Unico Silver Strikes Big with Major Step-Out Success at La Negra
A breakthrough drill result at Unico Silver's La Negra prospect has significantly expanded the mineralised footprint and demonstrated strong potential for resource growth at the Joaquin Project in Argentina's silver-rich Santa Cruz province.
Game-Changing Intercept Expands Mineralisation Significantly
Unico Silver Limited (ASX: USL) has announced exceptional drill results La Negra Unico Silver from hole JDD017-25 at the La Negra prospect, featuring a remarkable 90-meter intercept grading 144 g/t silver equivalent from just 10 meters depth. This includes two high-grade zones:
- 4 meters at 718 g/t AgEq from 23 meters
- 6 meters at 559 g/t AgEq from 38 meters
The significance of this result cannot be overstated—it represents a major step-out that substantially expands the known mineralisation footprint well beyond the boundaries of the 2013 Foreign Resource Estimate.
"This is an exceptional result and a defining moment for the Joaquin Project," said Managing Director Todd Williams. "Hole JDD017-25 confirms the presence of shallow, broad, high-grade oxide mineralisation more than one kilometre south-east of the historical Foreign Estimate at La Negra."
Strong Technical Validation of Growth Potential
What makes this discovery particularly compelling is its location and geological context. The new intercept is situated 25 meters west and down-dip of historical hole RD0037, which previously returned 13 meters at 167 g/t AgEq. This confirms that mineralisation is expanding at depth, and importantly, the hole terminated in mineralisation, indicating potential for growth at the site.
The drill results at La Negra from Unico Silver have now confirmed over 2 kilometers of strike along the La Negra structure, with mineralisation remaining open to the south and at depth—presenting multiple vectors for future resource growth.
What is Silver Equivalent (AgEq) and Why It Matters
Silver equivalent is a method used to express the combined value of silver and gold in a single metric. For Joaquin, the company calculates AgEq based on the following formula: AgEq = Ag (g/t) + 79.18 × Au (g/t).
This calculation incorporates current metal prices ($23.5/oz for silver and $1,964/oz for gold) and expected metallurgical recoveries (95% for silver and 90% for gold). The formula allows investors to understand the total economic potential of a polymetallic deposit in terms of a single metal.
In the case of hole JDD017-25, the impressive 144 g/t AgEq grade over 90 meters represents significant value concentration, combining both the silver content (40 g/t) and gold content (1.3 g/t) in terms of silver equivalent.
Unico's PLUS 150 Strategy Taking Shape
This discovery directly supports Unico Silver's ambitious "PLUS 150" strategy, which aims to define more than 150 million ounces of pit-constrained, free-milling silver equivalent across the company's Joaquin and Cerro Leon districts.
Currently, the company has:
| Project | Resource Classification | Tonnes (Mt) | AgEq (g/t) | AgEq (Moz) |
|---|---|---|---|---|
| Cerro Leon | JORC Compliant | 16.5 | 172 | 91.3 |
| Joaquin | Foreign Estimate | 16.7 | 136 | 73.4 |
| Combined | 33.2 | 154 | 164.7 |
With drilling now concluded for the current phase and assay results for a further 29 holes (4,374 meters) still pending, Unico Silver is on track to deliver a robust, high-confidence JORC Mineral Resource for Joaquin in Q3 2025.
Strategic Position in a World-Class Silver Region
Unico's projects are strategically positioned in the highly prospective Deseado Massif geological province in Santa Cruz, Argentina—a region known for hosting multiple world-class silver-gold deposits.
The Cerro Leon project is located within the same structural corridor as AngloGold Ashanti's world-class Cerro Vanguardia mine, while the recently acquired Joaquin project (purchased from Pan American Silver Corp in August 2024) has already demonstrated its potential with historical production of 4.3 million ounces of silver.
The recent drill results at La Negra by Unico Silver represent a significant advancement in understanding the full potential of this silver district. Located in a region with historical gold finds and proven large-scale deposits, these results suggest the company is well-positioned to benefit from the area's established geological potential.
Understanding the Geology of La Negra Mineralisation
The Joaquin project, which hosts the La Negra prospect, lies within the Jurassic volcanic rocks of the Deseado Massif. This geological setting is characterised by extensive volcanic activity that created ideal conditions for precious metal deposition.
At La Negra specifically, mineralisation occurs within vertical structures composed of veins and hydrothermal breccias, as well as sub-horizontal layered bodies formed by stockworks, veinlets, and disseminated mineralisation. The oxide zones, which are the focus of current drilling, contain iron and manganese oxides along with various silver minerals including native silver and silver halides.
This geological context explains the exceptional drill results at La Negra, where Unico Silver has intersected broad zones of silver and gold mineralisation within these favourable host structures. The combination of vertical and sub-horizontal mineralisation creates potential for substantial resource volumes within relatively confined areas.
Why Investors Should Follow Unico Silver
Unico Silver represents a compelling investment case for several key reasons:
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Resource Growth Potential: The exceptional intercept at La Negra demonstrates significant upside beyond the current Foreign Estimate.
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Near-Term Catalysts: With assay results from 29 additional holes pending and a JORC Resource expected in Q3 2025, there are multiple near-term value drivers.
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Strategic Asset Portfolio: The company controls two major silver districts (Joaquin and Cerro Leon) in a premier mining jurisdiction.
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Clear Development Strategy: The PLUS 150 strategy provides a clear roadmap toward establishing a significant silver resource base.
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Experienced Management: The team has demonstrated their geological expertise through the successful targeting of the La Negra extension.
"With drilling successfully completed and over 4,000 metres of assay results pending, we are well positioned to deliver a robust, high-confidence JORC Mineral Resource for Joaquin in Q3," notes Todd Williams.
For silver investors seeking exposure to a growing silver developer with near-term catalysts and significant resource upside, Unico Silver offers a compelling opportunity worth following closely. Furthermore, investors interested in the silver space might also consider companies like Errawarra with their high-grade silver discovery at Elizabeth Hill or other explorers with recent drilling success in precious metals. The continued success of drill results at La Negra provides strong technical validation for the company's growth strategy.
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