Unico looking for ‘unicorn’ silver development resources

Rising silver prices and persistent supply deficits have created ideal conditions for junior miners to advance high-quality silver projects. Among them, Unico Silver is aggressively pursuing what it calls “unicorn” silver resources—exceptional deposits that could position the company as a significant player in the global silver market.

During a recent presentation at the 121 Mining Investment conference in New York, Unico Silver CEO Jason Kosec outlined the company’s strategy for identifying and developing premium silver assets. Kosec emphasized that while many companies claim to focus on silver, genuine silver-primary projects remain exceedingly rare in the mining sector.

“Most companies that call themselves silver companies are actually base metal companies with some silver credits,” Kosec explained. “We’re specifically targeting primary silver districts with potential for district-scale growth and consolidation.”

Unico’s flagship project, Epithermal, is located in Mexico’s historic Guanajuato Mining District, one of the world’s most prolific silver-producing regions with a 450-year production history that has yielded more than 1.5 billion ounces of silver. The company controls approximately 15,000 hectares in this district, making it one of the largest landholders in the area.

The Guanajuato district’s significance extends beyond its historical production. Despite centuries of mining activity, modern exploration techniques suggest substantial untapped potential. Kosec noted that much of the previous production came from mining depths of less than 400 meters, while comparable deposits elsewhere in Mexico have been successfully mined to depths exceeding 1,200 meters.

“The geology of Guanajuato suggests we’re only scratching the surface,” said Kosec. “Our technical team has identified multiple parallel vein systems that remain largely unexplored with modern methods.”

Unico’s technical team, led by Chief Operating Officer Randy Moore, brings decades of experience from major silver producers including Pan American Silver and First Majestic Silver. Moore’s expertise has been instrumental in identifying promising targets within the company’s extensive land package.

Market conditions appear particularly favorable for silver developers. The silver market has recorded supply deficits for several consecutive years, with the gap between production and demand expected to widen further. The Silver Institute forecasts a global silver deficit of approximately 140 million ounces for 2023, representing the third consecutive year of significant shortfall.

This persistent deficit has contributed to silver price stability despite broader market volatility. Unlike many commodities that experienced substantial price corrections in recent years, silver has maintained relative strength, hovering around $30 per ounce—a level that makes many previously marginal projects economically viable.

Beyond traditional industrial and investment demand, silver consumption is increasingly driven by emerging technologies. The metal’s critical role in solar panels, electric vehicles, and other green technologies has created what analysts call a “structural demand shift” that is likely to persist regardless of broader economic conditions.

“We’re seeing industrial demand growth that simply didn’t exist a decade ago,” Kosec stated. “Silver’s conductivity properties make it irreplaceable in many high-growth technologies, creating a floor for prices that benefits developers like Unico.”

The company’s development strategy focuses on minimizing capital expenditure while maximizing near-term production potential. Rather than pursuing massive, capital-intensive projects, Unico aims to identify high-grade resources that can be developed incrementally with modest initial investment.

“Our model is to start small, generate cash flow, and expand organically,” explained Kosec. “This approach reduces dilution for shareholders while providing flexibility to scale operations as market conditions warrant.”

Financing for junior silver developers has improved markedly in recent months. After years of challenging capital markets for mining companies, investors have shown renewed interest in silver-focused ventures, particularly those with assets in stable jurisdictions like Mexico.

Unico recently completed a $5 million private placement that was oversubscribed, indicating strong investor appetite for exposure to quality silver projects. The funds will support an accelerated exploration program at Epithermal, with drilling scheduled to commence in the current quarter.

The company faces competition from other silver developers, including MAG Silver and Discovery Silver, who are also advancing projects in Mexico. However, Kosec believes Unico’s extensive land position in a proven district differentiates the company from peers.

“The consolidation opportunity in Guanajuato is unique,” he said. “While many competitors are working on greenfield projects, we’re operating in a district with confirmed high-grade mineralization and established infrastructure.”

As supply constraints persist in the silver market, analysts anticipate increased merger and acquisition activity. Major producers facing depleting reserves may look to juniors with quality assets as potential acquisition targets, potentially creating exit opportunities for companies like Unico.

For now, the company remains focused on resource definition and expansion at Epithermal, with initial production targeted within 24 months. If successful, Unico’s strategy could provide a blueprint for other juniors looking to capitalize on favorable silver market fundamentals.