Unico Silver has more than tripled its reported silver-equivalent resource base across Joaquin and Cerro Leon, ending FY26 with A$55.1 million in cash and a maiden Joaquin Pre-Feasibility Study ahead. The next stage will test whether geological scale can become an economically viable project.
- Combined JORC Mineral Resource of approximately 330Moz silver equivalent
- Joaquin resource reaches 167Moz AgEq, with 78% in the Indicated category
- A$75.3 million raised during FY26 and A$55.1 million held at year-end
- FY26 net loss widens to A$6.0 million
- La Mata acquisition and A$60 million placement reshape FY27 funding and access position
Resource scale moves Unico towards development
Unico Silver Limited (ASX:USL) ended FY26 with the sort of resource headline that can change the conversation around a junior explorer: approximately 330 million ounces of silver equivalent across its Joaquin and Cerro Leon projects in Argentina. The figure combines 167Moz at Joaquin and 162Moz at Cerro Leon, although it remains a Mineral Resource rather than an Ore Reserve or a forecast of recoverable production.
The biggest strategic shift came at Joaquin, where the company’s maiden JORC estimate replaced a historical foreign estimate and established the project as the principal focus of its initial development studies. The 45.3 million-tonne resource averages 115 grams per tonne silver equivalent, includes approximately 123Moz of silver and 522,000 ounces of gold, and is 78% classified as Indicated. That level of confidence allows mine design, production scheduling and economic assessment to proceed at Pre-Feasibility Study level, according to the annual report.
Drilling still points beyond the study area
Unico is not presenting the current resource as the end of the exploration story. Its FY26 Joaquin campaign reported assays from 268 holes totalling 38,661 metres, with results outside the March 2026 resource envelope and mineralisation remaining open along strike and at depth.
Several intercepts illustrate the potential, but also the inherently selective nature of exploration results. At La Morocha, hole JDD276-26 returned 52.3 metres at 378 grams per tonne silver equivalent, including 8.5 metres at 1,813 grams per tonne. At Breccia Puntudo, JDD228-26 intersected 11.25 metres at 1,301 grams per tonne, including 6.8 metres at 1,934 grams per tonne. These results support further resource work, but they do not by themselves establish project-wide grades or future mine economics.
Funding supports the feasibility push
The balance sheet gives Unico room to keep spending. The company raised approximately A$75.3 million before costs through two institutional placements and an upsized Share Purchase Plan, and held A$55.1 million in cash and cash equivalents at 30 June 2026. Net cash used in operating activities was A$2.3 million, while exploration and evaluation payments consumed A$33.0 million during the year.
That funding came with a larger equity base: ordinary shares on issue rose from 437.9 million to 634.5 million over the year. Subsequent to year-end, Unico also disclosed firm commitments for a further A$60 million institutional placement. The annual report does not treat that later raise as cash held at 30 June, so the company’s current funding position depends on completion of the placement and the demands of its expanding work programme.
Land and accounting changes alter the risk picture
After year-end, Unico agreed to acquire the 10,172-hectare La Mata estancia for US$12 million, comprising US$3.5 million in cash, US$2.5 million in shares and US$6 million in deferred cash payments. The land hosts the La Negra and La Morocha resources and preferred locations for processing, tailings and haul roads. Exclusive possession followed the initial cash and equity consideration, while title is due to transfer after the deferred payments are settled.
The accounts also look materially different after Unico changed its policy to capitalise qualifying exploration and evaluation expenditure from 1 July 2025. Exploration and evaluation assets stood at A$98.7 million at year-end, compared with a restated A$67.2 million a year earlier, while the prior-year loss was restated from A$24.0 million to A$1.2 million. The change affects the timing and presentation of expenses; it does not remove the underlying risk that these assets may ultimately prove unrecoverable.
FY27 hinges on reserves, approvals and economics
Unico reported a FY26 net loss of A$6.0 million, up from A$1.2 million, as total expenses increased and investment income fell. It remains pre-revenue, and the company’s own risk disclosures identify the central hurdles: converting Mineral Resources into an Ore Reserve, proving metallurgical and mining assumptions, securing water and infrastructure, obtaining approvals and qualifying for Argentina’s RIGI investment regime.
FY27 is therefore less about adding another impressive resource number than demonstrating what the existing one can support. The key evidence will come from the Joaquin Pre-Feasibility Study, resource conversion and permitting work, while the La Mata payment schedule and the new capital raise will show how far the development platform can advance before another financing decision is required.
Bottom Line?
The 330Moz resource provides scale, but the investment case now turns on conversion into an Ore Reserve, credible project economics and disciplined use of the new funding.
Questions in the middle?
- How much of the Joaquin Mineral Resource can be converted into a maiden Ore Reserve?
- Will the Pre-Feasibility Study support a stand-alone development after infrastructure, royalties and Argentine operating risks are included?
- How quickly will the A$60 million placement and La Mata payments translate into measurable feasibility and permitting progress?