Sunnyside Gold System Remains Open: What Risks Lie Ahead for Koonenberry?
Koonenberry Gold has expanded the known strike of the Sunnyside gold system at its Enmore Project in NSW to over 230 metres, with visible gold observed in seven of nine drill holes. The company plans further drilling, supported by a strong cash position, to explore the system’s full potential.
- Visible gold found in 7 of 9 drill holes at Sunnyside Prospect
- Gold system strike extended to more than 230 metres along Sunnyside Shear Zone
- Mineralisation remains open along strike and at depth
- Initial 3,000m drilling program exceeded; additional 1,000m drilling planned
- Strong cash position of $5.35 million to fund ongoing exploration
Drilling Success at Sunnyside
Koonenberry Gold Ltd (ASX: KNB) has reported encouraging progress from its maiden diamond drilling program at the Sunnyside Prospect within the Enmore Gold Project in northeast New South Wales. Visible gold was observed in seven out of nine holes completed, a strong indicator of significant mineralisation. Geological observations from the drilling also identified alteration, veining, and sulphides in the remaining holes, all consistent with gold mineralisation.
Expanding the Gold System
The drilling results have extended the known strike length of the Sunnyside gold system to more than 230 metres along the structural corridor parallel to the granite-sediment contact. The mineralised zone is estimated to be approximately 80 metres away from this contact and extends to depths of around 300 metres. Importantly, the system remains open both to the southwest and northeast along the Sunnyside Shear Zone, suggesting further potential for expansion.
Ongoing Exploration and Funding
The initial drilling program targeted 3,000 metres but has already surpassed this with 3,041.8 metres completed. Encouraged by the results, Koonenberry plans to add approximately 1,000 metres of further drilling to test the limits of the system, subject to weather and site conditions. The company is well positioned financially to support this exploration, holding $5.35 million in cash as of 31 March 2025.
Awaiting Assay Results
While visual identification of gold is promising, assay results are pending for several key drill holes, with results expected between mid-May and mid-June 2025. These laboratory analyses will provide quantitative confirmation of gold grades and help refine the understanding of the mineralisation’s economic potential. Koonenberry cautions that visual estimates are not a substitute for assay data, which is critical for accurate resource evaluation.
Geological Context and Future Potential
The Sunnyside Prospect is structurally controlled by the Sunnyside Shear Zone, a major northeast-southwest trending fault at the contact between granite and sedimentary rocks. The orogenic gold mineralisation is hosted within complex vein and breccia systems, with indications that gold grades may increase with depth. The company’s broader portfolio includes multiple gold and copper projects across New South Wales, positioning Koonenberry to leverage its geological insights and exploration momentum to create shareholder value.
Bottom Line?
With visible gold extending the strike and depth of the Sunnyside system, Koonenberry Gold’s next assay results will be pivotal in defining the project’s true potential.
Questions in the middle?
- What will the upcoming assay results reveal about gold grades and resource potential?
- How will the planned additional drilling refine the understanding of mineralisation continuity?
- Could increasing gold grades at depth signal a high-value shoot within the Sunnyside system?
