains open at depth and along strike, indicating significant potential for further expansion.

Unico Silver’s comprehensive geological modelling and rigorous QAQC protocols lend strong credibility to the resource estimate. The company’s ongoing ~30,000 metre drill program aims to further delineate and upgrade resources, maintaining momentum in exploration and development.

Strategic Positioning and Market Implications

Managing Director Todd Williams emphasised the strategic importance of Joaquin as a cornerstone asset within Unico Silver’s portfolio. The scale and quality of the resource position the company well to unlock substantial long-term value from the district. With a clear development pathway and significant exploration upside, Unico Silver is poised to advance towards production and deliver shareholder value.