Unico boosts silver ounces as precious metal holds spotlight

Silver exploration company Unico Silver has announced a substantial increase in its silver resource estimate at the Cerro Hermoso project in southern Peru, positioning itself to capitalize on the current strength in silver markets.

The updated mineral resource estimate shows 15.1 million ounces of silver at an average grade of 69 grams per tonne, representing a 30 percent increase from previous assessments. The company’s flagship project now boasts 6.8 million tonnes of silver-bearing ore across measured, indicated, and inferred categories.

Unico Silver’s Executive Chairman, Keith Spence, described the resource upgrade as a significant milestone that validates the company’s exploration strategy in the historically productive region.

“This substantial increase in our silver resource comes at an opportune time as silver continues to trade strongly in global markets,” Spence said in a statement to investors. “The quality of the resource at Cerro Hermoso positions Unico to potentially become a meaningful producer in Peru’s silver sector.”

The announcement comes amid silver’s strong performance in commodities markets, with prices hovering near multi-year highs above $30 per ounce. The precious metal has benefited from both industrial demand in renewable energy applications and investment interest as a monetary metal during periods of economic uncertainty.

Peru remains the world’s second-largest silver producer after Mexico, contributing approximately 15 percent of global output. The country’s mining sector accounts for nearly 60 percent of its export earnings, with silver playing a crucial role alongside copper and gold.

Cerro Hermoso is located in Peru’s southern mining corridor, a region known for its polymetallic deposits. Historical mining in the area dates back to Spanish colonial times, though modern exploration has only systematically evaluated the district in recent decades.

The updated resource estimate follows an intensive drilling campaign completed earlier this year, which included 32 diamond drill holes totaling 8,500 meters. The company noted that mineralization remains open at depth and along strike, suggesting potential for further resource expansion.

Metallurgical testing indicates the ore is amenable to conventional processing methods, with silver recoveries exceeding 90 percent in preliminary tests. The company plans to conduct more detailed engineering studies as it advances the project toward potential development.

Industry analysts view the resource upgrade positively but note that Unico faces typical challenges associated with developing mining projects in the region, including securing environmental permits and establishing community relationships.

“The grade is impressive by global standards for primary silver deposits,” said Miguel Santos, mining analyst at Andean Mining Consultants. “However, the company will need to navigate Peru’s increasingly complex regulatory environment as it moves toward development decisions.”

Peru’s mining sector has experienced periodic social tensions in recent years, with communities demanding greater benefits and environmental protections. The government has attempted to balance these concerns with maintaining the country’s position as a leading mining jurisdiction.

Unico Silver reports having strong local support at Cerro Hermoso, having implemented community development programs and local employment initiatives since acquiring the project in 2019. The company estimates that full development could create approximately 350 direct jobs in the region.

The global silver market continues to exhibit supply constraints, with several major producers reporting declining grades at existing operations. This supply dynamic, coupled with growing industrial demand from electronics, photovoltaic cells, and medical applications, has contributed to analyst forecasts of sustained higher prices.

Silver’s dual role as both an industrial commodity and a precious metal makes it particularly sensitive to economic trends. Recent manufacturing data from China and the United States showing expansion in factory activity has provided additional support for industrial metals.

Following the resource announcement, Unico Silver outlined its next steps, which include completion of a preliminary economic assessment by the fourth quarter of this year. This study will provide initial projections on capital requirements, operating costs, and project economics.

The company also plans to continue exploration activities on several satellite targets within its 12,000-hectare land package, believing the broader district has potential for additional discoveries.

Financial markets responded positively to the announcement, with Unico’s shares trading up 8 percent on the Australian Securities Exchange, where the company is listed.

As the global transition to renewable energy accelerates, silver’s role in photovoltaic cells and other green technologies is expected to drive increasing demand. Analysts project that the solar industry alone could consume over 140 million ounces of silver annually by 2025, potentially creating favorable market conditions for emerging producers like Unico Silver.