Discovery Beyond Modelled Limits Raises Questions on Resource Size at Silica Hill
Kuniko Limited has discovered a new sulphide mineralised zone at Silica Hill, extending beyond previous models, as it wraps up its maiden Phase I drilling program. Assay results are expected soon, setting the stage for an expanded Phase II campaign.
- New 70m sulphide zone found 100m outside prior mineralisation at Silica Hill
- All six Phase I drill holes intersected visible sulphide mineralisation
- Phase I drilling totals 1,239m; assays pending with results due early April
- Additional mineralisation confirmed at Commonwealth South beyond known limits
- Phase II drilling planned to target resource growth and new zones
A Significant Step Beyond Previous Boundaries
Kuniko Limited (ASX:KNI) has announced a noteworthy breakthrough at its Commonwealth-Silica Hill gold-silver project in New South Wales, revealing a new offset sulphide mineralised zone at Silica Hill. The discovery came from hole CMKNI004, which intersected a broad 70-metre zone of disseminated and stringer sulphides, including a 0.5-metre thick sulphide vein. Crucially, this zone lies approximately 100 metres outside the previously modelled mineralisation wireframe, suggesting the system’s footprint is larger than earlier understood.
This new zone remains open in multiple directions; up-dip, down-dip, and along strike; indicating potential for further extensions. The style of mineralisation, hosted within sericite-altered rhyolite porphyry, aligns with the known characteristics of the Silica Hill system and may represent a down-dip extension of the deposit.
Phase I Drilling Program: A Strong Start
The maiden Phase I diamond drilling program is now complete, comprising six holes totalling 1,239 metres. Impressively, all holes intersected visible sulphide mineralisation, including step-outs beyond existing mineralised zones at both Silica Hill and Commonwealth South. For example, holes CMKNI005 and CMKNI006 at Commonwealth South intersected variable widths of sulphides outside previously identified mineralisation, reinforcing the prospectivity of the broader system.
While assay results from this program are still pending, they are expected in early April and will be pivotal in confirming the grades and economic potential of these new zones. Historical drilling in the area has returned high-grade intercepts, such as 41 metres at 2 g/t gold and 147 g/t silver, providing encouraging context for Kuniko’s exploration efforts.
Looking Ahead: Phase II and Regional Exploration
With Phase I complete, Kuniko is poised to advance into a larger Phase II drilling campaign aimed at expanding the resource base and following up on the newly identified mineralised zones. The company is also conducting integrated geophysical and geochemical reviews to refine drill targeting across the Commonwealth project area, including regional prospects like Gladstone West and Geenobby.
Situated within the prolific Lachlan Fold Belt; a Tier-1 mining region hosting major operations such as Cadia-Ridgeway and North Parkes; the Commonwealth-Silica Hill project benefits from a geological setting known for significant gold-silver-base metal deposits. Kuniko’s earn-in joint venture with Impact Minerals provides access to a substantial portfolio of exploration licences covering multiple prospects, underpinning the company’s strategic growth ambitions.
Operational and Environmental Considerations
Kuniko has acknowledged the safe and efficient execution of the drilling program by Titeline Drilling and the ongoing cooperation of local landholders. The company maintains a commitment to ethical sourcing, environmental stewardship, and alignment with sustainable development goals, reflecting broader industry trends towards responsible mineral exploration.
Bottom Line?
As Kuniko awaits assay results, the discovery of a new mineralised zone beyond existing models could redefine the project’s scale and value, with Phase II drilling set to unlock further potential.
Questions in the middle?
- What grades will the pending assay results reveal for the new Silica Hill mineralised zone?
- How extensive is the newly discovered sulphide zone along strike and at depth?
- What impact will these findings have on Kuniko’s planned maiden resource estimate?
