Kuniko Advances Commonwealth JV with $3M Earn-In in NSW Gold-Silver Project

Strategic Joint Venture Agreement

Impact Minerals Limited (ASX – IPT) has formalised a joint venture agreement with Kuniko Limited (ASX – KNI) over the Commonwealth gold-silver project, located in the prolific Lachlan Fold Belt of New South Wales. Following a swift due diligence period, Kuniko has secured the right to earn up to a 70% interest in the project by committing $3 million in exploration expenditure over four years. This arrangement marks a significant step in advancing exploration activities on a project that holds promising mineral resources.

Under the terms, Kuniko will initially earn a 51% stake by spending $1.5 million within two years, with a further $1.5 million expenditure over the subsequent two years to increase their interest to 70%. Impact Minerals will retain a 30% interest, which will be free-carried until a Decision to Mine is made, after which Impact can either contribute or dilute to a 10% interest that converts to a 2% Net Smelter Royalty.

Project Potential and Geological Context

The Commonwealth Project covers 565 square kilometres in the northern Lachlan Fold Belt, approximately 100 kilometres north of Orange, NSW. This region is renowned for hosting world-class deposits, including porphyry copper-gold, epithermal gold, and volcanogenic massive sulphide (VMS) deposits. Impact’s exploration has identified the Commonwealth deposit as a high-sulphidation, gold-rich VMS system, with strong geological parallels to the Eskay Creek deposit in Canada’s Golden Triangle; a globally significant source of gold and silver.

Current inferred resources at Commonwealth include approximately 88,800 ounces of gold and 3.3 million ounces of silver, alongside valuable zinc and lead credits, all within 250 metres of surface and open at depth and along strike. The Silica Hill prospect, part of the broader project, hosts an additional inferred resource of over 2 million ounces of silver and 18,000 ounces of gold, highlighting the district-scale potential.

Strategic Implications for Impact Minerals

For Impact Minerals, the joint venture represents a strategic move to monetise a non-core asset while maintaining significant upside exposure. The company has recently divested its Blackridge project and is focusing its resources on advancing the Lake Hope High Purity Alumina project and exploration at Broken Hill. By partnering with Kuniko, Impact can leverage external capital and expertise to accelerate exploration at Commonwealth without diluting its core focus.

Managing Director Dr Mike Jones expressed optimism about the partnership, noting the timing is favourable given record gold and silver prices. He highlighted the potential to expand the resource base at Commonwealth, which remains open for further growth. The JV structure also provides Impact with a free-carried interest, preserving value while mitigating near-term capital requirements.

Looking Ahead

Kuniko is preparing to commence its initial exploration phase, refining existing targets and testing new ones ahead of drilling campaigns. The success of these activities will be pivotal in unlocking the project’s potential and advancing it towards development. Investors and analysts will be watching closely for updates on exploration results and expenditure milestones that trigger Kuniko’s earn-in rights.