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Highlights
- Unico Silver has successfully acquired 100% ownership of the Joaquin and Cerro Puntudo properties, totaling 35,946 hectares.
- The Joaquin property contains historical estimates of 16.7 million tonnes at 136 grams per tonne silver equivalent, amounting to approximately 73 million ounces of AgEq, including 68 million ounces of silver and 64,000 ounces of gold.
- Unico Silver plans to conduct an extensive exploration program across four advanced prospects in the Joaquin Project.
Unico Silver Limited (ASX:USL) has announced the completion of its acquisition of the Joaquin Project, following the successful execution of definitive legal agreements with Pan American Silver Corp. (PAAS). The acquisition, which includes 100% ownership of the Joaquin and Cerro Puntudo properties, marks a significant milestone for Unico Silver as it expands its footprint in the Argentine mining sector.
Key Highlights
- Full Ownership of Joaquin and Cerro Puntudo Properties: The Joaquin Project consists of two contiguous properties, Joaquin and Cerro Puntudo, which together span a total area of 35,946 hectares. These properties are located approximately 60 kilometers west of Unico Silver's Cerro Leon resource, which contains an estimated 91 million ounces of silver equivalent (AgEq). This acquisition enhances Unico’s portfolio, offering opportunities to scale up its operations and improve project economics.
- Historical Resource Estimates: The Joaquin property includes two key deposits, La Negra and La Morocha, which together host a historical Foreign Estimate of 16.7 million tonnes at 136 grams per tonne (gpt) silver equivalent. This amounts to an estimated 73 million ounces (Moz) of AgEq, with 68 Moz of silver and 64,000 ounces of gold. Notably, the Cerro Puntudo property, which lies adjacent to Joaquin, is believed to contain along-strike extensions of these deposits, though it has not yet been fully explored.
- Exploration Potential: Unico Silver plans to embark on an extensive exploration program across four advanced prospects in the Joaquin Project. The company's goal is to increase the current resource estimates and eventually publish a maiden JORC (2012) Mineral Resource Estimate (MRE). Several high-grade drill intercepts, previously outside of the current resource, highlight the project’s potential. Key intercepts include:
- La Negra Feeder: 4.5 meters at 1699 gpt silver and 22 gpt gold from 272 meters.
- La Negra Extension: 3 meters at 2723 gpt silver and 4.1 gpt gold from 54 meters.
- La Morocha Extension: 8 meters at 226 gpt silver and 0.5 gpt gold from 189 meters.
- Untapped Vein Targets: In addition to the known deposits, the Cerro Puntudo property hosts several promising vein targets, such as Brunilda, La Esmeralda, and Isabella. These targets have exhibited high silver and gold values on the surface but remain untested by drilling, providing further exploration upside.
Infrastructure and Agreements
The acquisition includes valuable mining infrastructure, which is already in place, and a mining and access agreement valid until 2034. This infrastructure will facilitate future exploration and development activities and position the company to accelerate its operations. The access agreement ensures that Unico Silver can efficiently conduct work across the Joaquin and Cerro Puntudo properties without facing significant logistical hurdles.
Transaction Terms
The acquisition deal involves an upfront payment of USD $2 million, which has been funded from Unico Silver's existing cash reserves. Additionally, Unico has agreed to make further payments tied to key project milestones:
- USD $2 million upon the publication of an economic study supporting a mineral resource at the Joaquin Project.
- USD $8 million upon the commencement of commercial production.
Strategic Impact
This acquisition positions Unico Silver as a key player in Argentina’s silver mining sector. The Joaquin Project’s proximity to Unico’s Cerro Leon resource offers synergies that can enhance the company's future development options and improve the overall economics of its projects. The company’s exploration plans, coupled with the historical high-grade results from Joaquin, suggest strong potential for resource expansion and value creation.
Unico Silver's focus on increasing the resource base at Joaquin, coupled with the untapped potential at Cerro Puntudo, provides a solid foundation for future growth. The company’s efforts to establish a maiden JORC-compliant resource, alongside its advanced infrastructure and favorable mining agreements, highlight its commitment to delivering long-term value for shareholders.
