Unico Silver drills into growth at La Negra with 90m hit of high-grade silver-gold mineralisation

Unico Silver (ASX: USL) has delivered a significant leap forward in its quest to define a major silver resource in Argentina, with the latest drilling at the La Negra prospect producing a spectacular intercept that underscores the scale and grade potential of the Joaquin Project.

The standout diamond hole, JDD017-25, returned 90 metres at 144 grams per tonne silver equivalent (AgEq) from just 10 metres downhole, including 4 metres at 718g/t AgEq from 23 metres and 6 metres at 559g/t AgEq from 38 metres. The silver equivalent calculation is based on 1.3g/t gold and 40g/t silver, with high gold content in the richer zones tipping the scales in Unico’s favour.

This result represents a step-out of more than one kilometre southeast from the 2013 Foreign Estimate, significantly expanding the known footprint of mineralisation and suggesting the system remains open in all directions. The hole was drilled 25 metres west and down-dip of historical hole RD0037, which returned 13 metres at 167g/t AgEq — and crucially, JDD017-25 terminated in mineralisation.

Managing Director Todd Williams described the intercept as “a defining moment” for the project. “These results validate our geological model and demonstrate that the La Negra system is larger than previously interpreted,” he said. “With over 4,000 metres of assays pending, we are well positioned to deliver a robust, high-confidence JORC Mineral Resource for Joaquin in Q3.”

The La Negra prospect now has more than 2 kilometres of confirmed strike, with mineralisation occurring in near-surface oxide zones — a key factor for potential low-cost, open-pit development. The company’s exploration model is focused on free-milling, pit-constrained ounces that support its “PLUS 150” strategy: defining more than 150 million ounces of silver equivalent across the Joaquin and Cerro Leon districts.

Joaquin, located in Argentina’s Santa Cruz province, was acquired from Pan American Silver in 2024 and came with a 73Moz AgEq Foreign Estimate. Between 2019 and 2022, Pan American produced 4.3Moz silver from the project, mostly from shallow oxide zones. The broader Joaquin structure, however, remained underexplored until Unico’s recent efforts.

The current program — now concluded — included 205 drill holes for nearly 24,000 metres of drilling. Assays from the final 29 holes (4,374m) are pending. With JDD017-25 intersecting broad and high-grade mineralisation in previously untested ground, expectations are high for a significant update to the project’s resource base.

The La Negra system consists of vertical structures and sub-horizontal breccia and veinlet zones, hosted within Jurassic volcanic rocks of the Chon Aike Formation. Historical exploration identified multiple zones of silver-gold mineralisation, but it’s Unico’s systematic drill-out that is redefining the geological model and the scale of the opportunity.

The company’s nearby Cerro Leon project already hosts a JORC-compliant resource of 91.3Moz AgEq, and combining the two projects into a centralised development plan remains a logical next step. Unico’s ownership of both projects, along with existing regional infrastructure and past production history, puts it in a strong position to accelerate toward development decisions once the Q3 resource update is released.

With over 150Moz AgEq targeted across its portfolio, Unico is aiming to be more than just another silver hopeful. If future assays echo the promise of JDD017-25, the La Negra prospect may become the flagship asset in a district-scale play.