Interview with Todd Williams, MD of Unico Silver

Recording date: 6th February 2025

Unico Silver (ASX:USL) is rapidly emerging as a significant player in Argentina's silver sector, having assembled a substantial resource base in the Santa Cruz mineral province. The company has built a 160-million-ounce silver equivalent (AgEq) resource through strategic acquisitions and exploration, positioning itself as the third-largest holder of silver resources in the region behind Newmont and AngloGold Ashanti.

Starting as a A$3 million junior explorer in 2019, Unico Silver executed a focused consolidation strategy, acquiring two key adjacent projects - Cerro Leon and Joaquin - at a remarkably low cost of A$0.10 per silver equivalent ounce. The acquisitions followed two years of complex negotiations to consolidate the district from five separate owners.

The company's flagship Cerro Leon project holds over 90 million ounces of silver equivalent resources, while the adjacent Joaquin project contains over 65 million ounces. Management sees significant exploration upside in the unexplored depth extensions of high-grade polymetallic vein systems across both projects.

To capitalize on this potential, Unico Silver has launched a major 50,000-meter drill program, currently 5% complete, aimed at expanding the resource base to 250-300 million ounces. The company is developing a conceptual mine plan centered on a processing facility at Cerro Leon, which could potentially produce 8-12 million ounces of silver annually.

The proposed development strategy involves a two-phase approach: initial processing of oxide material from both projects in the first five years, followed by the addition of a flotation plant to treat deeper polymetallic mineralization. This staged approach aims to optimize the project's economics while building towards a long-life mining operation.

The investment case for Unico Silver is strengthened by broader market dynamics in the silver sector. Demand for silver is experiencing significant growth, particularly from the photovoltaic industry, which now consumes over 300 million ounces annually - up from minimal levels a decade ago. This increasing demand, coupled with flat to declining mine supply and limited new projects in development, creates a favorable environment for new silver producers.

Managing Director Todd Williams summarizes the opportunity: "I think tomorrow will not be like the past, you know, I think we're moving into a new paradigm and we're preparing ourselves for that paradigm." With strong institutional backing and a clear development strategy, Unico Silver aims to establish itself as a major player in the global silver market by meeting the growing demand for silver in the renewable energy sector.

View Unico Silver's company profile: https://www.cruxinvestor.com/companies/unico-silver

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