Unico Silver Limited has successfully completed the acquisition of the Joaquin Project, consisting of two contiguous properties – Joaquin and Cerro Puntudo – marking a significant expansion in its portfolio. The announcement, which was made on 11 October 2024, confirmed the acquisition of 100% of the mineral claims for Joaquin, alongside the mineral titles for Cerro Puntudo. Both properties, which total 35,946 hectares, are set to enhance Unico Silver’s silver-gold resource base and development pipeline.

The Joaquin Project acquisition follows a comprehensive approval process and finalisation of legal agreements between Pan American Silver Corp. and Unico Silver Limited, demonstrating both parties’ commitment to the venture. Joaquin is particularly strategic, being located 60 kilometres west of Unico Silver’s Cerro Leon resource, a property which already boasts 91 million silver equivalent ounces. This acquisition is expected to further strengthen Unico Silver’s foothold in Santa Cruz, Argentina, providing potential for increased scale and future development options. The proximity to existing resources makes Joaquin an integral part of Unico Silver’s strategy to boost efficiency and reduce operational costs by leveraging shared infrastructure and expertise.

The combined resource potential of Joaquin and Cerro Puntudo provides Unico Silver with enhanced flexibility in planning future projects. This strategic advantage positions the company to capitalise on synergies between the two sites, creating opportunities for more efficient ore processing and transportation. Furthermore, the acquisition is seen as a means of mitigating exploration risks by diversifying Unico Silver’s portfolio of advanced prospects in Argentina’s mineral-rich Santa Cruz region.

Major Highlights and Acquisition Details

The Joaquin Project is rich with opportunity, containing historical Foreign Estimates of approximately 16.7 million tonnes at 136 grams per tonne silver equivalent (AgEq) for 73 million AgEq ounces, including 68 million ounces of silver and 64 thousand ounces of gold. The resource estimates, spanning the La Negra and La Morocha deposits, represent a promising addition to Unico Silver’s existing assets. Notably, these estimates exclude adjacent Cerro Puntudo properties, which host the along-strike extensions of the La Negra and La Morocha deposits. This could mean substantial additional value if exploration results confirm the continuity of mineralisation.

Further enhancing its prospects, the Cerro Puntudo property hosts several untested vein targets, such as Brunilda, La Esmeralda, and Isabella, all of which have demonstrated high silver and gold values at surface. The exploration team believes that these targets, which are still untested by drilling, have the potential to significantly increase the scale of the resource base. Historical drill data reveals promising intersections including a La Negra Feeder section with 4.5 metres at 1,699 grams per tonne of silver and 22 grams per tonne of gold, as well as a La Morocha Extension showing 8 metres at 226 grams per tonne of silver and 0.5 grams per tonne of gold.

As part of its immediate plans, Unico Silver intends to initiate an exploration program aimed at boosting these current Foreign Estimates and publishing a maiden Joint Ore Reserves Committee (JORC 2012) Mineral Resource Estimate. This exploration initiative could substantially improve the estimates of the silver and gold potential within the Joaquin Project, making it a game-changer for the company. The planned exploration will include detailed geological mapping, surface sampling, and a series of step-out drilling programs designed to expand known mineralised zones and define new high-grade targets.

The acquisition deal, worth $2 million upfront, was funded from existing cash reserves, with additional payments of $2 million scheduled upon the publication of an economic study supporting the mineral resource, and $8 million tied to future commercial production. This structured payment approach provides Unico Silver with financial flexibility, allowing the company to allocate its capital towards immediate exploration and development activities while deferring significant outlays until the project demonstrates further economic potential.

Expert Insight: Boosting Resource Potential

Industry analysts view the Joaquin Project acquisition as a strategic move for Unico Silver, potentially expanding its resource base significantly. According to market observers, acquiring an asset with proximity to Unico’s Cerro Leon resource enhances both exploration synergies and economies of scale, positioning the company for stronger growth in the medium to long term. Analysts have noted that developing both Joaquin and Cerro Puntudo could transform Unico Silver’s production capabilities, particularly if the exploration programs yield positive results.

Furthermore, analysts believe that the integration of Joaquin with Cerro Leon could facilitate streamlined development pathways. By focusing on the parallel development of Joaquin and Cerro Puntudo, Unico Silver stands to benefit from increased operational efficiency and reduced project risk. The combination of shared resources, such as camp infrastructure, access routes, and processing facilities, is expected to lower the overall costs of bringing these projects to production.

Additionally, the presence of promising targets at Cerro Puntudo that remain untested by drilling presents another key opportunity for resource growth. Such a scenario could help Unico Silver take advantage of the increased demand for precious metals, driven by both industrial and investment sectors. Analysts have highlighted that, should the exploration program confirm high-grade mineralisation at these targets, Unico Silver would be well-positioned to rapidly escalate its production profile.

The transaction also includes mining camp infrastructure and an access agreement valid until 2034, supporting the long-term feasibility of the Joaquin Project. This infrastructure is crucial in ensuring the project’s cost-effectiveness and operational readiness, enabling swift mobilization of personnel and equipment as exploration activities ramp up. The potential for future resource expansion adds a layer of excitement as Unico prepares for the next phase of this venture. Industry experts have noted that the inclusion of pre-existing infrastructure provides Unico Silver with a significant head start, reducing the capital expenditure typically required during the initial phases of a mining project.

As demand for silver and gold continues to rise globally, driven by technological advancements and the appeal of precious metals as a safe-haven asset, Unico Silver’s expanded resource base places it in a favourable position. The acquisition of the Joaquin Project not only boosts the company’s immediate exploration prospects but also enhances its longer-term production outlook, presenting shareholders with the potential for robust returns.

  Cerro Leon, Cerro Puntudo, Joaquin Project, La Negra, Pan American Silver Corp, Santa Cruz Argentina, Unico Silver Limited