Argentina Silver Project Extends High-Grade Zones Ahead of PFS

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Silver investors are taking notice of Unico Silver's (USL:ASX; USLRF:OTCQX) latest operations update as the company builds momentum at its flagship Joaquin project in Santa Cruz province, Argentina.

Key Investor Takeaways

• Unico Silver's June drilling extended high-grade gold-silver mineralization beyond the March 2026 Mineral Resource across Breccia Puntudo, La Morocha SE, and La Negra SE at its Joaquin Project.
• The best hole to date returned 11.25m (meters) at 1,301 g/t AgEq (silver equivalent), including 6.8m at 1,934 gpt AgEq - the strongest result so far.
• Exploration drilling is now complete, with the company shifting focus to Pre-Feasibility Study workstreams ahead of a maiden PFS scheduled for late Q3 2026.
• Unico secured a major land position by acquiring the 10,172-hectare La Mata estancia for US$12 million, converting a lease into permanent ownership.
• Unico held AU$55 million in cash at quarter-end, with the combined Joaquin and Cerro Leon Mineral Resource standing at approximately 330 Moz AgEq.

Silver Market Opportunity Builds Momentum

Silver is recovering from a recent low after markets reduced bets on Federal Reserve rate hikes after disappointing U.S. jobs data. Despite projections of 110,000 new jobs being added to the market in June, actual numbers came in only around 57,000 - the lowest in four months. Silver also rallied support from rising oil shipments through the Strait of Hormuz and progress in indirect U.S.-Iran talks, which lowered oil prices and eased fears of inflation.

Higher demand from electric cars, solar panels, data centers, and more is shoring up silver's future demand. Yahoo Finance quoted experts from both BlackRock and J.P. Morgan as saying, "By the end of 2026, experts predict silver's price will surpass US$80 per ounce, and it could reach US$100 per ounce by 2030."

The silver sector as a whole is only showing signs of improvement. On May 7, 2026, Brian Taylor of Recycling Today said that the World Bank Group has predicted that overall global metals prices will rise by 17% in 2026, which would mark the first overall market increase since 2022.

Why Unico Silver Stands Out Now

Unico Silver is an Australian exploration and development company that holds a portfolio of properties in the Santa Cruz province of Argentina. In its June quarterly report, Unico laid out a slew of updates and news regarding the last three months of its 2026 operations. With drill results that have outshone an earlier MRE (Mineral Resource Estimate), a pivot from exploration to creating a PFS (Pre-Feasibility Study), and a market upgrade, there is a lot to break down.

Key Assets and Recent Catalysts at Joaquin

A statement from Unico's managing director, Todd Williams, said: "The June quarter capped off an excellent period of drilling at Joaquin. Across Breccia Puntudo, La Morocha SE, and La Negra SE, we have continued to deliver high-grade silver-gold intercepts, including the best holes recorded to date at both Breccia Puntudo and La Morocha SE, with mineralization extending beyond the March 2026 Mineral Resource and remaining open. With exploration drilling now complete, our focus has shifted firmly to advancing PFS workstreams (geotechnical, baseline environmental, and hydrology) ahead of the maiden PFS scheduled for late Q3 2026. The upgrade to the OTCQX Best Market further strengthens our profile in North America, one of the world's largest and most sophisticated markets for precious-metals investors, and the subsequent acquisition of the La Mata estancia secures the land required to develop Joaquin, a significant de-risking step for the project."

The operational update noted that June 2026 work focused on completing the exploration drill program at the Joaquin project and beginning the geotechnical, environmental, and hydrological workstreams necessary to support the project's upcoming PFS.

Key quarterly outcomes included assay results from 121 drill holes totaling 16,194 meters, which continued to deliver strong gold-silver intercepts across the Breccia Puntudo, La Morocha SE, and La Negra SE prospects. The acquisition of 100% interest in the La Mata estancia, which consists of 10,172 hectares of freehold land, secures land hosting the La Morocha and La Negra mineral resources, prospective extension, and preferred locations for major infrastructure. The company considers this acquisition a major de-risking milestone for the Joaquin PFS. The completion of the 2026 drill program means activity has transitioned to PFS work streams, with La Negra SE and La Morocha SE remaining open at depth and along strike.

Industry Timing and De-Risking Steps

In a corporate update, Unico noted that its quarter-ending cash balance was AU$55.07 million, after it paid AU$8.47 million toward exploration and evaluation, AU$113,000 in staff costs, and AU$672,000 in administrative and corporate costs. The combined Joaquin and Cerro Leon Mineral Resource stands at approximately 330 Moz AgEq, giving the company a substantial silver-equivalent inventory in a rising price environment.

Analyst Views and Valuation

On June 22, 2026, SCP Resource Finance LP reiterated its "Buy" Rating for Unico, and Canaccord Genuity did the same on July 9, 2026. According to the operational update, "With the exploration drill program complete, the company's near-term focus is on delivering the maiden Pre-Feasibility Study for Joaquin, scheduled for late Q3 2026. Key activities include advancement of PFS workstreams such as geotechnical drilling and interpretation to define open-pit slope and design parameters, completion of comminution and metallurgical testwork to confirm processing assumptions and recovery pathways, Phase 2 baseline environmental studies to support the EIA for mining approvals, and water-exploration drilling to support hydrological studies. Resumption of exploration drilling in Q3 2026 will target extensions at La Negra SE and La Morocha SE, which remain open at depth and along strike, along with completion of the La Mata estancia acquisition and progression of staged consideration payments."

Share Structure and Upcoming Events

Unico Silver Ltd. has a market cap of US$292.65 million, with 640.37 million shares outstanding. The company's 52-week range is US$0.24-US$1.19.

¹Institutions own 10.39% of shares, while Strategic Investors own 22.94%. Management and Insiders own 3.08% of shares, and the remaining 63.59% of shares are held by retail.

Common Questions from Investors

Q: What is a Pre-Feasibility Study (PFS)?

A: A Pre-Feasibility Study (PFS) is an engineering and economic study that evaluates whether a mining project has the potential to become a profitable mine. It examines factors such as mining methods, processing, costs, environmental considerations, and project economics before a final feasibility study is completed.

Q: What is a Mineral Resource Estimate (MRE)?

A: A Mineral Resource Estimate (MRE) is a scientific estimate of the amount and grade of minerals contained within a deposit. It is based on drilling and geological data and helps investors understand the size and potential value of a mining project.

Q: What does silver equivalent (AgEq) mean?

A: Silver equivalent (AgEq) is a way of combining the value of silver and other metals, such as gold, into a single silver grade. It allows investors to compare drill results more easily when a deposit contains multiple valuable metals.

Q: Why is extending mineralization beyond a resource estimate important?

A: When drilling extends mineralization beyond an existing resource estimate, it suggests the deposit may be larger than previously known. Additional drilling is needed to confirm the extension, but successful results can lead to future resource growth.

Q: Why is land ownership important for a mining project?

A: Owning the land where a mineral deposit is located can reduce development risk by giving a company greater control over mine planning, infrastructure, and permitting. It can also eliminate lease obligations and simplify future project development.

With exploration now complete and a clear path to the maiden PFS, Unico Silver offers retail investors a focused opportunity to follow a de-risked silver-gold project in a supportive market environment.