Unico Silver Ltd (ASX:USL) is set to acquire two contiguous properties in Argentina from global titan Pan American Silver Corp (NYSE:PAAS), with one – the Joaquin project – containing 73 million ounces of silver equivalent, in what Unico is describing as a ‘watershed’ moment for the company.
Unico has entered into a binding letter of intent to take on a 100% investment in the Joaquin and Cerro Puntudo projects – with a combined total land area of 35,946 hectares in Argentina’s Santa Cruz province – with these also being only 60 kilometres from the company’s Cerro Leon resource.
Joaquin is the main focal point, containing a historical Foreign Estimate of 16.7 million tonnes at 136 grams per tonne of silver equivalent (AgEq) for 73 million ounces of AgEq (68 million ounces of silver and 64,000 ounces of gold) from the La Negra and La Morocha deposits.
Hence, Unico is planning to roll out an extensive exploration program on four advanced prospects, with the goal of producing a JORC-compliant mineral resource estimate (MRE), building confidence from historical drill holes outside the current resource, which include 4.5 metres at 1699 grams per tonne of silver and 22 grams per tonne of silver from 272 metres.
Cerro Puntudo is not included in the Historical Foreign Estimates, although the project does host the along strike extensions of La Negra and La Morocha.
Managing Director Todd Williams said the location and geological features of these properties made them valuable assets to the company.
“The acquisition of Joaquin is a watershed moment for Unico Silver and brings into the portfolio a large open pittable silver resource on a permitted mining lease,” he said.
“The combination of Joaquin and Cerro Puntudo is a unique part of the transaction which sees 100% ownership of this emerging silver district into a single junior for the first time.
“The acquisition elevates USL into a unique global peer group with a clear pathway to +200Moz silver equivalent resource in pro-mining province: we look forward to shifting our focus from regional consolidation to exploration and advancing Joaquin to a maiden JORC compliant resource.”
Unico Silver shares have been trading at 19.5 cents.