Unico Silver unveils Cerro Leon project growth plans
Unico Silver (ASX: USL) is preparing to undertake new corporate and exploration activities to further expand its success at the flagship Cerro Leon project in Argentina.
Earlier this year Unico released a significantly upgraded mineral resource estimate (MRE) for the Cerro Leon project which featured an 84% increase in resource numbers to 92 million ounces of silver.
Notably, the MRE only considered material within 150m of the surface at a 50g/t silver equivalent cut-off grade from a number of currently identified prospects.
That latest assessment was focused on potential target volume for open pit mining and Unico believes there is potential for deeper mineral resources.
Further growth upside
Cerro Leon block models have also identified an opportunity to further significantly increase resource numbers by including unclassified mineralisation into indicated and inferred categories by increasing drill density.
The company is currently awaiting approval for permits to allow for a combined diamond and RC drill program at the project.
In releasing the company’s September quarterly results, managing director Todd Williams said the quarter was a period of consolidation following the finalisation of the company’s Pinguino transaction and the 84% increase in the Cerro Leon silver resource.
“The company is waiting on final approvals for the inaugural drill program at Cerro Leon to expand the current 92 million ounce of silver equivalent resource through renewed regional exploration and new discoveries.
“We are pleased to have received a VAT tax refund in Argentina for the period 2019 and 2021, offsetting expenditures for the September quarter and maintaining a strong cash balance of $8.26 million.”
Two adjacent fields
Cerro Leon is comprised of two adjacent epithermal vein fields – the greenfields Conserrat project and the advanced Pingüino project, located 15km apart.
Unico acquired the Pingüino silver and gold project in March this year.
Mr Williams revealed that the company is undertaking an ongoing business development study with the view to further strengthen the Cerro Leon portfolio through regional consolidation and project acquisition.
Significant upside available
Unico believes the Cerro Leon silver project offers a number of strategic advantages, including over 100 lineal kilometres of underexplored epithermal veins which may support future resource growth.
Previous exploration has identified numerous prospects in the project area where mineralisation is open at depth or along strike.
The company has also identified 35 advanced and early-stage targets that are prospective for new vein discoveries within the nearby Pingüino and Conserrat vein districts.
Unico says both vein districts are underexplored when compared to similar epithermal vein districts in the Santa Cruz province of Argentina.
The company has identified that significant potential exists for blind vein discoveries.
Potential New Hope sale
Thanks to its success to date at Cerro Leon, Unico is now making Argentina its focus.
It currently holds a large 175 sq km strategic landholding at the New Hope project in the prolific Cobar superbasin of New South Wales.
The Mount Hope project is considered to be analogous to other Cobar style deposits such as the Peak and Perseverance mines located within the Cobar gold fields.
However, the company has revealed that with its current focus of silver and gold in the Santa Cruz province of Argentina it is considering options to sell or joint venture the Mount Hope project.