Unico Silver increases Cerro Leon silver equivalent resource to 92 million ounces
Unico Silver (ASX: USL) has unveiled a potentially company changing silver equivalent resource of 92 million ounces at its recently acquired Cerro Leon silver and gold project in Argentina.
Formerly known as E2 Metals, Unico has achieved a 94% increase in tonnes and 84% increase in silver equivalent ounces at Cerro Leon, which is made up of the Pingüino and Conserrat projects, located just 15km apart in the Santa Cruz province of Argentina.
The new mineral resource estimate (MRE) comes close on the heels of Unico’s successful completion of the 100% acquisition of the Pingüino asset from Austral Gold (ASX: AGD) in early March 2023. The deal was originally announced in late November 2022.
It was released just under a month after Unico successfully undertook a $5m Placement to accelerate the Cerro Leon resource work.
Formerly known as the Pingüino and Conserrat projects, Unico has successfully consolidated the Cerro Leon asset into what it now considers is one of the largest undeveloped silver and gold resources in the highly prospective Santa Cruz province.
Resource comparison
Unico was able to produce the significantly upgraded Cerro Leon MRE through the addition of new reserves from the main Pingüino field and the release of a maiden resource at Conserrat.
The new Pingüino numbers include first time modelling of historic vein resources and drill holes and the re-modelling of mineralisation from the Marta Centro prospect.
Globally relevant
Managing director, Todd Williams, said the MRE was delivered at an all-in discovery and acquisition costs of just $0.27 per silver equivalent ounce.
“This mineral resource update Is a huge step forward in our corporate aspirations of being a globally relevant silver development company,” he said.
“The size and grade of the MRE provides us with significant scale and elevates us into a new peer group, where on an enterprise value to resource ounce basis, Unico appears significantly undervalued.”
“This is a foundational resource that we will seek to grow, through exploration and further sensible district consolidation.”
Ideal location
Cerro Leon is located in the mining-friendly Santa Cruz province of Argentina, where its neighbours include significant multi-million-ounce precious metal projects such as Cerro Negro (Newmont) and Cerro Vanguardia (AngloGold Ashanti).
Mapped as covering approximately 12 km by nine km, Cerro Leon is considered to be the second largest vein field in Santa Cruz area where mineralised veins up to 13m wide in outcrop, covering a combined strike of 115 km, have been identified.
The area has received considerable historic exploration coverage including the 735 holes for 69,497m of reverse circulation RC and diamond drilling completed by Argentex from 2005 to 2013.
Upside to be tested
Unico is now preparing to explore the significant upside it has identified at Cerro Leon.
The campaign is focused on testing low-risk resource growth in mineralisation that remains open at depth and along strike.
It is also looking to explore for new discoveries in areas it considers as under explored.
The company’s plans are focused on increasing the Cerro Leon MRE to approximately 150M silver equivalent ounces in the lead up to a decision on the project’s development.