Unico Silver's June 2024 Quarterly Report Highlights Cerro Leon and Sierra Blanca Developments
USL (USL) Share Update July 2024 Monday 29th
Unico Silver Reports Significant Progress in Cerro Leon and Sierra Blanca Projects
Unico Silver Limited (ASX: USL) has released its quarterly report for the period ending 30 June 2024, showcasing significant advancements in its Cerro Leon and Sierra Blanca projects in Argentina. The company continues to expand its silver-focused portfolio, aiming to enhance its resource base and exploration potential.
Instant Summary:
- Release of an Exploration Target for Cerro Leon project.
- 100% acquisition of Sierra Blanca silver-gold project.
- Regulatory approvals received for drilling at Cerro Leon.
- Cash balance of $5.05 million at the end of June 2024.
Cerro Leon Exploration Target
During the quarter, Unico Silver announced an Exploration Target for the Cerro Leon project in the Pinguino district. This target is in addition to the existing JORC (2012) Mineral Resources Estimate (MRE) of 91 million ounces of silver equivalent (AgEq) at 172gpt AgEq. The Exploration Target incorporates 30 prospects, including 18 extensions of mineral resources and 12 lateral extensions of mineralized veins. The potential quantity and grade are conceptual, with further exploration needed to estimate a mineral resource.
Sierra Blanca Acquisition
Unico Silver completed the acquisition of the Sierra Blanca silver-gold project from Austral Gold Limited and Capella Metals Limited on 24 July 2024. This acquisition consolidates the Pinguino vein field under a single entity for the first time. Historical drill results indicate significant resource growth potential, with notable intersections including 21m at 244gpt AgEq and 11m at 655gpt AgEq. An Environmental Impact Assessment (EIA) has been submitted, targeting drilling permits by Q4 2024.
Drill Permits for Cerro Leon
In July, Unico Silver received regulatory approvals for drilling at the Cerro Leon project. The permits cover Reverse Circulation (RC) and Diamond Drilling across all exploration titles in the Pinguino district, which boasts the second largest vein field in the province. The company plans to commence field activities in mid-September following the winter break.
Corporate and Financial Overview
Unico Silver's cash balance at the end of June 2024 was $5.05 million. The company spent $232k on exploration and evaluation, $101k on staff costs, and $276k on administration and corporate costs during the quarter. The company also realized a gain of $19k from the sale of Argentine sovereign bonds.
The announcement of new exploration targets and the acquisition of Sierra Blanca are likely to positively impact Unico Silver's stock. These developments enhance the company's resource base and exploration potential, which could attract investor interest. The regulatory approvals for drilling at Cerro Leon further strengthen the company's position in the silver market. However, the conceptual nature of the Exploration Target means that actual resource estimates will depend on future drilling results.
Investor Reaction:
Analysts have expressed optimism about Unico Silver's strategic acquisitions and exploration plans. The consolidation of the Pinguino vein field and the potential for resource growth at Sierra Blanca are seen as positive developments. Investors are likely to monitor the company's drilling progress and upcoming resource estimates closely.
Conclusion:
Unico Silver's June 2024 quarterly report highlights significant progress in its key projects, positioning the company for future growth. Investors should keep an eye on the company's drilling activities and upcoming resource estimates to assess the long-term potential of these developments. Unico Silver's strategic focus on expanding its silver portfolio could yield substantial returns for investors.