Unico Silver (ASX:USL) has confirmed multiple high-grade silver discoveries at its Cerro Leon Project in Argentina, following final results from its phase-two diamond drilling campaign. The 9,143-meter program across 63 holes yielded significant mineralisation at four newly defined targets: Savary, Kasia, MS Link and Silvia.
The Cerro Leon Project, located in the prolific Santa Cruz mining district, returned standout grades, including 30m @ 293 grams per tonne (g/t) silver equivalent from 92.6m at Savary and 39m @ 150g/t from 60.6m at Kasia. The MS Link target produced 72.4m @ 83g/t from 46.6m, while Silvia delivered 12.8m @ 159g/t from 140.2m.
But the most eye-catching results came from the Karina prospect, where shallow oxide mineralisation continues to exceed expectations. Drill intercepts included 7.6m @ 980g/t silver equivalent from 11.4m and 1.7m @ 4,625g/t from 52m, within a broader intercept of 13m @ 772g/t from 42m. Individual assays peaked at 5,638g/t silver — among the highest grades seen at the project to date.
Phase Two Underscores District-Scale Potential
The second phase of drilling, which began in January 2025, was aimed at testing vertical continuity across Cerro Leon’s priority prospects and extending the existing resource base. Unico deployed two rigs with a 10,000-meter drilling mandate. According to Managing Director Todd Williams, each major target returned high-grade silver intercepts, supporting the project’s scalability.
“Notably, Karina continues to impress with some of the highest-grade shallow oxide silver drilled to date,” Williams stated. “These results validate our geological model and open up potential across multiple corridors.”
Phase Three Targets Resource Conversion and Expansion
Following the strong outcomes from phase two, Unico Silver has launched a 6,500-meter phase-three program, combining reverse circulation and diamond drilling. The aim is to upgrade mineralisation to indicated status and to pursue broader district-scale opportunities — including polymetallic and bulk-tonnage targets such as MS Link.
The Cerro Leon Project — which includes the Pinguino, Sierra Blanca and Conserrat districts — was consolidated through three transactions completed between November 2022 and May 2024. It now holds a total indicated and inferred resource of 16.5 million tonnes @ 172g/t for 91.3 million silver-equivalent ounces.
Prime Location in Mining-Friendly Santa Cruz
Santa Cruz is widely regarded as one of Argentina’s most mining-supportive jurisdictions. The region hosts some of the world’s leading mining companies, including Newmont (NYSE:NEM), AngloGold Ashanti (NYSE:AU), Pan American Silver (NYSE:PAAS), and junior players such as McEwen Mining (NYSE:MUX), Hochschild Mining (LSE:HOC), and Cerrado Gold (TSX-V:CERT).
In an interview with Mining.com.au in March, Williams emphasized the low political and environmental risk profile in Santa Cruz. “It’s a proven, pro-mining state,” he said, pointing to its stable permitting regime and infrastructure.
Strategic Importance for Unico Silver
Together with the adjacent Joaquin project, Cerro Leon represents one of the largest pure-play silver resource portfolios in the region. The company is aggressively advancing both assets to capitalise on strong silver market fundamentals, which remain underpinned by industrial demand and investor interest amid tightening supply.
As drilling continues, Unico Silver is expected to release further updates in the second half of 2025, particularly as it moves toward delineating indicated resources and evaluating economic extraction scenarios. Analysts will be watching closely as the company seeks to firm up its standing in the global silver exploration landscape.
